Daily Morning Note – 30 May 2018
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U.S. stocks sank Tuesday amid political turmoil in Italy that sent the euro tumbling and ongoing difficult trade talks with China. Bank stocks led the decline, caused by concerns about a global credit blight and anaemic interest rates.
A risk-off attitude fuelled demand for safer asset classes, including U.S. Treasury. The rate on the U.S. 10-year note fell to 2.77 percent Tuesday, down from highs above 3.1 percent in recent weeks.
Political uncertainty in Italy was another cause of panic in the market, raising the spectre of a euro crisis that could ripple across the global economy and even force the Federal Reserve to slow its rate-hiking plans. President Sergio Mattarella on Sunday blocked the formation of a government that would have been decidedly against the euro.
US crude tumbles 1.7%, settling at $66.73, as OPEC looks poised to ease output caps. Saudi Arabia and Russia have recently signalled that OPEC and its allies could decide at a June 22 Vienna gathering to begin exiting their supply cutting agreement.
Yoma Strategic Holdings Ltd. announced that the Group has been selected to bring Little Sheep, one of the world’s most international hot pot brands established in Inner Mongolia, to Myanmar.
Singapore Exchange (SGX) will head for arbitration in India to thrash out its ongoing dispute with the National Stock Exchange of India (NSE). The decision on the injunction is expected to be settled by June 16. SGX will hold back the launch of its new India derivatives products, pending the outcome of the arbitration.
Far East Orchard Ltd. will enter into a conditional purchase and sale agreement with Shimizu Corporation for the purchase of a plot of land and hotel to be constructed thereon in Tokyo, Japan. Purchase consideration is S$101mn. The hotel will be branded under a Far East Hospitality hotel brand.
JUMBO Group Limited announced the opening of its first JUMBO Seafood outlet in Xi’an. The new restaurant will be the Group’s sixth JUMBO Seafood outlet in the PRC, and the first outside of Shanghai and Beijing.
Source: SGX Masnet, Bloomberg, Channel NewsAsia, Reuters, The Business Times, PSR
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