More volatility ahead with huge divergence in global monetary policies

Singapore

THE volatility that has gripped financial markets since the start of 2022 is expected to worsen given the looming divergence in monetary policies between China and other major economies, notably the US, making risk management more crucial than ever this year.

"On one hand, we have the Fed that's ready to embark on an interest rate upcycle. And at the same time, China announced that they're going to be easing policy; quite extraordinary. The world seems very much out of sync," said Davis Hall, head of capital markets, Asia, at Indosuez Wealth Management, at a webinar presentation on the bank's Asia market outlook.