Daily Morning Note – 14 Oct 2019



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.


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


CapitaLand Commercial Trust

Recommended Action: Technical BUY

CapitaLand Commercial Trust (SGX:C61U) bullish sentiment is likely to extend further based on the technical.

Read more technical pulse


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.

Read more research reports

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

For more on Market Outlook

Phillip Research in 3 minutes: #14- Singapore Banking Sector

Updates summarised in 3 minutes

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