Trump 2.0 a hurdle for S-Reit investors hoping for fast rate cuts
The counters are likely to move up when there is greater clarity on rate cuts under the Trump administration and the broader macroeconomic environment
INVESTORS of Singapore-listed real estate investment trusts, or S-Reits, would have had their bubbles burst after former United States president Donald Trump won the latest presidential elections in the country.
Close to two-thirds of S-Reits and business trusts listed on the Singapore Exchange (SGX) ended lower a day after the results, amid jitters that Trump’s policies will raise inflationary pressure on the US economy and lead to a slowdown in interest rate cuts by the Federal Reserve.
Trump’s re-election has dashed the hopes of investors, who had otherwise been anticipating the tide to turn for S-Reits after the US Federal Reserve finally cut interest rates last month. With the Fed indicating more cuts to come later this year and next, investors had been hopeful that S-Reits would finally see some easing in their cost pressures.
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