Singapore market trends Tuesday: NODX misses expectations, Russia summit draws criticism

Singapore 50 dollar bill

Singapore shares were faced poor sentiment on Tuesday, with a muddled lead from Wall Street and a miss on the city-state’s export data.

Non-oil domestic export (NODX) data for June missed expectations early on Tuesday, growing 1.1 percent on-year, compared with forecasts for 7.8 percent growth, the Business Times reported. That caused the Singapore dollar to strengthen.

In early trade, Japan’s Nikkei 225 index was up 0.32 percent; the market was closed on Monday for a holiday.

The Dow Jones Industrial Average rose 0.18 percent on Monday, while the S&P 500 slipped 0.10 percent and the Nasdaq shed 0.26 percent. Futures for the three indexes were nose higher early on Tuesday.

“Chinese GDP, retail sales, industrial production and investment data was generally shaken off as broadly in line with expectations,” Scotiabank said in a note early Monday U.S. time. “Earnings reports are continuing the generally upbeat tone that was set at the beginning of the earnings season last week but they are not materially affecting broad asset classes either.”

China’s Shanghai Composite ended Monday down 0.61 percent at 2814.04, while Hong Kong’s Hang Seng Index edged up 0.05 percent to close at 28,539.66.

Singapore’s Straits Times Index ended Monday down 0.85 percent at 3232.79; on Monday, July futures for the index were at 3221, while August futures were at 3189.

Trade war

The IMF warned on Monday that trade tensions were the greatest near-term risk to global economic growth.

U.S. President Trump’s trade war has created a large number of negative headlines in local U.S. newspapers, the Washington Post reported, with his tariff measures already scoring an own-goal by hurting a wide swathe of businesses and farmers.

Additionally, Trump’s performance at the Helsinki summit with Russian President Vladimir Putin has been criticized as handing Russia a diplomatic win on a silver platter. The U.S. president’s effusive acceptance of Russia’s denials of interference in the 2016 election, which amounted to siding with a foreign power over U.S. intelligence agencies, and his continued deriding of the investigation as a “witch hunt” have rattled even his supporters.

John O. Brennan, who was CIA director from 2013-17, took to Twitter to call Trump’s performance “nothing short of treasonous.”

 

Currencies

The dollar index, which measures the buck against a basket of currencies, was at 94.52 at 8:14 A.M. SGT, down from levels as high as 94.75 on early on Monday.

The 10-year U.S. Treasury note yield was at 2.863 percent at 8:25 A.M. SGT, of levels as high as 2.875 percent on Monday; bond prices move inversely to yields.

The dollar/yen was at 112.414 at 8:27 A.M. SGT after trading in a 112.09 to 112.564 range on Monday, when Japanese markets were closed, according to DZHI data.

The euro/dollar was at 1.1711 at 8:28 A.M. SGT, after trading in a 1.1674 to 1.1725 range on Monday, according to DZHI data.

The dollar/yuan was at 6.6865 at the close on Monday, broadly in line with Friday’s levels, according to DZHI data.

The Singapore dollar has strengthened, with the dollar/sing at 1.3623 at 8:41 A.M. SGT, after trading as high as 1.3662 on Monday, according to DZHI data. In the wake of the NODX data, the dollar/sing dropped as low as 1.3608, from levels around 1.3620 before the data.

Oil

Nymex WTI crude oil futures for August were flat at US$68.06 a barrel at 7:54 A.M. SGT, after dropping from levels above US$71 on Friday, while ICE Brent crude futures for September were down 4.63 percent at US$71.84 at 6:00 A.M. SGT, according to Bloomberg data.

That was after U.S. Treasury Secretary Steven Mnuchin said on Monday that the U.S. would consider waivers to Iran sanctions for countries which will require more time to taper their oil imports from Iran, walking back an earlier administration “no exemptions” policy, according to a Reuters report. But U.S. officials said exemptions wouldn’t be given to countries in the European Union, which Trump called a “foe” recently.

In May, the U.S. unilaterally violated the multilateral deal to remove sanctions on Iran in exchange for the Middle Eastern country ending its nuclear program.

Get Shenton Wire headlines in your inbox