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Markets On The Verge While China Market Rallies
Singapore Market Commentary | 03 October 2014
By: Peter Ng
Articles (81) Profile

As quantitative easing by the US Federal Reserve is set forth to end by this month, Chairwoman of the US Fed, Janet Yellen, stated on 24 September that the US Fed’s commitment to keep interest rates near zero for a “considerable time” could change if the US economy continues to perform beyond expectations. Following the announcement, the Standard & Poor 500 Index retraced 52.13 points from a two-week high of 1998.30 points to 1946.17 points on 2 October.

Meanwhile in Hong Kong, for 5 days since 28 September, demonstrators gathered at the financial district in Hong Kong in response to a decision by the Chinese government to limit political reforms. The Hang Seng Index was dragged down by 613.85 points and closed at 23064.56 points today since the closing price on 26 September (the last trading session before the protest).

During the rout, mega fund houses such as Templeton Emerging Markets Group and Aberdeen Asset Management are preparing to buy Hong Kong shares that were inadvertently affected during the ongoing protests. These companies refer to those that do not have or have a limited scope of business operations in Hong Kong.

On the flip side, the Chinese market continues its rally, seemingly unaffected by the unrest in Hong Kong as the Shanghai Stock Exchange Composite Index accelerated for the past 7 trading sessions since 22 September before closing at 2363.87 points.

Returning home, the Straits Times Index was down 38.97 points for the week since the closing price of 3292.21 points on 26 September.

Backed by a strong interest in investments, Peter's research spans across a range of industries, with his focus placed on companies listed on the SGX.

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