STI gains as Fed confirms dovish stance

Equity markets also get a lift from news of the likely meeting between the US and China at the G-20 summit next week

Published Thu, Jun 20, 2019 · 09:50 PM

MARKETS like certain outcomes and its participants finally got confirmation of what they had been expecting from the US Federal Reserve - the door for impending rate cuts was open.

Understandably, regional equity markets staged broad gains on Thursday with the Straits Times Index (STI) being no exception. The blue-chip index extended gains, up 26.34 points or 0.8 per cent to finish at 3,314.51.

Australia, China, Hong Kong, Japan, Malaysia and South Korea all ended higher.

"Markets are now pricing in a very high probability that the Fed will cut rates at their next meeting on July 31, with a good chance that it will be a 50 basis point cut rather than a 25 basis point cut," said UBS Global Wealth Management's regional chief inves…

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes