Singapore market trends Thursday: Wall Street rally may be priced in

Singapore CBDSingapore CBD

Singapore shares will face Thursday with a positive lead from Wall Street, but it wasn’t clear if the gains were already priced in by the advance in the city-state’s market on Wednesday.

In addition, strong jobs data in the U.S. may spook traders as it could signal higher wages and inflation and a U.S. Federal Reserve that becomes more resolute about tightening policy.

“The last trading day in October was a not so scary day for the financial markets,” Kathy Lien, managing director of foreign-exchange strategy at BK Asset Management, said in a note on Tuesday U.S. time.

“October was a very strong month for the greenback, but as the end of the year starts to near, the dollar is vulnerable to a correction. We are still looking for the greenback to trade higher on non-farm payrolls, especially after today’s larger-than-expected increase in ADP but other parts of the economy are reporting weakness,” she said. She pointed to declining mortgage approvals and slower manufacturing-activity expansion in the New York region.

Another potential fillip for the market: Bloomberg reported that China is signaling it plans further economic stimulus measures after disappointing economic data.

Indexes

Japan’s Nikkei 225 index was down 0.26 percent at 8:11 A.M. SGT, while South Korea’s Kospi was up 0.68 percent at 8:16 A.M. SGT.

Singapore’s Straits Times Index ended up 1.77 percent at 3018.80 on Wednesday; November futures were at 3021 on Wednesday while December and January futures were at 3018 and 3020 respectively.

Hong Kong’s Hang Seng Index tacked on 1.60 percent to 24,979.689 on Wednesday, while China’s CSI 300 rose 1.40 percent to 3153.823.

Malaysia’s KLCI ended up 1.38 percent at 1709.27, while Indonesia’s IDX Composite gained 0.73 percent to 5831.65.

The Dow Jones Industrial Average rose 0.97 percent to 25,115.76, the Nasdaq Composite added 2.01 percent to 7305.899, and the S&P 500 rose 1.09 percent to 2711.74. Futures for the three indexes had their noses in the green in early trade.

Currencies

The U.S. dollar index, which measures the greenback against a basket of currencies, was at 97.11 at 8:01 A.M. SGT, after dipping as low as 96.89 during the session on Wednesday, according to ICE futures data.

The 10-year U.S. Treasury note yield was at 3.151 percent at 8:11 A.M. SGT, near highs touched in Wednesday’s session, according to Tullett Prebon data.

The euro/dollar was at 1.1316 at 8:14 A.M. SGT after trading in a 1.1300 to 1.1360 range on Wednesday, according to DZHI data.

The dollar/yen was at 112.841 at 8:14 A.M. SGT after trading in a 112.77 to 113.385 range on Wednesday, according to DZHI data.

The dollar/yuan ended Wednesday at 6.9736 after trading in a 6.9617 to 6.9762 range on Wednesday, according to DZHI data.

The dollar/Singapore dollar was at 1.3854 at 8:14 A.M. SGT after trading in a 1.3840 to 1.3872 range on Wednesday, according to DZHI data.

The dollar/Malaysian ringgit was at 4.1830 at 8:11 A.M. SGT after trading in a 4.1800 to 4.1840 range on Wednesday, according to DZHI data.

The dollar/Indonesian rupiah ended Wednesday at 15,200 after trading in a 15,195 to 15,231 range on Wednesday, according to DZHI data.

Oil

Nymex WTI crude oil futures for December were down 0.47 percent at US$65.00 a barrel at 7:49 A.M. SGT, while ICE Brent crude oil futures for December were off by 0.58 percent at US$75.47 at 2:29 A.M. SGT, according to Bloomberg data.

Read more: Crude weaker ahead of Asian open on Thursday after EIA figures

 

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