Singapore shares drop after US Federal Reserve delivers another rate hike

Singapore shares drop after US Federal Reserve delivers another rate hike

SINGAPORE: Singapore shares opened reduce on Thursday (Sep 22), tracking high losses overnight upon Wall Street following the US Federal Hold raised interest rates and signalled further hikes ahead.

The Straits Times Index (STI) kicked off the trading session 0. thirty seven per cent lower, down 12. 2 points to 3, 249. 59.

Duds outnumber gainers 85 to 30, as some 34. 7 mil securities worth S$58. 3 million transformed hands.

Banking stocks were one of the heavily traded stocks and shares in early morning business.

DBS was down 0. 57 per cent or S$0. 19 to S$33. 34. OCBC drop 0. 49 percent or S$0. 06 to S$12. 29 and UOB fell 0. 9 % or $0. twenty five to S$27. 43.

Elsewhere in Asia, Japan’s benchmark Nikkei 225 index declined 0. 9 per cent in early trade, while South Korea’s Kospi index dropped 1 per cent.

The US central bank announced its 3rd consecutive interest rate raise of 0. 75 percentage point on Wednesday, continuing the particular forceful action to tamp down pumpiing that has surged towards the highest in 40 years.

US stocks and shares seesawed following the statement and later finished the session in the red .

Markets have been expecting another large interest rate increase, but were caught away guard by the Fed’s outlook as far as the advantages of additional hikes.

The latest Fed declaration included interest rate projections for the end of 2023 and 2024 that are higher than the previous forecasts, signalling the fact that US central financial institution now sees the need for a more prolonged financial tightening cycle in light of inflation tendencies.

The Dow Jones Industrial Average closed down 1 ) 7 per cent with 30, 183. 78 on Wednesday. The particular S& P five hundred slid 1 . 71 per cent to a few, 789. 93 as well as the Nasdaq Composite dove 1 ) 79 per cent in order to 11, 220. 19.