Singapore stock market poised for boost as Fed readies rate cut

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The roller coaster ride of global markets, triggered by the US central bank's rate hikes beginning in March 2022, may soon come to an end

SINGAPORE: In a move that could shake up global markets, investors are advised to shift their focus towards real estate investment trusts and other promising sectors in the Singapore stock market, as the Federal Reserve is expected to cut interest rates for the first time in four years.With the Fed’s September 17-18 meeting on the horizon, analysts predict a rally in risk assets, particularly stocks, as the era of high Fed rates, currently at 5.25% to 5.5%, draws to a close.

Despite the latest US consumer price data indicating that inflation is near its lowest levels since late 2022, there is a prevailing belief that the Fed will not rush into aggressive rate cuts, mindful of the risk of a 1970s-style inflation resurgence. The market is considered undervalued and underappreciated, with many stocks trading below their net asset values.

 

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