Asian investors assess ‘higher for longer’ borrowing costs in developed markets

A postponement of the US Federal Reserve interest rate cuts could see some defensive plays by investors, such as range-bound trading.

World stock markets have climbed higher this year after investors bet on several interest rate cuts by developed market central banks. Prospects of easing financial costs have benefited risky assets, but with inflationary pressure still persistent in the US economy, the Federal Reserve is reevaluating its inflation assessment, reversing early stock gains and injecting volatility across asset classes.

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