Daily Morning Note – 28 June 2019
WEEKLY MARKET OUTLOOK WEBINAR
Register HERE for MONDAY’s 11.15am webinar.
Archived webinars available.
YOUR PHILLIP SUMMARY
The S&P 500 halted a four-day slump but the Dow marked its longest skid since March as investors awaited U.S.-China trade talks between President Donald Trump and China’s President Xi Jinping during the G-20 meeting in Japan that begins Friday.
The Dow Jones Industrial Average edged 10.24 points, or less than 0.1%, lower at to close at 26,526.58, marking a third straight decline, its longest slump since a five-session decline ended March 8, according to FactSet data. Meanwhile, the S&P 500 index rose 11.14 points, or 0.4%, to finish at 2,924.92, and the Nasdaq Composite Index finished 57.79 points, or 0.7%, higher at 7,967.76.
A tariff cease-fire between Beijing and Washington would avert the next round of tariffs on additional $300 billion worth of Chinese imports. The Wall Street Journal reported that Xi will present President Donald Trump terms to resolve a market-rattling trade confrontation ahead of the expected the Group of 20 gathering of developed countries set to take place this weekend.
On the economic data front, the Commerce Department issued its final revision of first quarter GDP growth and said the U.S. economy grew at a solid rate of 3.1% in the first quarter, but consumer spending and business investments grew at a slower pace than in the earlier estimates. The Labor Department said initial claims for unemployment benefits rose 10,000 to 227,000 in the seven days ended June 22, compared with the week prior.
Singapore Exchange Ltd
Recommended Action: Technical BUY
In recent months, SGX has been performing well since the stock broke out of the 7.51 range. No doubt the stock will continue to perform well and may even break the resistance level of 8.05. Based on the technicals, the stock may be headed into a corrective phase as the graveyard Doji pattern on Wednesday rejected and closed below the 88.6% of the Fibonacci level of the total range from 7.22 – 8.05. A sign of bullish exhaustion. To add on, the price did not close above the key resistance level of 7.95 despite a minor bullish gap up on Thursday opening. This signifies that the bull may be exhausted.
Ratings agency Moody‘s Corp and Israeli cyber group Team8 launched on Thursday a joint venture to assess how vulnerable businesses are to cyber attacks and create what they hope will become a global benchmark.
US economic growth accelerated in the first quarter, the government confirmed on Thursday, but the export and inventory boost to activity masked weakness in domestic demand, some of which appears to have prevailed in the current quarter.
The United States should immediately cancel sanctions on Chinese telecoms equipment maker Huawei, a commerce ministry spokesman said on Thursday, days before the two countries’ leaders are due to meet for talks on trade.
Shares of Boeing tumbled Thursday after US regulators identified a new issue in the Boeing 737 Max that will likely slow the plane’s return to service following two deadly crashes.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research
|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.|
|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.|