Festivity on hold for stocks as rate hikes beckon

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SINGAPORE : Asia's stockmarkets made a wobbly start to the final full trading week of 2022, with the prospect of interest rates rising further next year taking the edge off festive cheer.The Federal Reserve and European Central Bank hiked rates and promised more last week, and speculation is even building

SINGAPORE : Asia's stockmarkets made a wobbly start to the final full trading week of 2022, with the prospect of interest rates rising further next year taking the edge off festive cheer.

Citing government sources, news agency Kyodo reported on Saturday that Japan is set to tweak its 2 per cent inflation targeting policy, possibly giving the central bank more wiggle room. The yen has been the worst-performing G10 currency this year, with a 15 per cent loss against the dollar, driven mainly by the gap between rising U.S. rates and anchored Japanese rates. Japanese government bonds were sold on Monday morning.

Softening economic data heading to year-end isn't offering much help to the mood either, leaving markets wondering where to look for the feel-good vibe that has rallied U.S. stocks in the last two weeks of December 11 times in the last 15 years.

 

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