SENTIMENT IMPROVING, BUT WATCH FOR POLITICAL RISK

Global stock markets have rebounded as the market predicts an 80% likelihood the US Federal Reserve will cut interest rates at its Dec 9-10 meeting, up from less than 40% earlier.

- MAYBANK SECURITIES THAILAND

A productive phone call between US President Donald Trump and Chinese President Xi Jinping, and an expected face-to-face meeting in Beijing in April 2026, also eased global concerns over tariffs and geopolitics.

Furthermore, the market expects Kevin Hassett, a Trump advisor and likely candidate to succeed Fed chair Jerome Powell next May, could push for more aggressive rate cuts.

The S&P 500, after a short-term correction of roughly 5%, has begun to recover and rose past 6,800 points due to easing concerns over the high valuations of technology and artificial intelligence (AI) stocks, as well as clarity on the interest rate outlook.

We expect the index to retest its all-time high of 6,900 before the Fed meeting this week. We also reiterate our overweight rating on US, Chinese and Indian stock markets.

ASEAN MARKETS

Southeast Asian equity markets saw a tug-of-war between buoyant global monetary expectations and severe regional headwinds. Broadly, the region benefited from renewed “risk-on” sentiment globally.