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Straits Times 3,166.84 -16.16 -0.51%
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STI Up In Morning Trade; What’s Happening This Week?
Forward, Tradeable | 09 December 2013
By: Justin Harper
Articles (23) Profile
By: Simeon Ang
Articles (125) Profile

Two sets of strong data from China and US may have pushed Asian markets higher this morning.

China’s export economy continues on its upward trajectory (+12.7 percent) as the world’s second largest economy recorded its highest trade surplus since January 2009. The surplus of $33.8 billion was fueled by increased demand globally and could be a sign that the global economy is strengthening.

Meanwhile, unemployment in the US hit a significant milestone of 7 percent (a key target for the Federal Reserve). Even more interesting is the fact that the decline in unemployment came in part due to an increase in the US labour force (previously, declines in the rates was due to a decrease in the US labour force).

The STI has seen gains during the morning trading session. Possibly due to the good economic figures released over the weekend. However, if you might not want to pop the champagne just yet. These gains could head south the moment investors get worried of an early Federal Reserve taper.

Read on to find out what’s in store for the trading week ahead!

In Singapore…

  • Non-oil domestic exports for November
  • Retail sales for October

Singapore economic data has been healthy recently, showing the economy on course for GDP growth of up to 4 percent this year.

Non-oil domestic exports (NODX) have also been showing signs of improvement. After eight months of decline, October’s figure showed growth of 2.8 percent thanks to a boost in demand for circuit parts and petrochemicals.

Traders will hope November’s print will continue the upward trend and lead to a strong Q4. We also have retail sales figures for October due out which have been on the up recently. September saw a 0.5 percent rise compared to August.

Even if October’s data does disappoint, retailer have the all-important festive season to give a year-end boost.

Around the World…

In the US, look out for,

  • Retail sales for November
  • Jobless claims

It looks set to be a relatively quiet week for the world’s largest economy, if the economic calendar is anything to go by. The big news will be retail sales figures for the U.S, due out on Wednesday, and coming the week after Black Friday.

This should give the numbers a boost but data already released from Retail Metrics shows a 1.9 percent rise last month, falling below expectations of 3 percent. We will also see weekly jobless claims which come after last Friday’s non-farm payroll figures.

China is the busiest economy this week with a slew of data including,

  • Industrial output figures for November
  • Retail sales
  • Loan growth
  • Foreign direct investment (FDI)

As always, China’s industrial output figures will be eagerly anticipated, and are slated for release on Tuesday. As the world’s factory, China has set high expectations for itself and so far the figures have been holding up well.

Chinese factory output is measured regularly throughout each month with rival data providers, flash estimates etc. Official PMI manufacturing data out last week showed a reading of 51.4 for November which was above analysts’ expectations of 51.1.

While it was the same figure as October, this still represented an 18-month high. China’s GDP growth for 2013 should come in at 7.6 percent this year, above the 7.2 percent the government says is needed to keep unemployment stable.

Scroll down to our Calendar below to find out more about the exact dates of these figures release as well as other important economic data.

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This is a co-written article of Shares Investment, which lays out the analytical ideas and thoughts of the authors, who are well versed in investments and market concepts.


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