UOB Global Economics and Markets Research’s senior economist Alvin Liew says the most consequential release of the Sep FOMC is likely the Dotplot which indicated strong but not unanimous support among policy members for one more hike in 2023.
The Straits Times Index ended the week of Sept 18-22 at 3,204, down 76 points week-on-week, losing almost all the gains the index registered in the week ending Sept 15. The index is likely to remain rangebound, moving around the confluence of the 50-, 100- and 200-day moving averages at 3,251, 3,229 and 3,253 respectively. It appears that the trading range for the index is likely to be around 1% above the moving averages and between 1.3%-3% below the moving averages for the time being. As such, immediate support is likely near the 3,200 area with more substantial support at 3,150.
Overall, and more broadly, developed markets’ equity markets may remain pressured by still-rising risk-free rates. Yields on the 10-year US treasuries are at 4.47% as at Sept 22. This is the highest level since 2007, before the global financial crisis.
