Daily Morning Note – 28 March 2019
WEEKLY MARKET OUTLOOK WEBINAR
Register HERE for MONDAY’s 11.15am webinar.
Archived webinars available.
YOUR PHILLIP SUMMARY
All Brexit models have been rejected and the British voted on eight alternatives to Prime Minister Theresa May’s Brexit deal. The pound retreated, with the pound-to-euro rate dropping -0.15% following the parliamentary results.
Asian stocks looked set to open lower after U.S. stocks fell on concerns about the global economic outlook. Treasury 10-year yields declined to the lowest level since December 2017, and rates on benchmark German bunds sank further below zero after European Central Bank President Mario Draghi said an accommodative stance is still needed.
RESEARCH REPORT
US Strategy – Equities rally despite yield curve inversion
Analyst: Edmund Xue
– Equity market still rallies for an average of 22 months after the first inversion of the 10-year –
3-month yield curve (3m10y).
– On average, it took 22 months after the first inversion before a recession occurs.
– Our Phillip Recession Indicators, along with the corporate credit spread are still at healthy
level
BREAKING NEWS
The United States and China open the latest round of their trade talks on Thursday as the economic superpowers edge towards a deal to resolve a months-long spat that has rattled the global economy.
British Prime Minister Theresa May offered on Wednesday to quit if her European Union divorce deal passes at the third attempt, making a last-ditch sacrifice to try to win over dozens of rebels within her Conservative party.
Embattled aviation giant Boeing pledged on Wednesday to do all it can to prevent crashes like the two that killed nearly 350 people in recent months, as it unveiled a fix to the flight software of its grounded 737 Max aircraft.
Singapore Airlines’ S$500 million 3.03 per cent five-year bonds have been upsized to S$750 million following strong demand from investors.
ST Engineering announced on Wednesday that it has entered into a conditional share purchase agreement to acquire 100 per cent ownership of Belgium-based satellite telecommunications firm Newtec Group for 250 million euros (S$381 million) in cash.
Singapore Exchange has acquired a 20 per cent stake in BidFX to expand its FOREX pillar, including an option for additional shares to gain a controlling interest, for US$25 million in cash.
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
| 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. |
