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The SGX Nifty lost over 150 points amid fears of a sharp increase in interest rates ahead of the US Federal Reserve

Fears of a sharp increase in interest rates ahead of the US Fed have worsened the mood of global markets. The Dow Jones has slipped more than 500 points. A sharp decline has been seen in Asia in the morning. SGX Nifty is also trading down about 150 points.

The US market has rolled over the Fed's decision to raise rates. On Wednesday, the US market closed with a sharp fall. The S&P was down 2.5% and the DOW was down by more than 1.5%. The NASDAQ closed down 3.36% at 10524. The US Fed raised rates by 0.75% for the fourth time in a row.

If we look at the movement of the US market, then 74% of the shares in S&P may see a fall. 57% of the shares are trading below the 200 DMA. Global container demand declined. Maersk has cut container demand estimates. Demand may fall by 4% this year due to economic slowdown. The container spot rate has come down. Outside Shanghai it declined from $5000 to $1697. The world's largest Foxconn iPhone factory has closed. The iPhone factory has been closed due to Covid.

Rates hiked again in America

The Federal Reserve has announced an interest rate hike of 75 basis points, or 0.75 percent, for the fourth time in a row. However, it was a matter of relief that the US regulator signaled the end of its aggressive efforts to contain inflation. According to a statement by the Federal Open Market Committee in Washington on Wednesday, the US Fed said that with "current hikes" rates will reach a level that will "bring inflation down to 2 per cent over time". will be enough for

With the Federal Reserve increasing its benchmark interest rate, it also indicated that it may soon reduce its rate hike figures. With this hike, the US Fed raised its benchmark federal funds rate from 3.75% to 4%, its highest level in 15 years since 2008. This is the sixth rate hike by the central bank this year.

Meanwhile, trading is being seen with a decline in Asian markets today. SGX NIFTY is showing a decline of 167.00 points. At the same time, Nikkei is seen falling by about 0.06 percent around 27,663.39. At the same time, Strait Times is showing a weakness of 1.26 percent. Taiwan's market is trading at a level of 12,971.52 with a fall of 0.98 percent. Whereas Hang Seng is down 2.26 percent at the level of 15,468.94. At the same time, Kospi is trading with a fall of 0.61 percent. On the other hand, Shanghai Composite is down 0.22 percent at 2,996.75 level.

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