Global markets may have heaved a sigh of relief after this weekend’s G-20 meeting in Japan, but the trade-war hostilities likely won’t end anytime soon.
Economy and Trade
Singapore banks are seeing rising credit demand from trade-related sectors, suggesting Southeast Asia is benefiting from the trade war, Maybank KE said Monday.
“Fighting won’t stop you from eating,” the brokerage said in a note Friday.
Small-to-medium sized enterprises (SMEs) are likely to benefit from Singapore’s move to allow digital banks into the market, DBS said in a note Monday.
The Monetary Authority of Singapore said Friday it would issue up to five new digital bank licences, opening the banking sector to non-bank players.
Investors should be watching the earnings impact of the trade war, Steven Wieting, chief investment strategist at Citi Private Bank, said Tuesday.
Huawei may be under fire from U.S. trade restrictions, but so far, Konesh Kochhal, a director at the company, said the carrier business wasn’t affected.
These are Singapore companies which may be in focus Wednesday, 19 June 2019: BofA-ML fund manager survey, Sembcorp Industries, SGX, CapitaLand and Hyflux.
Global fund managers are at their most pessimistic since the Global Financial Crisis amid trade war concerns, the BofA-ML survey for June found.
U.S.-China trade tensions may be knocking market sentiment, but despite the risks, CapitaLand Retail China Trust has added to its China mall portfolio.
These are Singapore companies which may be in focus on Tuesday, 11 June 2019: CapitaLand, CRCT, SGX, Kingsmen Creatives, Ascendas REIT and Accordia Golf.
The U.S.-China trade war spurred a surge in derivatives trading in May, with total derivatives traded volume jumping 46 percent on-year, SGX said Monday.
Singapore isn’t expecting the trade tensions between the U.S. and China to be resolved anytime soon.
India’s newly re-elected Prime Minister Modi has plans to boost private-sector exports, eschewing the country’s traditional focus on domestic consumption.
These are Singapore companies which may be in focus on Thursday, 23 May 2019: UOL, PSA, Yongnam, Sabana REIT and Stamford Land.
CGS-CIMB downgraded Singapore’s bank sector to Neutral from Overweight, on expectations of “harder days ahead” for UOB, OCBC and DBS.
Singapore’s MTI lowered its economic growth forecast for the city-state to 1.5 percent to 2.5 percent for 2019, from 1.5 percent to 3.5 percent previously.
Singapore’s April NODX dropped 10.1% on-year on a high base a year earlier, with declines in both electronic and non-electronic exports, data showed Friday.
The U.S. trade war with China may have dented a broad swathe of sectors, but it’s given China’s property market a big fillip.
These are Singapore companies which may be in focus on Thursday, 16 May 2019: UOB, Singapore Airlines, OCBC, Hyflux, UOL and Ezion.
UOB expects to benefit from U.S.-Sino trade tensions, with companies set to diversify their supply chains into Southeast Asia, the bank said Wednesday.
More than a third of fund managers have taken out hedges to protect against a sharp market fall over the next three months, the May BofA-ML fund manager survey found.
These are Singapore companies which may be in focus Friday, 10 May 2019: Genting Singapore, SGX, SATS, OUE Commercial REIT and Ascendas Hospitality Trust.
Port operator PSA and SATS said Thursday they signed a deal Thursday to provide cargo owners and logistics service providers sea-air connectivity.
DBS CEO Piyush Gupta said Monday the major risk for the bank would be a “steep collapse” in interest rates.
UOB, SGX and the China Chamber of International Commerce said Sunday they signed a deal to help Chinese firms use Singapore as a base for expanding into Southeast Asia.
Morgan Stanley said the quick election victory of Indonesia’s incumbent President Widodo set the stage for the continuation of structural reform policies.
Global fund managers turned slightly less bearish in their economic outlook, spurring additions to their equity allocations, BofA-ML’s April survey found.
The Monetary Authority of Singapore, kept policy unchanged Friday and lowered its inflation forecast, pointing to slowing economic growth in the city-state.
Singapore’s 1Q19 GDP growth slowed to 1.3% on-year, from 1.9% in 4Q18, off a high base of 4.7% growth in 1Q18, according to preliminary data Friday.
Analysts differ on whether markets need to see a full-enchilada trade deal between the U.S. and China to prevent a repeat of the fourth quarter’s selloff.
Markets may have recovered from their fourth quarter ructions, but DBS is advising adding more gold to portfolios to stave off the effects of continued volatility.
These are Singapore companies which may be in focus on Monday, 1 April 2019: Swiber, SIA Engineering, Hyflux, Singapore Airlines and CapitaLand.
The yield curve inversion in the U.S. may have set off a fresh round of market jitters, but Eric Rosengren, president of the U.S. Federal Reserve Bank of Boston, said on Tuesday that it’s no longer a reliable recession signal.
The inversion of the U.S. yield curve may have convinced many market participants that the sky is falling, or at least, a recession is looming, but at least two central bankers are unimpressed.
The disruptions and uncertainty central bankers have been dealing with over the past few years have one root cause, said Yellen on Monday.
Former Federal Reserve chief Janet Yellen said on Monday that global central banks don’t have enough bullets in their policy guns to deal with a crisis.
PSA International, the Polish Development Fund and IFM Global Infrastructure Fund have tied up to acquire Poland’s largest container terminal.
Global fund managers turned even more skittish on equities in March, but were a bit less bearish on the economy, a Bank of America-ML survey showed.
Singapore’s February NODX rose 4.9%, swinging from January’s 10.1% fall, on a pickup in non-electronics exports, according Enterprise Singapore data Monday.