Daily Morning Note – 29 November 2018

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YOUR PHILLIP SUMMARY

U.S. stocks closed higher Wednesday, with the Dow Jones Industrial Average surging more than 600 points, as investors interpreted Federal Reserve Chairman Jerome Powell’s comments on interest rates as dovish. The Fed had previously maintained a hawkish stance in its bid to normalize the monetary policy, and that had worried the market about tighter liquidity. (DJIA +2.5%; SPX +2.3%; COMP +3.0%)

“Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth,” said Powell during a speech at the Economic Club of New York. The comments were viewed by investors as a retreat from his stance in early October when he had said that the central bank “may go past neutral, but we’re a long way from neutral at this point, probably.”

Global economic growth may be slowing more than forecast only a month ago, underscoring the urgency for countries to pull back from a damaging trade war, the International Monetary Fund warned. The IMF downgraded its forecast for world growth last month, and recent data suggest the outlook has gotten worse since then, the fund said Wednesday in report. Financial conditions have tightened, especially in emerging markets, while trade tensions have increased, said the Washington-based fund.

Source: MarketWatch, Bloomberg

BREAKING NEWS

A day after President Donald Trump’s latest attack on the US central bank, Federal
Reserve chief Jerome Powell
hinted Wednesday the key lending rate would move
higher but said there was no preset course.

The audits conducted by accountants from the Singapore arm of EY on a subsidiary of
commodity trader Noble Group for five financial years from 2012 to 2016 have come
under review in a criminal probe.

ASCENDAS Hospitality Trust is set to acquire a hotel property in South Korea for 77.5
billion won (S$94.5 million).

China Everbright Water has secured a project commanding an investment of about 230
million yuan (S$45.59 million) in China’s Jiangsu province.

Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, Phillip Securities Research

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