Singapore market trends Wednesday: Wall Street rallies amid strong economic data

SGX ticker at Shenton Way building in Singapore; taken October 2018.SGX ticker at Shenton Way building in Singapore; taken October 2018.

Singapore’s shares may get a fillip on Wednesday after a strong rally on Wall Street on Tuesday helped to erase some of recent selloff.

U.S. markets got a boost on Tuesday from U.S. consumer confidence rising to an 18-year high in October, although a weaker housing market and tighter financial conditions weighed, Reuters reported.

“Net, net, the consumer is clearly elated and brimming with the highest confidence reading in 18 years, and they are putting their money where there mouths are by buying up a storm of goods and services in the third quarter that helps make the economy go,” Chris Rupkey, chief financial economist at MUFG, said in a note on Tuesday U.S. time.

But he added, “We don’t know how long this is going to hold up.”

He noted that people under the age of 35 were less confident, with the optimism getting a fillip from people making more than US$125,000 a year.

Indexes

Japan’s Nikkei 225 index opened up 0.66 percent on Wednesday, while South Korea’s Kospi slipped 0.28 percent.

Singapore’s Straits Times Index ended Tuesday down 0.51 percent at 2966.45; November futures for the index were at 2968 on Tuesday, while December futures were at 2965 and March futures were at 2964.

Hong Kong’s Hang Seng Index fell 0.91 percent to 24,585.529 on Tuesday, while China’s CSI 300 rose 1.09 percent to 3110.26.

Malaysia’s KLCI edged up 0.13 percent to 1685.94 on Tuesday, while Indonesia’s IDX Composite index added 0.60 percent to 5789.10.

The Dow Jones Industrial Average tacked on 1.77 percent to 24,874.64, the Nasdaq Composite rose 1.58 percent to 7161.65 and the S&P 500 increased 1.57 percent to 2682.63. Futures for the three indexes had their nose in the green on Wednesday.

Currencies

The U.S. dollar index was at 97.00 at 8:21 A.M. EDT after climbing steadily from as low as 96.65 early in Tuesday’s session, according to ICE futures data.

The 10-year U.S. Treasury note yield was at 3.127 percent at 8:33 A.M. SGT, climbing from as low as 3.097 percent in the middle of Tuesday’s session, according to Tullett Prebon data.

Dollar rallies

“Stronger-than-expected consumer confidence helped sustain the greenback’s gains but the bulk of rally occurred well before the data was released. Instead, it was the uptick in U.S. bond yields, softer Eurozone data and Bank of England concerns that prevented the euro, the British pound and the Japanese yen from rallying,” Kathy Lien, managing director of foreign-exchange strategy for BK Asset Management, said in a note on Tuesday U.S. time.

The euro/dollar was at 1.1343 at 8:34 A.M. SGT after trading in a 1.1337 to 1.1388 range on Tuesday, according to DZHI data.

The dollar/yen was at 113.112 at 8:34 A.M. SGT after trading in a 112.27 to 113.171 range on Tuesday, according to DZHI data.

The dollar/yuan ended Tuesday at 6.9662 after trading in a 6.9582 to 6.9710 range on Tuesday, according to DZHI data.

The dollar/Singapore dollar was at 1.3857 at 8:35 A.M. after trading in a 1.3818 to 1.3852 range on Tuesday, according to DZHI data.

The dollar/Indonesian rupiah ended Tuesday at 15,222 after trading in a 15,200 to 15,240 range on Tuesday, according to DZHI data.

The dollar/Malaysian ringgit ended Tuesday at 4.18 after trading in a 4.1700 to 4.1795 range on Tuesday, according to DZHI data.

Oil

Nymex WTI crude oil futures for December were up 0.47 percent at US$66.49 a barrel at 8:02 A.M. SGT, while ICE Brent crude futures for December were down 1.85 percent at US$75.91 a barrel at 5:50 A.M. SGT, according to Bloomberg data.

Read more: API estimates weigh on crude Wednesday ahead of Asian open

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