Investment Daily Note

The Fed raised interest rates for the first time in nearly a decade. The target range for the federal funds rate was raised from 0% to 0.25% to 0.25% to 0.50%. The Fed predicted that the interest rate at the end of next year to be 1.375%, and the market expects the interest rates to be raised by four times next year. However, the actual pace of rate hikes will depend on future economic data, according to the Fed. Interest rate hike reflects better economic prospects. As Hong Kong stock market has adjusted by a certain extent, there may be limited downside, which may support more optimistic view in the mid to long run.

According to the US Energy Information Administration (EIA) report, US crude oil inventories increased 4.8 million barrels unexpectedly last week. The market previously expected a reduction of 1.5 million barrels. Oil prices closed at their lowest level inmore than six years. Investors are advised to continue to avoid the oil related sectors.