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STI Breaks 3,000; Corporate Earnings In Full Swing
Forward, Tradeable | 03 February 2014
By: Justin Harper
Articles (23) Profile
By: Louis Kent Lee
Articles (199) Profile

While we were away for the Chinese New Year, the rest of the world continued trading, and to be honest, market sentiment aren’t exactly as brilliant as we hoped for it to be.

The Straits Times Index greeted the market after the lunar New Year by breaking below 3,000. The Nikkei 225 was drenched in a pool of red as well.

This week’s economic calendar is busy and will be focusing very much on manufacturing data. China’s CPI and Trade balance will also be a thing to watch, as most onlookers will be gauging the numbers for a feel of what’s it like for the year ahead.

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

What to Look Out for in the Next 7 Days…

In Singapore…

  • January PMI manufacturing survey

Although Singapore’s GDP growth came in at the higher end of projections, there was cause for concern from factory output data in December. Manufacturing PMI came in at 49.7 (any figure below 50 signifies contraction) compared to 50.8 for November.

The blip was attributed to a number of factors but it still caught many by surprise as it was the first contraction for nine months. Economists expect that manufacturing activity in Singapore will improve this year.

Around the World…
While China celebrates the start of the year of the horse, the economic calendar still rolls on. Whether anyone is around to trade on the back of it is another story.

  • January CPI
  • January trade balance

Consumer prices index (CPI) data will be released this week. December saw price inflation edge down to 2.5 percent, compared to November’s three percent. Inflation for 2013 came in at 2.6 percent which is hardly a cause for concern.

The Middle Kingdom will also publish trade balance numbers, keenly watched as they are a good indication of global demand. December saw China’s trade surplus growth for 2013 by 12.8 per cent to US$260 billion. January’s figure will set the scene for the year ahead from the world’s factory.

US:

  • Non-farm payrolls data
  • December factory orders
  • January manufacturing PMI data (Markit)

It’s a big week for the world’s largest economy with manufacturing data due out and the all-important jobs figures from non-farm payrolls.

The big one of the week is non-farm payrolls, but this won’t happen until Friday night Singapore time, so will only have limited effect on trading this week. December saw jobs growth of just 74,000, well below expectations, although unemployment did drop to 6.7 percent.

Many have questioned whether the Fed’s tapering of its asset purchases may have been too hasty. So January’s jobs data on Friday will be keenly watched.

We have also January’s PMI manufacturing data from Markit to digest. December’s print saw a healthy 57 reading, although January may not maintain such growth. This is linked to December’s factory orders, which are out this week.

Europe:

  • January PMI manufacturing survey
  • December retail sales

PMI manufacturing data is being realised this week for all the world’s biggest economies and the Eurozone’s are always food for thought. December’s reading was a pleasant surprise, hitting 52.7, which was the highest level for almost three years.

While January’s figure may not reach this mark, the feeling is that Europe has turned the corner and could be on its way to a sustained recovery. We also have retail sales for December which may be given a boost from Christmas shoppers.

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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The Shares Investment editorial team welcomes constructive feedback on our coverage and content. We would also be delighted to answer any questions on the above article. Leave us a comment below, and we'll get back to you shortly!

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