Daily Morning Note – 7 July 2021
Asian stocks look set to fall Wednesday after U.S. shares snapped a winning streak and Treasury yields retreated on concerns about the economic outlook and risks from Covid-19 variants. The dollar firmed.
Futures dropped in Japan, Australia and Hong Kong. U.S. contracts edged down after the S&P 500 dipped from a record, led by the energy and financial sectors. Amazon.com Inc. helped take the Nasdaq 100 to a fresh peak. Ten-year U.S. Treasury yields hit February lows amid slower-than-expected service-sector expansion. Australian and New Zealand sovereign bonds rallied.
Rex International has entered into a subscription agreement to invest up to US$4 million in commercial drone company Xer Technologies, the group said on Tuesday. The investment comprises US$1 million for a 40 per cent interest in Singapore-incorporated Xer Technologies, and a commitment to inject up to US$3 million in the company, subject to the achievement of certain technical and sales milestones within the next 18 months.
ST Telemedia Global Data Centres (STT GDC) on Tuesday announced that it has officially launched its hyperscale data centre with an IT load capacity of up to 40 megawatts (MW) at Loyang Close. The six-storey facility, STT Loyang, is STT GDC’s largest facility in Singapore to date, and has a gross floor area of more than 27,000 square metres (sq m), as well as a net lettable area of over 10,700 sq m.
Dasin Retail Trust’s trustee-manager announced on Monday that its chairman Zhang Zhencheng, as well as Aqua Wealth Holdings, has terminated a proposed sale and purchase agreement with two subsidiaries of ARA Asset Management made in April this year. Mr Zhang is also a controlling shareholder of the trustee-manager, while Aqua Wealth is a controlling unitholder of the trust. As part of the earlier proposed agreement, two subsidiaries of ARA Asset Management were to buy a half-stake in the trustee-manager and some 5 per cent of total units issued in the trust.
Long-term Treasury yields fell on Tuesday amid signs that the economic recovery from the pandemic could be slowing. While economic growth boomed in the first half of 2021 and is set to keep expanding rapidly the rest of the year, investors digested signals that much of the comeback has already occurred. The latest numbers showed growth in the service sector of the economy slowed by more than expected in June from a record level the prior month. This follows a tick-up in the unemployment rate on Friday.
Major U.S. airlines relaxed ticket change policies for several Florida cities as Tropical Storm Elsa approached the state. Heavy rains and high winds are likely in western Florida through Wednesday, the National Oceanic and Atmospheric Administration said Tuesday. The storm currently has maximum sustained winds of about 60 mph, the NOAA said. Tampa International Airport said it would suspend passenger flights from 5 p.m. EDT on Tuesday and plans to reopen at 10 a.m. on Wednesday.
The Department of Defense announced Tuesday it’s calling off the $10 billion cloud contract that was the subject of a legal battle involving Amazon and Microsoft. The JEDI, or Joint Enterprise Defense Infrastructure, deal has become one of the most tangled contracts for the Department of Defense. In a press release Tuesday, the Pentagon said that “due to evolving requirements, increased cloud conversancy, and industry advances, the JEDI Cloud contract no longer meets its needs.”
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
Capitaland Ltd (SGX: C31) strong upside is set to continue based on the recent technical and price actions.
Buy spot: 3.77 Stop loss: 3.53 Take profit 1: 4.10 Take profit 2: 4.38
Fortress Minerals Ltd
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
Fortress Minerals Ltd (SGX: OAJ) strong upside is set to continue after a 2 months period of consolidation from 11th May to 28th June 2021 based on the recent technical and price actions.
Buy spot: 0.705 Stop loss: 0.515 Take profit 1: 0.900 Take profit 2: 1.025
HK Reports – Read up on our Hong Kong reports here
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Market Outlook: CapitaLand, Oxley Holdings, SPH, SG REITs Monthly, SG Weekly
Date: 5 July 2021
Updates summarised in 3 minutes
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