Daily Morning Note – 24 July 2019
WEEKLY MARKET OUTLOOK WEBINAR
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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.
Webinar Of The Week
Market Outlook: : 2019-07-22 (SREITS KDC CCT, China Weekly, Spore weekly, Technical, US weekly)
Date: 22 July 2019
Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research
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