Fed holds interest rates unchange, and hints rate cut could happen this year
Other reference:
Fed's Powell puts September rate cut on table as US inflation cool
Fed holds rates steady and notes progress on inflation
Market Sell-Off
Last Thursday, I held back on publishing my post because there was a strange sign in the market. I saw counters like SIA and Singtel, dropped more than technical adjustment after ex-dividend. And I also wondered why Keppel and UOB dropped after announced dividend. Why can't the good earning results support the share price.... my doubts had alerted me about the fund managers are not willing to stay in the market.
I had mentioned in my previous post, the Bank of Japan raised Interest Rates (Second time since 2007) last Tuesday, had triggered Yen carry trades unwind... so it had in turn provoke fund managers and institution investors to liquidate their assets (be it bonds or stocks) for money to convert back to Yen, since previously they borrowed in Yen. Though it may not be the only reason, but still the question is when is the sell-off will stop, and will it lead to a rebound. Honestly, it's hard to feel the bottom now. But my guess is Wednesday should see some changes.... Anyway, the market is filled with uncertainties now, unless it's spare cash, else don't buy on dip. But all stock has it's fair value, if the share prices touch below fair value... no harm to enter the market for bottom fishing.
But from now on, the markets no longer the same as before, the market momentum will change, especially U.S. election is on the way... and why U.S. needs to wait for another month to drop interest rate when the rest of the countries had started reducing interest rates in August. If carry trade unwind does give pressure to the U.S. dollar, then U.S. market may drop further if interest rate drop. Therefore, FOMC may not cut rate in September...
The above is some of my anticipation, and it's meant for investor to take it as reference.
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