Link REIT's 7% Yield Attracts as Fed Hike Saps Markets
SingTao · 1 SOURCESabout 2 hours ago2 MIN
Summary
After the US Federal Reserve raised interest rates last week, the Hang Seng Index fell as much as 356 points on Thursday before staging a 247-point intraday recovery to close 109 points lower . Market analysts view this muted decline as evidence investors were already pricing in the hike. Looking ahead, with the market expecting at least one more Fed rate increase before year-end, further volatility is anticipated as the next Federal Open Market Committee meeting approaches.
Key Points
- Hang Seng Index hit session low down 356 points Thursday, recovered to close 109 points lower; investors showed preparedness for Fed rate hike
- US-Iran tensions cited as major factor driving American inflation; Trump unlikely to criticize Fed Chair Wash over rate decisions
- November midterm elections create diplomatic pressure; Trump may seek Iran peace deal before election, with October Fed meeting as critical deadline
- Hong Kong's three note-issuing banks maintained prime lending rates unchanged; however, HIBOR continues rising, benefiting banks with strong deposit bases
- Link REIT (823) trades within HK$32-40 range, closed at HK$37.02 Friday, offering approximately 7% dividend yield
- AI stocks have declined 80-90% from their peaks, attracting new speculative interest but facing persistent selling pressure from trapped investors
Why It Matters
For Hong Kong investors navigating persistent US rate pressure, dividend stocks like Link REIT offer a reliable income stream in an otherwise volatile environment, while the outcome of US-Iran diplomatic talks could reshape global market sentiment ahead of October's Fed meeting .
For Hong Kong investors navigating persistent US rate pressure, dividend stocks like Link REIT offer a reliable income stream in an otherwise volatile environment, while the outcome of US-Iran diplomatic talks could reshape global market sentiment ahead of October's Fed meeting .