Market Update 10 October 2016 October 10, 2016

U.S. Events

The events to take note this week will be the U.S. Federal Reserve’s release of its September policy meeting on Wednesday, 2pm (Singapore time, Thursday, 2am).

The Fed has policy meetings scheduled in early November and mid-December. It is widely expected that the Fed policymakers will avoid a rate hike before the U.S. presidential election on 8th of November.

Elsewhere, after 2 rounds of presidential debate and a 2005 recording of Mr Donald J. Trump’s vulgar remarks on women, Ms Hillary Clinton appears to be taking the lead in the online presidential poll by The New York Times.

Source: http://www.nytimes.com/interactive/2016/us/elections/polls.html

Source: http://www.nytimes.com/interactive/2016/us/elections/polls.html

Oil market

As mentioned in the previous market update on 19/09/2016, crude oil price rallied on the news of a tentative deal by OPEC to reduce output. The exact production level for each OPEC member country will be discussed at its 30th November meeting in Vienna. This will be the first oil output cut in 8 years.

WTI Crude oil price reaches USD $ 50.44 per barrel on Thursday, 06/10/2016.

On Sunday, 09/10/2016, Iraq (the country with the 5th largest proven oil reserves)’s oil minister, Jabar Ali al-Luaibi urged the oil and natural gas producers in the country to continue increasing production for the rest of the year and in 2017.

Considering that the output reduction is not fixed until November, Luaibi’s remark and the strong resistance level at USD $50 range, investors may want to consider taking profit if they have taken a long position earlier.

UCO pricing chart:

Source: POEMS 2.0 platform

Source: POEMS 2.0 platform

Singapore Market

Last week, STI index traded in between 2861.95 and 2901.73 points in a low volume week. STI closed 2875.24, up 5.77 points or 0.2%.

However, there is a bright spark in the Singapore market this these 2 weeks with the upcoming launch of the Phillip SGX APAC ex-Japan REIT ETF.

The investment objective of the fund is to seek to provide a high level of income and moderate long-term capital appreciation by tracking the performance of SGX APAC Ex-Japan Dividend Leaders REIT index. Indicative yield is at 5.19%. You may wish to contact your trading representatives to find out more about this ETF!

Click here to find out more

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About the author

Chong Kai Xiang (Kai)
POEMS Dealer
Raffles City Dealing Team

Chong Kai Xiang (Kai) is an Equities Dealer in the Raffles City Dealing Team, and currently provides dealing services to over 35,000 trading accounts.

Kai frequently conducts seminars to enrich his client’s trading and financial knowledge. Apart from this, Kai also provides weekly market updates to his clients to keep them informed and up to date on their stock holdings.

Kai holds a Bachelor Degree of Finance from the SIM University – UniSIM and was awarded the CFA Singapore Gold Award and CFP® Certification Achievement Award in 2015.