US Fed’s dot plot indicate 4.5% rate peak next year, higher than consensus; Hang Seng may hit 17,000 – Morgan Stanley
STOCKS
US Fed’s dot plot indicate 4.5% rate peak next year, higher than consensus; Hang Seng may hit 17,000 – Morgan Stanley
STOCKS

US Fed’s dot plot indicate 4.5% rate peak next year, higher than consensus; Hang Seng may hit 17,000 – Morgan Stanley

 

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The US Federal Reserves raised interest rates by 75 basis points for the third time in a row to 3% – 3.25% and its “dot plot” guidance indicated a peak in the rate at 4.6% next year, ahead of the consensus, said Morgan Stanley in a note.

Morgan Stanley said that the Fed’s rate hike “dot plot” was negative for Asia / EM equities and continue to expect the market to march quickly towards its bear market targets for the MSCI EM and Hang Seng Index.

The broker targeted the Hang Seng Index at 17,000 under bear case, and projected the market to trough around these bear market targets in weeks rather than months from now.