Daily Morning Note – 6 Aug 2019
WEEKLY MARKET OUTLOOK WEBINAR
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PHILLIP SUMMARY
Stocks suffered their biggest one-day decline of 2019 on Monday as China allowed its currency to fall to a more-than-10-year low versus the dollar after President Donald Trump rattled markets by announcing additional tariffs on Chinese goods late last week. Stocks ended off of session lows, which had seen the Dow Jones Industrial Average drop by more than 900 points, but still suffered sharp losses. The Dow ended the day down 767.27 points, or 2.9%, at 25,717.74 , while the S&P 500 declined 87.31 points, or 3%, to close at 2,844.74. The Nasdaq Composite shed 278.03 points to finish at 7,726.04, a decline of 3.5%, as China-sensitive tech stocks came under pressure. Trump, in a Monday-morning tweet, accused China of currency manipulation and said the Federal Reserve should “listen”. Meanwhile, expectations for a half-point interest-rate cut by the Fed when policy makers meet in September continued to rise Monday, with traders reflecting almost even odds of a half- or quarter-point trim.
BREAKING NEWS
China’s decision to let its currency weaken against the dollar on Monday sent global markets diving further into the red and provoked a Twitter tirade from US President Donald Trump.
The bond market’s economic canary in the coal mine looks poised to hit Japan. The country’s benchmark 10-year yield is on track to fall below its two-year equivalent for the first time since the collapse of the Japanese economic bubble in 1991.
Monetary Authority of Singapore (MAS) is seeking to impose new requirements on financial institutions (FIs) in Singapore to improve controls and facilitate investigations in market abuse cases.
The Straits Times Index (STI) plunged 66.6 points, or 2.04 per cent, in Monday’s trading to 3,194.51. Turnover on the local bourse was 1.20 billion securities worth S$1.39 billion, which worked out to an average unit price of S$1.16. Losers outnumbered gainers 378 to 111, or seven securities down for every two up.
Wall Street stocks plunged on Monday after a forceful response by Beijing to the latest US tariff announcement escalated an ongoing trade war, exacerbating global growth worries.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL PULSE
Mapletree Commercial Trust
Recommended Action: Technical BUY
Mapletree Commercial Trust bullish move is once again is marked by a close above the immediate support at 2.01. The bear came into action initially on last Thursday by having a strong gap down.
Webinar Of The Week
Date: 05 August 2019
Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research
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