Hawkish FOMC this week's main feature
THE US Federal Open Markets Committee (FOMC) meeting this week was meant to be a non-event as markets had for several weeks already been expecting an interest rate hike. As it turned out, the Fed lived up to expectations with a 25 basis points rate hike but simultaneously indicated that there could be three more hikes next year instead of the two that markets had forecast.
This unexpected hawkishness brought the sellers out, dragging the Straits Times Index (STI) 23 points lower on Thursday. Even with a 7.09 points rebound on Friday, the STI lost a nett 20 points or 0.7 per cent over the week at 2,937.86.
Liquidity has been a problem throughout the year, the daily average rarely rising significantly above S$1-1.3 billion except on the last days of most months, when odd price movements customarily placed under the broad umbrella of "window dressing" typically take place.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
J&J advances US$6.48 billion settlement of talc cancer lawsuits
US holds quarterly debt sale steady, starts buybacks this month
US dollar nears six-month high after pre-Fed data shock, yen steady
KFC parent Yum reports surprise drop in global same-store sales on weak demand
Pfizer lifts 2024 profit view on cost cuts, higher Covid vaccine demand
Shell exits China power market businesses