September 13, 2016
Rate Hike
Has anyone ever asked what is the benefit or great benefit on interest rate increase?
Sustaining the market, or global market erosion. Helping the industry, create more job? Or just doing a job.
My layman understanding, rate increase is to reduce the borrowing, slowing down the heat. Indirectly it will reduce expansion, and create less or cut job. In other words, we are oversize to certain extend.
All Asia Pacific Stock Markets Decline Monday September 12 2016
Monday, September 12 was public holiday for some Asia countries like, Malaysia, Indonesia, Philippines, and Singapore. These countries avoid the stock index decline.
The rest of the Asia Pacific countries all suffer a fall on the same day, Japan down 1.73%, Australia down 2.23%, Hong Kong down 3.36%, Shanghai down 1.85%, ShenZhen down 1.85%, and Korea down 2.28%. See Figure 1.
What a great trading day for all! Sell, sell, and sell.
Figure 1
The Story
Read the story from CNBC, Goldman slashes odds of Fed interest rate hike in September to 25 percent related to anticipating rate hike.
Have fun!
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