Market says US FED is done hiking rates
The
stock market is signalling that the US Federal Reserve is finished raising
interest rates. This has led to a rally in growth stocks, which are
particularly sensitive to interest rates. We are optimistic about the
short-term outlook for the S&P 500, but cautious about the long-term
outlook for equities.
We
believe that there are trading opportunities in the growth sector in the coming
week, but investors should be aware of the high volatility of growth stocks.
The bond
market, especially longer-term bonds, also rallied this week on the Fed's
perceived message that it is halting rate hikes. Fixed income investors may
want to consider averaging in at current levels.
In the
week ahead, we will be looking for stocks to pull back before going long. We will also be looking at interest rate-sensitive stocks in the
Hong Kong market.
Summary:
- The
Fed is likely done hiking rates.
- Growth
stocks are leading the rally.
- Cautious
on long-term equities outlook.
- Watch
for trading opportunities in growth and interest rate-sensitive stocks.
Headlines
for Week Ahead:
Corp
Earnings (BRK.B, HD, DBS, SIA, Capland Invest, OCBC)
US
Daylight savings ends on 5 Nov
US US
FED Chairman speaks
China Oct
CPI
Disclaimers
apply