LIVE MARKETS Rate hiking cycle perks – Reuters

LIVE MARKETS Rate hiking cycle perks – Reuters

  • Tech sector rebounds, up over 2%
  • Sinch shines, up 8.5%
  • STOXX 600 rises 1%
  • Wall Street futures bounce back

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There’s obviously a lot of angst surrounding the rate hiking cycle the Fed seems about to embark on in March but it’s really not necessarily bad news for equities.

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“An analysis of the last five hiking cycles by the Fed reveals that the S&P 500 rose every single time in the 12 months that followed the initial rate hike”, writes Guilhem Savry, head of macro and dynamic allocation at Unigestion.

“On average, the index rose by 7.6% a year after the Fed first pulled the trigger”, he adds, which might reassure those investors looking at the S&P 500’s 2% drop since the beginning of the year.

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