Daily Morning Note – 14 Oct 2019
WEEKLY MARKET OUTLOOK WEBINAR
PHILLIP SUMMARY
Asian stocks looked set to start the week with gains. Signs of progress in U.S.-China trade negotiations lifted American equities Friday and sent Treasury yields higher, though sentiment may be capped as investors voiced skepticism on the accord. Equity futures pointed higher across Asia, but Japan will be shut for a holiday. The yuan edged down after Friday’s advance.
The pound retreated as European Union negotiators put another dent in Brexit optimism. Focus now turns to earnings season that begins with big U.S. banks including JPMorgan, Goldman Sachs and Morgan Stanley. Elsewhere, West Texas Intermediate crude gained 2.2% to $54.70 a barrel, and gold decreased 0.3% to $1,489.01 an ounce.
BREAKING NEWS
The Singapore economy may have narrowly avoided a technical recession in the third quarter, according to flash estimates from the Ministry of Trade and Industry (MTI). Singapore Q3 GDP up by 0.1% YoY.
The showing is still worse than expected – private-sector watchers had guided for growth of 0.2% in a Bloomberg poll and 0.3% in a Reuters poll.
The latest slump was again led by the ailing manufacturing sector, which may have lost 3.5% YoY, deepening from a revised 3.3% drop in the second quarter.
The Catalist-listed company Libra Group has received a letter of demand for US$18.8 million from UOB for outstanding banking facilities.
Bank of England Deputy Governor Dave Ramsden said he did not share the views of some of his colleagues who have suggested the British central bank might cut interest rates if the Brexit crisis drags on beyond the current Oct 31 deadline.
SoftBank Group Corp. has prepared a financing package for WeWork Companies Inc that would give it control over the shared office space company, the Wall Street Journal reported.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL PULSE
CapitaLand Commercial Trust
Recommended Action: Technical BUY
CapitaLand Commercial Trust (SGX:C61U) bullish sentiment is likely to extend further based on the technical.
RESEARCH REPORTS
China Strategy – Recovery starts from infrastructure
Analyst: Zheng Jieyuan
– China maintained a steady but suppressed growth rate in recent years; we expect an inflexion may happen soon.
– In 2018 and 2019, we observed that the China government urged its local government to speed up the bond issuance process to boost infrastructure investment.
– We are OVERWEIGHT on the China Infrastructure Sector mainly because of the recovering economy and enormous government investment in the sector.
Webinar Of The Week
Market Outlook: : (PSR) Singapore Exchange Limited, Singapore Banking Monthly, First REIT, US Weekly, Technical Analysis & Singapore weekly
Date: 07 October 2019
Phillip Research in 3 minutes: #14- Singapore Banking Sector
Updates summarised in 3 minutes
For more videos on Phillip in 3 Mins
| Disclaimer |
| The information contained in this email and/or its attachment(s) is provided to you for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. The information or opinions provided in this email do not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the e investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise. You may wish to seek advice from an independent financial adviser before making a commitment to purchase or investing in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein is suitable for you. PhillipCapital and any of its members will not, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached to this email. The information and/or materials provided “as is” without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials. |
| Confidentiality Note |
| This e-mail and its attachment(s) may contain privileged or confidential information, which is intended only for the use of the recipient(s) named above. If you have received this message in error, please notify the sender immediately and delete all copies of it. If you are not the intended recipient, you must not read, use, copy, store, disseminate and/or disclose to any person this email and any of its attachment(s). PhillipCapital and its members will not accept legal responsibility for the contents of this message. Thank you for your cooperation. |
