Experts highlight the strong growth potential of Singapore’s banking and manufacturing sectors, with bond markets likely to see reduced volatility.

Despite a “hawkish” move by the US Federal Reserve, which led to a decline in Asian markets, including Singapore, on Thursday (Dec 19), analysts are maintaining an optimistic outlook for both Asian and Singaporean equities and bonds. The Federal Reserve’s cautious stance on interest rate cuts sparked some initial market volatility, yet experts are confident about the long-term performance of key sectors in Singapore, particularly banking and manufacturing.

Although the equity markets might experience short-term fluctuations, analysts suggest that these sectors will continue to show strong growth prospects. Furthermore, with a clearer trajectory for rate cuts expected in 2025, bond investors are likely to benefit from reduced volatility, as expectations for rate changes will stabilise.