Broker Name: OCBC Investment Research
Date of Report: 18 September 2025

Global Markets React to Fed Rate Cut: In-Depth Equity and Sector Analysis Across US, Asia, and Europe

Market Overview: Fed Cuts Rates, Global Markets Show Cautious Response

Global financial markets displayed muted reactions following the US Federal Reserve’s latest policy move—a widely expected interest rate cut. The S&P 500 edged down 0.1%, led by declines in technology stocks, while bond prices also slipped. The Fed’s decision to reduce the federal funds rate target range to 4%-4.25% marked a continued, gradual easing cycle. Policymakers projected two further quarter-point cuts this year, with a slightly improved growth outlook for 2026 and expectations of modestly higher inflation in the near term.
Key highlights from the US market:
Fed Chair Jerome Powell reiterated a “meeting-by-meeting” strategy, emphasizing labor market cooling and ongoing price risks.
The US dollar rose for a seventh consecutive Fed announcement, its longest streak since 2001.
China’s internet regulator ordered companies like Alibaba and ByteDance to halt orders for Nvidia’s RTX Pro 6000D chips, drawing criticism from US policymakers.
Apple reported a 6% year-on-year drop in China smartphone sales ahead of the iPhone 17 launch.
Reddit initiated early talks with Google to renegotiate its content-sharing deal, aiming to capitalize on AI and search demand.
In Europe, the Stoxx Europe 600 Index closed unchanged, with tech and retail gains offset by losses in energy and mining. European chip equipment makers like ASML drew investor attention as China’s Semiconductor Manufacturing International Corp. began domestic trials of advanced chipmaking tools.
Asian equities held recent highs, with gains in Chinese and Hong Kong markets balancing losses in South Korea and Taiwan. The MSCI Asia Pacific Index closed flat after a record high, with Chinese tech giants Alibaba, Tencent, and Baidu leading the rally amid AI optimism and supportive government policies. JD.com surged on news its chairman would avoid aggressive pricing in the hotel sector. Chinese financials, coal producers, travel firms, and humanoid robot stocks also benefited from favorable policy developments.

Singapore Market and World Indices: Key Statistics

Forex and Commodities Snapshot

Company Focus: In-Depth Equity Research and Outlook

Techtronic Industries Co Ltd (669 HK): Mid-Term Growth Intact Despite Near-Term Headwinds

TTI’s share price is down ~2% YTD, underperforming the Hang Seng Index, which is up 34% YTD, amid macroeconomic weakness and tariff risks.
1H25 results were robust: Revenue rose 7.1% YoY to USD7.8 billion, net profit up 14.2% YoY to USD628 million.
2H25 sales growth may slow due to tariff uncertainties. Milwaukee has already suspended some SKU shipments to the US.
From FY26, growth is expected to accelerate as supply chain relocations finish and tariffs stabilize.
Milwaukee targets double-digit YoY growth; Ryobi aims for mid-single-digit YoY growth.
Focused on mega projects, data centers, infrastructure, renewable energy, and product innovation for worker productivity and safety.
EBIT margin targeted to reach ~10% by FY27.
Anticipated Fed rate cuts could boost demand for power tools by stimulating construction and housing.
Fair value estimate raised from HKD136 to HKD139.
ESG Update:
TTI’s ESG rating was upgraded in August 2025 due to improved corporate governance. No directors received over 10% negative votes at the 2025 AGM.
Leads global peers in cleantech but lags in staff management.
Business ethics and governance rated as average.

Golden Agri-Resources (GGR SP): CPO Price Momentum Supports Earnings

CPO price ended August 2025 at MYR4,308/mt, up ~3% MoM on tight supply, resilient demand, and high substitute oil prices.
Indonesia’s CPO consumption rose 6.9% YoY in 1H25 to 12.3m tonnes, driven by a 14.3% YoY surge in biodiesel uptake under the B40 mandate.
Improved supply from Malaysia and Indonesia could cap further CPO price upside.
Bloomberg expects CPO price to rise to MYR4,453/mt in 4Q25, then ease to MYR4,294/mt in 2026.
GAR’s 1H25 results benefited from stronger plantation output and CPO price, with upstream growth driven by weather improvements and higher-yielding plantations.
2H25 FFB production may soften due to aggressive replanting and dry weather, but earnings remain supported by CPO price strength.
Fair value estimate raised from SGD0.27 to SGD0.30 (based on 0.55x P/B for FY26).
ESG Update:
ESG rating unchanged since April 2025.
Continued strengthening of supply chain oversight via satellite monitoring.
Lags peers in carbon emissions management (no reduction targets) and water usage management.
Lower ranking on governance and social issues.

Comprehensive Table: STI Stocks by Market Capitalisation

Latest Analyst Recommendations: Key Reports at a Glance

Conclusion: Investor Focus Shifts to Earnings and Inflation Data

As global markets digest the Fed’s tempered monetary stance and monitor geopolitical and policy-driven sector movements, investor attention remains on upcoming inflation prints and corporate earnings results. The outlook for key equities such as Techtronic Industries and Golden Agri-Resources is shaped by both macroeconomic and sector-specific factors, including supply chain adjustments, tariff impacts, commodity pricing, and ESG progress. Meanwhile, the broad market’s cautious tone underscores the importance of agile portfolio positioning in an evolving landscape.
Disclaimer: This article is for informational purposes only and does not constitute a recommendation to buy or sell any securities. Please consult a financial adviser for personalized advice.