Support for upside in equities and ringgit seen

Nervous investors sold off on the local exchange yesterday, leading the FBM KLCI to close 13.89 points lower at 1,485.5.

PETALING JAYA: Revived appetite for risk assets amid expectations of the US Federal Reserve (Fed) downsizing the magnitude of its rate rises should support the upside in equities and the ringgit in the short to medium term, MIDF Research says.

Market expectation is for the Federal Open Market Committee (FOMC) meeting today to result in a smaller hike in the benchmark federal fund rate by 25 basis points (bps) after the 50-bps hike last December, as data reveals inflationary pressures are subsiding in the American economy.