Capitalising on Interest Rate Shifts: Promising Sectors & Assets


Thoughts on Week Ahead:
Week 18 Dec 2023

Capitalising on Interest Rate Shifts: Promising Sectors & Assets
Markets navigate divergent paths in the shadow of recent central bank announcements. While the S&P 500 finds support at 4,650 and eyes resistance at 4,800, buoyed by dovish FOMC signals, China A50 remains subdued, breaking below its 11,142 October 2022 support as worries linger around real estate restructuring.

Meanwhile, the Straits Times Index surprised with a short-term momentum shift, breaking above its down trendline. We expect the index to retest its immediate resistance at 3,175, with further potential towards 3,258. However, our long-term view remains cautious due to bearish signals from the LT Cycle model.

In light of the evolving interest rate landscape, we see opportunities in interest-rate sensitive sectors and asset classes, particularly REITs and bonds. As central banks pivots from its rate hike policy, these assets stand to benefit from increased demand for income-generating investments.

Headlines for Week Ahead:
- US 3Q23 GDP, Nov PCE
- China loan prime rate fiixng

Disclaimers apply.

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