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Straits Times 3,065.83 -44.52 -1.43%
Hang Seng 25,469.19 -710.14 -2.71%
Dow Jones 25,628.90 -623.30 -2.37%
Shanghai Composite 2,868.75 -28.67 -0.99%
Watch The Jobs Data For Rate Hikes Timing
By: Louis Kent Lee
Articles (199) Profile

With the fiasco seen in the Asian markets in just a matter of days in the week of 27th July to 29th July, it is gutsy to say one is not worried.

On 27th July, the Shanghai Composite Index (SCI) staged a three day losing streak, until market participants actually acknowledged the actions of the Chinese Securities Regulatory Commission that saw the central bank injecting cash into money markets with a hint of further monetary easing.

Responding to this acknowledgement, the SCI actually staged a reverse rally and registered the biggest daily gain in one and a half weeks on 29th July.

The much anticipated federal open market committee (FOMC) meeting in July suggests that the FOMC would require more data to see progress in the labour market before dropping the rate hike knife.

Therefore, it is felt that the July and August jobs reports (released on 7 August and 4 September), along with routine labour market data like average hourly rate, are at the top of the list in order to make a more decisive decision on a lift off of a rate hike in September.

In the lion city, we saw Noble breaking its $0.50 support level, one hour into the trading day on 31 July.

Noble has dropped more than 30 percent in the past one month, and on a 52-week trading change, it has reflected a more than 70 percent haircut.

Louis is a qualified accountant with the ACCA, and is the Research Editor at Shares Investment magazine.

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