The start of a rate-increase cycle is usually negative for equity markets. At the start of the two rate-hike cycles in the 1990s (February 1994 and June 1999), US and European stock markets declined to the tune of 5-10 per cent within one or two months of increases. Emerging markets, including the Stock Exchange of Thailand, experienced much worse declines, falling 10-30 per cent in a few months after the Fed decided to raise interest rates.