FW: OCBC Overnight Market Commentary & Outlook - 25 Jul 2016
Ye Tian (James)
25 Jul 2016
OVERNIGHT MARKET COMMENTARY
Market Recap
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Exhibit 1: Intraday Dow Jones Industrial Average |
Exhibit 2: Intraday S&P 500 |
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Source: Bloomberg |
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Source: Bloomberg |
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· U.S. stocks rose cautiously Friday to notch a fourth week of gains, with a rally by telecom shares offsetting weakness in the industrial sector as investors awaited this week’s Federal Reserve policy statement.
· All ten S&P 500 industries closed higher, led by Telecommunication Services (1.33%) and Utilities (1.32%). The S&P 500 index was up 0.61% for the week.
· Sep WTI Crude lost 56 cents, or 1.25%, to close at US$44.19/barrel while Sep Brent fell 51 cents, or 1.10%, to end at US$45.69/barrel. For the week, WTI and Brent ceded 5.27% and 4.03% respectively.
· Gold for Aug delivery slipped US$7.60, or 0.57%, to finish at US$1323.40/ounce while Sep Silver shed 13 cents, or 0.64%, to settle at US$19.69/ounce. For the week, gold and silver decreased by 0.30% and 2.36% each.
Implications for Singapore
· Continued gains on Wall Street could see the STI extending its 0.2% rebound from Friday, inching the index ever closer to the key 3000 level.
· However, with the daily RSI flattening out just a tad below the overbought region, further strong gains could still be hard to come by; if anything, we believe that selling into strength could still be a key theme this week.
· In addition, while overall volume climbed 16% with 1.45b units done, total value fell 7% to S$0.99b, as the average value/unit tumbled 20% to S$0.68, suggesting that the focus is back on the penny stocks once again.
· Investors are also likely to keep a close watch on the results from the two local banks due Thursday, where any disappointment could be used as an excuse to take profit on the broader market.
Research Team
(65) 6531 9800
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