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The Name Is Volatility, Stock Market Volatility
By: Louis Kent Lee
Articles (199) Profile

In just one week, we saw two interventions by the Chinese government to salvage the Chinese markets.

Sparking off a rout in the global markets on 24 August, Asian markets registered whopping declines, which saw our local Straits Times Index (STI) almost breaking below the 2,800 point mark.

In a matter of days, China’s intervention using interest rates and direct purchasing boosted momentum, and it looks like we are set for an all green closing on 28 August 2015.

US stocks scored the best two-day run-up (26 and 27 August) since the global financial crisis as strong economic data and a sharp rebound in oil prices extended a global relief rally.

Reduced expectation from Fed official’s recent remarks of a rate hike in September was also one of the fuelling catalysts that made DJIA move upwards.

In the two days, the Dow Jones Industrial Average (DJIA) rose 988 points, or 6.3 percent.

Singapore stocks took the lead from the better performing Asian markets after the DJIA rally, and was seen trading in the morning session at 2,991.1 points (up 45.67 points) as of time on writing on 28 August.

Immediate resistance for the STI from a chart perspective is at 3,000 points, while baseline support is at 2,680 points.

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

Please click here for more information about this author.

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