Daily Morning Note – 7 Oct 2019



US stocks closed higher on Friday as the latest U.S. jobs report hit the sweet spot with Wall Street traders.

Hong Kong stocks fell on Friday after the city’s leader Carrie Lam announced a ban on face masks, effective October 5, amid more than four months of pro-democracy, anti-government protests.

Oil prices edged higher on Friday as an increase in U.S. jobs eased some financial market concerns that a slowing global economy could dent oil demand, but crude posted its second consecutive weekly loss.

Source: CNBC


Chinese officials are signalling they’re increasingly reluctant to agree to a broad trade deal pursued by US President Donald Trump, ahead of negotiations this week that have raised hopes of a potential truce. Vice-Premier Liu He, who will lead the Chinese contingent in high-level talks that begin this Thursday, told visiting dignitaries he would bring an offer to Washington that won’t include commitments on reforming Chinese industrial policy or the government subsidies that have been the target of longstanding US complaints, one of the people said.

British Prime Minister Boris Johnson warned the European Union on Sunday he will not delay Brexit beyond Oct 31, underlining that his latest proposals are a last chance to reach a deal. The UK premier said he would not request another delay, despite British MPs passing a law last month that requires him to seek another Brexit delay if he fails to secure an agreement by the end of a make-or-break EU summit on Oct 17-18.

HSBC has embarked on a cost-cutting drive that threatens up to 10,000 jobs, the Financial Times reported on Sunday, citing two people briefed on the matter. Any job cuts implemented as part of latest plan would come on top of 4,700 redundancies HSBC recently announced, and the cuts will focus on high-paid roles.

The Singapore Exchange Regulation (SGX) has rejected Innopac Holdings’ request for a two-month extension to report its financial results and hold its annual general meeting for FY2019 ended June.

Keppel Offshore & Marine wholly owned subsidiaries, Fernvale and FELS Offshore, have entered into a settlement agreement with subsidiaries of Sete Brasil including Urca, Frade, Bracuhy, Portogalo, Mangaratiba and Botinas, in relation to the Engineering, Procurement and Construction contracts (EPC Contracts) for the construction of six semisubmersible drilling rigs for these six Sete Brasil subsidiaries. Fernvale will take over ownership of the uncompleted rigs which arose from the performance of the EPC Contracts with Bracuhy, Portogalo, Mangaratiba and Botinas.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR


American Airlines Group Inc

Recommended Action: Technical BUY

American Airline (US: AAL) technicals suggest the stock may enter a bullish rebound soon after a prolonged decline.

Cisco Systems Inc

Recommended Action: Technical BUY

Cisco Sytems (US: CSCO) technicals point to a bullish rebound after a prolonged downtrend.

Read more technical pulse


Ciena Corporation – Upside on webscale and 5G network spending

Analyst: Edmund Xue, Chua Wei Ren

– Ciena Corporation develops and markets communications network platforms, software, and offers professional services.

– Ciena Corporation (CIEN) sees significant upside with spending from 5G telecom service providers and webscale providers

– A strong showing from webscale will drive growth.

– Ramp u from networking spending of service providers.

– We have a TECHNICAL BUY rating for CIEN.

Read more research reports

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Market Outlook: : (PSR) 2019-09-30 Lendlease, Venture, REITs monthly, China Weekly, Technicals

Date: 30 September 2019

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