Username
Password
Forget Password?
  1. Indices
  2. Commodities
  3. Currencies
Straits Times 3,204.71 -4.73 -0.15%
Hang Seng 27,598.02 +384.61 +1.41%
Dow Jones 25,758.69 +89.37 +0.35%
Shanghai Composite 2,698.47 +29.50 +1.11%
Global Stocks Find Support After Sell-Off
By: Jimmy Ng
Articles (36) Profile

On 29 May 2018, Wall Street tumbled with the Dow Jones Industrial Average (DJIA) losing more than 390 points as traders became worried about the political commotion in Italy and its rising costs of borrowing. The political uncertainty in the third largest economy in the Eurozone ignited fears of a resurgence of a euro debt crisis back in 2011 – 2012, and a potential “Italexit” could threaten the European Union. Finding the sell-down a little overdone, the US bellwether recouped most of its losses the following day only to be sold down again on 31 May 2018 after the US surprisingly reinstated tariffs on China as well as its major allies. Over the last two weeks, DJIA lost 1.2 percent to end at 24,415.84.

Over in Asia, major Asian indices picked themselves up after a near two-percentage point decline on Wednesday. After shedding 735 points in a two-day plunge, Hang Seng Index stabilised following US’s recovery, but remained under pressure due to renewed concerns of US-China trade tensions after US President Trump moved ahead to reinstate tariffs on Chinese imports. The move came as a surprise as US and Chinese officials issued a joint statement with a positive tone just 10 days before. In the course of the last fortnight, Shanghai Composite Index sank 3.7 percent to 3,075.14.

Closer at home, Singaporeans were baffled by Trump’s oscillating stance on the US-North Korea summit. Trump had previously sent a letter to his North Korean counterpart Kim Jong Un to cancel the summit which rescinded and expressed readiness to meet Kim the very next day. Meanwhile, many were disappointed by Malaysia’s Prime Minister Mahathir’s intention to shelve the high-speed rail project citing the country’s priority to manage its debts.

In the local equities market, Singapore Exchange (SGX) has been entangled in an ongoing dispute with the National Stock Exchange of India (NSE). In response to an interim injunction filed by NSE, SGX will head for arbitration in India to settle the disagreement and will hold back the launch of its new India derivatives products pending its outcome. Straits Times Index fell 2.9 percent to close at 3,427.51.

Equipped with a Bachelor in Mechanical Engineering and a few years of experience in the finance industry, Jimmy hopes to help investors gain deeper insights and make well-informed decisions by sharing his perspective.

Please click here for more information about this author.


Join The Conversation
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!

All Rights Reserved. Pioneers & Leaders (Publishers) Pte Ltd. Best viewed with Mozilla Firefox 3.5 and above.