Via a client note (from late last week) MS on the Federal Open Market Committee (FOMC):

Say that conditions in financial markets have significantly tightened (since Sep)

  • 'tightening of financial conditions since the September FOMC equates to about 40bp in fed funds equivalent terms'
  • this could chop off around 0.2% from FOMC 12 month growth forecast (median)
  • expects dots to be lower
  • expect Fed hikes in December 2018 then March and June 2019

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Also, separately from different analysts at the bank:

  • they boost China stocks to overweight

Forecasts China to rise 9% (MSCI China) be the end of next year

  • HK to rise 13% (also by end of 2019)

MS were +4% and +8% respectively previously