Daily Morning Note – 5 October 2018


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U.S. stocks tumbled on Thursday amid concerns about higher Treasury yields and tensions with China. Technology shares fell the most, with the Nasdaq 100 Index notching its worst day since June following a Bloomberg report that China infiltrated American companies with hardware hacks. Japan’s household spending unexpectedly jumped (+2.8%) in August from a year earlier to mark a second month of gains, suggesting a tight job market and steady economic expansion are boosting households’ purchasing power. Household spending makes up roughly 50 percent of Japan’s economic activity. Next to watch is data on U.S. monthly payrolls data which come out Friday, amid indications the labor market is also tightening.


Dow falls the most in 2 months on fears of rising rates as 10-year yield hits highest since 2011. Stocks fell sharply on Thursday as interest rates hit new multiyear highs, dampening investor sentiment. Job openings in the U.S exceeded the number of unemployed people by the most on record in July. The tally of part-timers who’d prefer a full-time position has fallen to a post-recession low of 4.4 million.

Chip Eng Seng halts trading after late Thursday rally draws query. The company’s stock spent most of Thursday lying in negative territory on thin volumes. But volume spiked after 4pm, and the share price climbed sharply before ending the day at 94.5 Singapore cents, with most of the gain of 5.6 per cent, or 5 Singapore cents, coming in the last hour of the trading session. A total of 8.9 million shares changed hands on Thursday.

Singapore Airlines and Air New Zealand’s joint venture alliance has received renewed approval from the New Zealand Ministry of Transport, the final step in enabling the two flag carriers to extend their alliance for a further five years until March 2024.

Big-ticket property deals fall 42% in Q3 after cooling measures. Property transactions of S$10 million and above across all sectors tumbled 42 per cent to S$6.5 billion in the third quarter from S$11.2 billion in Q2 – after the July property curbs put the brakes on residential collective sales.

A Joint Venture between CapitaLand and The Work Project, has acquired Collective Works’ co-working business for an undisclosed amount.

Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, Phillip Securities Research

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