MARKET OUTLOOK
Stocks jumped on Monday as investors awaited the US Federal Reserve’s policy meeting this week.
The Fed watch, US-China trade news kept the market cautiously at bay this week as investors carefully bought into selective names.
The index alongside other Asian markets pulled ahead on the growing speculation that the US Federal Reserve will sound dovish at its policy meeting this week.
Analysts expect the US Federal Reserve to cut their interest rate forecasts this year, which means little to no further tightening in 2019. The US central bank’s two-day policy meeting will start on March 19.
The Fed’s policy meeting will be followed by the central bank’s Monetary Board’s own review on Thursday.
A poll showed 10 of 13 economists predicting that the Monetary Board will keep benchmark interest rates steady on Thursday as headline inflation has been declining in the previous months.
Seeing as the index closed near the 7,900 resistance level, it may bounce off and edge lower on today.
However, a break above 7,900 is bullish and may give investors some optimism. Trading volumes are still below average.
Meanwhile, Wall Street closed higher overnight, as investors eyed this week's US Federal Reserve meeting for affirmation of its commitment to "patient" monetary policy.
There's always trepidation going into a Fed meeting. Anything that gives visibility to the potential for future rate hikes is going to keep people on the sidelines.
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