Taiwan stocks set to bounce Monday as US markets rally
Taiwan's market is expected to rebound Monday after a strong US session, but the week ahead looks choppy for investors.
- US stocks jumped Friday after inflation came in as expected, with chip stocks leading the way.
- Taiwan shares fell hard Thursday as foreign investors dumped more than NT$100 billion of stock.
- Inflation is still running near 3.4% in the US, so the Fed is widely expected to raise rates at next week's meeting.
- Oil near $100 a barrel, driven by the US-Iran conflict choking supply, is keeping price pressure high and pushing bond yields up.
- Taiwan's own central bank meets on the 17th, with attention on whether it raises rates and whether it loosens its strict property lending limits.
Outlook: Expect a bounce to start the week, then sharp swings as the Fed decision, futures settlement, and oil prices collide.