Daily Morning Note – 24 July 2019

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.

PHILLIP SUMMARY

U.S. stocks closed solidly higher Tuesday, and the Dow narrowly missed a closing record, as investors appeared to react positively to reports that the U.S. and China would hold face-to-face talks for the first time since May. The Dow Jones Industrial Average, +0.65% closed 177 points, or 0.7%, higher at 27,350 (on a preliminary basis), just off its July 15 closing record at 27,359.16. The S&P 500 index, +0.68% ended 0.7% higher at 3,005, marking its best finish since July 3, according to FactSet data. Meanwhile, the Nasdaq Composite Index, +0.58% wrapped up the session with a 0.6% gain to reach 8,251. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to China for meetings with China’s Vice Premier Liu He, following their collapse in May, the Wall Street Journal reported. Better-than-expected earnings from Dow components, Coca-Cola KO, +6.07% and United Technologies UTX, +1.50% reported before the market opened also helped stocks rise, marking a second straight day of gains.


BREAKING NEWS

Boris Johnson will be the U.K.‘s next prime minister. The public face of the Brexit campaign won the contest to succeed Theresa May, taking over a country in crisis and a government on the brink of breaking apart. He defeated Foreign Secretary Jeremy Hunt by a landslide in a ballot of the Conservative Party’s roughly 160,000 members.

Nissan plans to shed at least 5,200 additional jobs globally this year, according to Kyodo News. This would take the total number of dismissals to 10,000 worldwide, or more than 7% of the company’s workforce. The cuts come as the automaker looks to revive business in the wake of car-inspection scandals and the arrest of former Chairman Carlos Ghosn.

Deutsche Bank AG’s turnaround strategy rests in large part on shedding 288 billion euros of unwanted assets. Three bank insiders said it will take years, tying up capital that could have generated income of 500 million euros (S$761 million) a year. The opportunity cost of unloading the assets, which has not been previously reported, underscores the challenges facing chief executive Christian Sewing as he attempts to turn around the bank and restore confidence among investors who have seen the value of their shares decline by 75 per cent in the past four years.

The Federal Trade Commission is set to announce on Wednesday that Facebook Inc has agreed to a sweeping settlement of significant allegations it mishandled user privacy and pay US$5 billion, two people briefed on the matter said.

Britain’s daily foreign exchange turnover rose to a record high in April, the Bank of England said on Tuesday, as investors concerned about central bank policy U-turns sought to protect their portfolios. The BoE’s semi-annual survey, which showed daily average FX turnover in Britain jumped 12 per cent to US$2.86 trillion in the six months to April, underlined the rude health of London’s foreign exchange industry despite worries about the impact of Britain’s departure from the European Union.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR

TECHNICAL PULSE

Yangzijiang Shipbuilding Holdings Ltd

Recommended Action: Technical BUY

When Yangzijiang’s price broke down of its uptrend line on May 2019, the initial prognosis was that the stock would make a lower low. However, the stock had a bullish reverse at 1.35 in June 2019.

Read more technical pulse

Webinar Of The Week

Market Outlook: : 2019-07-22 (SREITS KDC CCT, China Weekly, Spore weekly, Technical, US weekly)

Date: 22 July 2019

For more on Market Outlook

Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research

Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information





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.