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StockTalk(5.4): What impact will the US Fed's rate hike bring to the Singapore stock market?
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Today's hot topic is about the US Federal Reserve's rate hike decision.
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8 points for all mooers who participated in the poll below.
88 points for mooers who share their insightful ideas by commenting down.
8 points for all mooers who participated in the poll below.
88 points for mooers who share their insightful ideas by commenting down.
StockTalk(5.4): What impact will the US Fed's rate hike bring to the Singapore stock market?
The US Federal Reserve announced a 25 basis point rate hike overnight, raising the target range of the federal funds rate to 5%-5.25%, which is the 10th consecutive rate hike since March last year. In Singapore, the Straits Times Index inched up 0.03 percent at the midday trading break after dripping in the morning after the decision came out. Other Asia markets also showed a nervous and prudent mood.
While it signals a strong US economy, higher interest rates may result in reduced investment and slower economic activity for emerging markets like Singapore. However, the extent of the impact remains uncertain as other factors, such as trade tensions and geopolitical risks, also play a role.
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whqqq : The US Federal Reserve's decision to raise interest rates by 25 basis points may have a negative impact on the Singapore stock market, as higher interest rates could lead to a reduction in investment and a slowdown in economic activity in emerging markets like Singapore. However, the extent of the impact remains uncertain, as other factors such as trade tensions and geopolitical risks are also at play. Overall, the effect of the Fed's rate hike on the Singapore stock market will depend on various factors and will need to be closely monitored in the coming months.
71519856 : The economy in the US good or bad will always impact global markets on most sectors
102133981 : Causing loss of investment and loss of work
ZnWC : FED rate hike in short term may hit stock market especially tech stocks. It's aim is to reduce demand and cool inflation. When demand for tech products drops, revenue and profitability will follows. This will result in share price falling.
Flying Dolphins : Hike in rates will make investors to be on cautious sentiments therefore some may panic sell and buy causing volatility to the market
GodSpeed289 : Generally, the financial sector could benefit from higher interest rates, while the real estate or consumer sectors be negatively impacted by the Fed rate hike. As US interest rates rise, investors may be attracted to invest in US assets, leading to capital outflows from Singapore, resulting in a decline in the stock market as foreign investors sell Singapore stocks. Eventually, if it led to a global sell-off, the local stock market would be affected as well.
Gunshine305baby : automatically declined
Demascus : I think the rate hike was already priced into the market.
Moogoorooloo : The market has been expecting a rate hike of 25bp, so no surprises there. While an increase in interest rate is supposed to dampen the market, the hope that this may be the last rate hike in the near future may lend some support to stock prices.
EYSY : Think a lot of individual investors don't know how to react on rate hikes as they don't know the impact on rate hikes. So when the market goes up, they buy. When the market goes down, they sell. This just amplify the magnitude of movement in the stock market and thus increase volatility.