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
-
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