DBS Bank: The market may have overestimated the Fed, and a 25 basis point rate cut is more likely

Carie Li, global strategist at DBS Bank Hong Kong Ltd. in Hong Kong, said there is a risk that the market may overestimate the Fed's rate cut. Therefore, global stock markets may trade in a range with some adjustments. A 25 basis point rate cut is more likely. There is another risk that the market is a bit like self-reinforcement. When companies start to worry about the economic outlook, they will start to increase layoffs, making consumers feel that the labor market outlook has become worrying, so they will reduce spending, which will accelerate the economic slowdown. (Jinshi)