Daily Morning Note – 26 July 2019

WEEKLY MARKET OUTLOOK WEBINAR

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PHILLIP SUMMARY

Most major Asia Pacific stock markets closed higher on Thursday as semiconductor stocks in Japan and South Korea rose.

Stocks fell on Thursday as investors worried that the Federal Reserve will not be as dovish as expected in its monetary policy announcement next week following strong economic data and remarks from the top European Central Bank official.

The Dow Jones Industrial Average closed 128.99 points lower, or 0.5%, at 27,140.98. The S&P 500 also pulled back 0.5% to close at 3,003.67. The Nasdaq Composite lagged, sliding 1% to 8,238.54. Both the S&P 500 and Nasdaq hit record highs in the previous session.


BREAKING NEWS

Federal Reserve expected to cut rates for first time in a decade this month: Poll

European stock markets turned into a sea of red on Thursday after the European Central Bank signalled monetary policy easing ahead, but disappointed investors who sought more clarity on its action to stimulate a slowing economy.

Wall Street opened slightly lower on Thursday after a clutch of earnings reports pointed to a slowing global economy, while the European Central Bank opening the door to future interest rate cuts limited losses.

Apple agreed Thursday to pay US$1 billion to acquire the majority of Intel’s smartphone modem business, a move giving the iPhone maker more control over its supply chain.

SINGAPORE’S medical device market is projected to register a compound annual growth rate (CAGR) of 8.4 per cent from 2018 to 2023, down from a previous estimate of 9.1 per cent, with the industry valued at some S$1.3 billion in 2023, according to a report by Fitch Solutions Macro Research on Thursday.

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

Research Report

China banking sector – Robust asset fundementals and increasing capital inflow

– We are overweight on China Banking sector. Average dividend yield remains around 5%.

– With required reserve ratio cut and perpetual bond issuing, the China banking sector’s capital and liquidity continue to increase;

We are OVERWEIGHT on the China Banking Sector. We believe the sector’s robust capital and the increasing capital inflow will provide further upsides to valuations.



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





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