Singapore market trends Friday: US dollar tumbles amid hopes US trade war tensions may ease

Stock ticker at SGX building on Shenton Way; taken October 2018.Stock ticker at SGX building.

Singapore shares may open the last trading session of the week on a positive note amid positive leads from early Asian trading and Wall Street and after the dollar lost ground. Hopes for an easing of tensions in the U.S. trade war may also have provided a fillip.

“Global markets are in a constructive risk-on frame of mind,” Scotiabank said in a note on Thursday U.S. time. “This one’s a classic risk-on move across asset classes that is also marked by the U.S. dollar being on the retreat with sovereign yields moving slightly higher.”

Kathy Lien, managing director of foreign-exchange strategy at BK Asset Management, pointed to five reasons for the greenback’s tumble: weaker U.S. data, particularly a jump in layoffs, a fall in U.S. yields, a boost to risk appetite from the stock rally, hopes for a U.S. trade deal with China and profit-taking ahead of U.S. non-farm payrolls data due later Friday.

“Some investors got excited about President Trump’s comments on China – he said in tweet that he had a long and very good conversation with President Xi and plans to sit down with the Asian leader at the G-20. Xi is also willing to meet with Trump,” she said. “But investors shouldn’t let their hopes get carried away because shortly after Trump’s tweet, Chief Economic Advisor Kudlow said if no deal is reached, the president will act aggressively.”

Indexes

Japan’s Nikkei 225 was up 0.82 percent at 8:05 A.M. SGT, while South Korea’s Kospi was up 1.47 percent at 8:11 A.M. SGT.

Singapore’s Straits Times Index added 1.39 percent to 3060.85 by the close on Thursday; November futures for the index were at 3062 on Thursday, while December and January futures were at 3060 and 3062 respectively.

Hong Kong’s Hang Seng Index added 1.75 percent to 25,416.00 on Thursday, while China’s CSI 300 gained 0.74 percent to 3177.034.

Malaysia’s KLCI shed 0.14 percent to 1706.92 on Thursday, while Indonesia’s IDX Composite edged up 0.07 percent to 5835.92.

The Dow Jones Industrial Average ended Thursday up 1.06 percent at 25,380.74, the Nasdaq Composite increased 1.75 percent to 7434.057 and the S&P 500 gained 1.06 percent to 2740.37. Futures for the three indexes were slightly lower.

Currencies

The U.S. dollar index, which measures the greenback against a basket of currencies, was at 96.32 at 7:46 A.M. SGT, tumbling through Thursday’s session from levels as high as 97.17 on Wednesday, according to ICE futures data.

The 10-year U.S. Treasury note yield was at 3.137 percent at 7:57 A.M. SGT, falling from as high as 3.172 percent on Thursday, according to Tullett Prebon data.

The euro/dollar was at 1.1405 at 8:07 A.M. SGT after trading in a 1.1305 to 1.1424 range on Thursday, according to DZHI data.

The dollar/yen was at 112.791 at 8:07 A.M. SGT after trading in a 112.57 to 113.003 range on Thursday, according to DZHI data.

The dollar/yuan ended Thursday at 6.9204 after trading in a 6.9617 to 6.9762 range on Thursday, according to DZHI data.

The dollar/Singapore dollar was at 1.3764 at 8:08 A.M. SGT after trading in a 1.3752 to 1.3862 range on Thursday, according to DZHI data.

The dollar/Indonesian rupiah ended Thursday at 15,125 after trading in a 15,114 to 15,200 range, according to DZHI data.

The dollar/Malaysian ringgit was at 4.1710 at 8:03 A.M. SGT after trading in a 4.1760 to 4.1855 range on Thursday, according to DZHI data.

Oil

Nymex WTI crude oil futures for December were down 0.14 percent at US$63.60 a barrel at 7:40 A.M. SGT, while ICE Brent crude oil futures for January were off 2.87 percent at US$72.89 a barrel at 5:58 A.M. SGT, according to Bloomberg data.

 

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