Business

The US Feds decides to leave interest rates unchanged

The United States FOMC, the Federal Open Market Committee said to keep interest rates unaffected in the month of September, while gesturing a increase before the year end. Here is a rapid aspect on how the resolution would have an emotional impact on Hong Kong.

Property

The obtainability of inexpensive money will outgrowth Hong Kong’s developers to hustle up their efforts to souk new projects, taking benefit of a robust sales motion, said Thomas Lamthe Knight Frank’s head of valuation and consultancy.

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“Buying interest for new flats will continue to be strong over the next few months as interest rates remain low,” he said. “Home buyers will not be affected unless interest rates rise by more than two percentage points. That may not happen this year. The property market outlook is still determined by government policy and economic performance.”

Stock market

Hong Kong’s property stocksand Central Chinese banks are expected tobounce from last week’s drop.

Small interest charges in the US help Hong Kong’s high-payment stocks the most, said Ivan Li Sing-yeungthe Sinopac Securities’ research head.

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“Hong Kong’s stock market has priced in the possibility of a rate rise in December, therefore the market’s sentiment is more likely to be driven by China’s economy in the remaining months,” Li quoted.

Currency

Stockobservers hold miscellaneousbeliefs on how the Fed’s reaction will touch the US dollar and other primeeconomies.

“The meeting sets the stage for a December hike, which will support the US dollar, and limit any down side,” Bank of America-Merrill Lynch analystsreported.

The deliberatedspeed of financialstrengthening will limit any advantage to the US dollar, as the level of policy differenceremains to reduce with the Fed now only farsighted two climbs in 2017 and three in 2018, the bank said.

ShanielRamjee, who is a senior investment manager at Pictet Asset Management, believes the update to abate the US dollar and advance emerging markets including Asia and the outlook for commodities

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Thomas Shik, Hang Seng Bank’s acting chief economist, said even though the market accord is for a rate growth in the month of December, the likelihood of a November move is when the United States will elect its new president may not be omitted, as the US economy is strengthening up.

As there is still possibilities for the US dollar to build up, Shik continues his prediction on the aground yuan rate at 6.7 in contradiction of the US dollar by the end of the year.

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