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Straits Times 3,234.12 +1.33 +0.04%
Hang Seng 28,392.22 -147.44 -0.52%
Dow Jones 25,064.36 +44.95 +0.18%
Shanghai Composite 2,799.48 -14.56 -0.52%
Markets Falter Before Rallying On Oil Price Rebound
Singapore Market Commentary | 21 October 2016
Related stocks:
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BN4
By:

Early in the past fortnight, stocks came under pressure amid renewed concerns regarding Fed rate hike and global economic weakness arising from China’s disappointing trade data. Stocks finally found strength and rallied this week, amidst a rebound in oil prices.

Major indices in Wall Street closed lower on Thursday, with Dow Jones Industrial Average, Nasdaq Composite and S&P 500 losing 0.7 percent, 1.4 percent and 1.1 percent; finishing at 18,162.35, 5241.83 and 2,141.34 respectively.

Asian markets mostly reacted in the same fashion, rallying on the back of rebound in oil prices. In the past fortnight, WTI Oil prices slumped below US$50 per barrel but quickly rose back as latest US weekly crude inventories showed a surprising drop of 5.2 million barrels.

While the Hang Seng Index lost 2.4 percent and closed at 23,374.40, Nikkei 225 however, managed to rebound into upside territory led by gains from its real estate, transportation equipment and banking sectors. The Japanese Index closed higher at 17,184.59 on Friday, gaining 1.5 percent.

The local scene also saw a slew of negative news, with giant conglomerate Keppel Corporation, making headlines on job cuts. Slower market activity is also apparent, in view of Singapore Exchange’s poor earning results. Trading volumes are expected to remain subdued amidst slow global economic growth prospects. The Straits Times Index ended the week lower at 2831.06.

Looking ahead, some key economic data to look out for include US advance quarter gross domestic product, Bank of Japan outlook report and policy rate as well as China purchasing manager index.

Singapore Exchange  7.480 +0.04 +0.54%   
Business: [FY17 Turnover] Equities & fixed income (50.5%), derivatives (37.8%), mkt data & connectivity (11.7%).

Insight: Apr-18, 9M18 total operating revenue widen by 6.5%... Read More
Keppel Corp  6.680 +0.03 +0.45%   
Business: [FY16 Turnover] Offshore & marine (O&M) (42.2%), ppt(30%), infrastruc (25.8%), invs (2%).

Insight: Apr-18, 1Q18 revenue rose 17.8% due to higher cont... Read More


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