Brokerages Expect 25bp Fed Hike as Precautionary, See A-Share Risk Appetite Rebounding

TREE NEWS reports: Chinese brokerage strategy reports expect the Federal Reserve to raise interest rates by 25 basis points at this week’s meeting, characterizing the move as precautionary tightening that mainly disturbs market sentiment in the short term. Once the September FOMC meeting concludes and overseas uncertainty clears, A-share risk appetite is expected to recover and usher in a phase of improvement, the reports said, after the past week’s rangebound trading driven by Middle East tensions lifting oil prices and rising Fed hike expectations.