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Straits Times 3,357.22 -20.74 -0.61%
Hang Seng 28,371.26 -394.14 -1.37%
Dow Jones 27,154.20 -68.80 -0.25%
Shanghai Composite 2,886.97 -37.23 -1.27%
Trade Talks Bring Rays Of Hope For An Imminent Rebound
By: Jimmy Ng
Articles (51) Profile

Asian markets were badly shaken last week as Turkey’s currency crisis raged on. The Turkish lira has plunged more than 20 percent last week and as much as 40 percent against the dollar since the start of the year, amidst political conflicts with the United States (US) and President Rrdogan’s repeated calls for lower interest rates in the face of higher inflation. On 13 August 2018, stocks fell 2 percent in Tokyo and more than 1.5 percent in Hong Kong. Fears are mounting that large funds outflow from the emerging markets could trigger a large-scale calamity similar to that of the 1997 Asian Financial Crisis should confidence was not restored quick enough.

Meanwhile resumption of trade talks between US and China this week in Washington has generated new hopes of achieving a breakthrough after months of standstill with regard to the trade disputes. These formal negotiations since June were aimed at averting an all-out trade war after a new round of tariffs on US$16 billion of exports took effect on 23 August.

Over the last two weeks,Dow Jones Industrial Average inched up 0.6 percent to 25,656.98, while both Hang Seng Index and Shanghai Composite Index declined 2.4 percent simultaneously.

Closer to home, highlights of the National Day Rally 2018 drew much attention among fellow Singaporeans after the celebration of the nation’s 53rd birthday. This year, Prime Minister Lee Hsien Loong addressed some of the people’s more critical concerns, including plans to upgrade and redevelop Singapore’s public housing as well as measures to help Singaporeans manage the cost of living and healthcare costs.

Straits Times Index fell 2.2 percent to end at 3,213.00 last fortnight, ahead of the Jackson Hole symposium to be held at the end of this week where central bankers from around the world meet. Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech on Friday morning, which Fed watchers would be looking for greater clarity on the path of interest rates and balance sheet policy.

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.

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