Daily Morning Note – 16 August 2018

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YOUR PHILLIP SUMMARY

U.S. stocks fell on Wednesday as declines in tech shares and Macy’s dampened investor sentiment. Equities also followed overseas stocks lower. The major indexes trimmed losses late in the day after CNBC reported that the White House is preparing to expand rules favoring American products in government projects.

Tech, the largest sector by weight in the S&P 500, fell more than 1 percent as a disappointing quarterly report from Chinese tech giant Tencent weighed. Tencent’s U.S.-listed shares dropped 6.7 percent after reporting its slowest revenue growth rate since 2015. Macy’s shares dropped nearly 16 percent as the company’s quarterly report showed it is struggling to grow sales.

Oil sinks 3% to more than 2-month low, settling at $65.01, after big rise in US crude stockpiles. The outlook for the global economy darkens as analysts report world trade growth peaked in January, raising concerns that oil demand could slump.



BREAKING NEWS

U.S. stocks close lower as Turkey, trade worries continue to weigh. The Dow Jones Industrial Average DJIA, -0.54% fell 137.51 points, or 0.5%, to 25,162.41. The blue-chip index had shed more than 300 points during the session to fall below the 25,000 mark but subsequently reclaimed the key level. The S&P 500 index SPX, -0.76% dropped 21.59 points, or 0.8%, to 2,818.37. The Nasdaq Composite Index COMP, -1.23% declined 96.78 points, or 1.2%, to 7,774.12.

US retail sales, manufacturing data bolster Q3 economic outlook. The Commerce Department said retail sales increased 0.5 per cent last month. But data for June was revised lower to show sales gaining 0.2 per cent instead of the previously reported 0.5 per cent rise. Economists polled by Reuters had forecast retail sales nudging up 0.1 per cent in July. Retail sales in July increased 6.4 per cent from a year ago.

Turkey tariff move, EM bear market send shares spiralling. European shares sold off sharply on Wednesday after Turkey doubled tariffs on some US imports, and miners had their worst day since Britain’s 2016 Brexit vote on sliding commodity prices. The pan-European Stoxx 600 ended the day down 1.4 per cent with Germany’s DAX dropping 1.6 per cent.

Oil tumbles on surprise build in US crude inventories. Government data showed a surprise weekly increase in domestic crude stockpiles, compounding worries about the global economic growth outlook. US crude futures settled at US$65.01 a barrel, down US$2.03, or 3 per cent. Brent crude futures were down US$1.70, or 2.35 per cent, at US$70.76 a barrel.

Heeton and KSH buy second Japan hotel in Asakusa. Heeton will have a 70 per cent stake and KSH a 30 per cent stake in the asset, which is the duo’s second hotel property in Japan. The acquisition sum was not disclosed.

Vibrant Group suspects fire in China was deliberate act to destroy Blackgold’s accounts. The fire took place about a month after the group announced that its auditors have found accounting irregularities in certain units of wholly owned subsidiary Blackgold International Holdings, which Vibrant acquired a year ago. Blackgold is a coal producer that had been listed in Australia.


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

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