Singapore market trends Tuesday: Wall Street tumbles amid concerns over Apple sales

Sculpture by Jimmie Durham, titled ‘Still Life with Spirit and Xitle,’ made of car, volcanic stone and acrylic paint at the Hirshorn museum in Washington, DC. Photo taken July 2018.Sculpture by Jimmie Durham, titled ‘Still Life with Spirit and Xitle,’ made of car, volcanic stone and acrylic paint at the Hirshorn museum in Washington, DC.

Singapore shares face a slew of negative leads on Tuesday, with Wall Street tumbling on Monday amid concerns about Apple’s iPhone sales and the greenback extending its declines.

The U.S. dollar continued to lose ground on Monday.

“Fundamentally, there’s not much on the U.S. calendar this week and it seems like any weakness in second-tier reports is being used as an excuse to continue selling dollars. Today, the NAHB housing market index failed to rebound like economists anticipated and this was enough to send the dollar spiraling lower,” Kathy Lien, managing director of foreign-exchange strategy for BK Asset Management, said in a note on Monday, U.S. time.

Tech shares took a tumble in the U.S. on Monday, with Apple hit especially hard after a Wall Street Journal report, citing people familiar with the situation, that it is seeing lower-than-expected iPhone demand after its decision to offer more models.

In addition, jitters over the U.S. trade war with China ramped up again after U.S. Vice President Pence said on Saturday that the U.S. won’t back down and could more than double its tariffs unless China submits. The South China Morning Post also reported, citing a source briefed on the matter, that the U.S. and China trade negotiation teams would meet in Buenos Aires instead of Washington, D.C., suggesting more weighty matters are on the agenda.

Indexes

Japan’s Nikkei 225 index was down 0.96 percent at 8:18 A.M. SGT, while South Korea’s Kospi was off 0.63 percent at 8:23 A.M. SGT.

Singapore’s Straits Times Index ended Monday down 0.60 percent at 3065.07; November futures for the index were at 3065 on Monday, while December and January futures were at 3063 and 3065 respectively.

Hong Kong’s Hang Seng Index was up 0.72 percent at 26,372.00 at Monday’s close, while the CSI 300 was up 1.13 percent at 3294.603.

Malaysia’s KLCI ended Monday up 0.25 percent at 1710.71, while Indonesia’s IDX Composite shed 0.12 percent to 6005.30.

The Dow Jones Industrial Average lost 1.56 percent on Monday to 25,017.44, the Nasdaq Composite dropped 3.03 percent to 7028.477 and the S&P 500 shed 1.66 percent to 2690.73. Futures for the three indexes were slightly lower in early trade.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of currencies, was at 96.17 at 7:05 A.M. SGT, off levels as high as 96.57 in Monday’s session and levels over 97 on Friday, according to ICE futures data.

The 10-year U.S. Treasury note yield was at 3.069 percent at 7:39 A.M. SGT, off levels as high as 3.090 percent in Monday’s session and levels as high as 3.121 percent on Friday and 3.238 percent earlier in November, according to Tullett Prebon data.

The euro/dollar was at 1.1456 at 8:03 A.M. SGT after trading in a 1.1393 to 1.1465 range on Monday, up from levels as low as 1.1218 earlier in November, according to DZHI data.

The British pound/dollar was at 1.2849 at 8:12 A.M. SGT after trading in a 1.2794 to 1.2884 range on Monday, according to DZHI data. That was off a low of 1.2694 touched on 30 October, the data show.

The dollar/yen was at 112.454 at 8:03 A.M. SGT after trading in a 112.39 to 112.875 range on Monday, and off levels as high at 114.214 earlier this month, according to DZHI data.

The dollar/yuan was closed Monday at 6.9397 after trading in a 6.9324 to 6.9449 range during the session, according to DZHI data.

The dollar/Singapore dollar was at 1.3713 at 8:04 A.M. SGT after trading in a 1.3705 to 1.3743 range on Monday, off levels as high as 1.3862 earlier this month, according to DZHI data.

The dollar/Malaysian ringgit was at 4.1870 at Monday’s close after trading in 4.1810 to 4.1910 range during the session, according to DZHI data.

The dollar/Indonesian rupiah was at 14,580 at Monday’s close after trading in a 14,515 to 14,649 range during the session, according to DZHI data.

Oil

Nymex WTI crude oil futures for January were up 0.53 percent at US$56.76 a barrel at 3:29 A.M. SGT, while ICE Brent crude oil futures for January were up 0.04 percent at US$66.79 a barrel at 6:59 A.M. SGT, according to Bloomberg data.

WTI had traded at levels above US$76 in October, while Brent had touched levels about US$86, the data show.

“Oil’s collapse this month would be much more worrying if it were driven by demand weakness not yet detected in monthly activity data. The decline looks much more supply-driven, however,” JPMorgan said in a note on Friday.

The investment bank said that oil had been fairly valued in June, with WTI around US$65 and Brent around US$75, but then prices overshot higher by around 20 percent.

“The driver was an Iran premium, which could have tightened markets materially this quarter had the U.S. implemented tight sanctions rather than granted generous waivers. But that’s post-script,” it said. “The prologue is that crude prices are bottoming because U.S. sanctions should be tightened eventually if they are to have impact; OPEC and Russia seem committed (again) to output restraint; prices have returned to fair value.”

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