Hong Kong stocks hunker down for a day packed with Fed decision, jumbo IPO debut

Both a US Fed rate policy meeting and the largest initial public offering in Hong Kong in seven years will occur on Thursday Hong Kong stocks are gearing up for an eventful day on Thursday, when both a rate decision by the US Federal Reserve and a debut of the city’s largest initial public offering (IPO) in seven years coincide to test investors’ risk appetite. Warsh, who took over the world’s biggest central bank in May, struck a hawkish tone in his first rate decision meeting last month, while also pledging to uphold the Fed’s independence in testimony before lawmakers. “For markets, the July meeting is therefore less about whether the Fed hikes this week and more about how close it believes the economy is to the tripwire,” said Stephen Innes, a managing partner at SPI Asset Management. “A hold accompanied by stronger language on inflation and geopolitical risk could still tighten financial conditions, particularly if Warsh refuses to push back against the market’s hawkish pricing.”

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