Market Recap • US equities fell sharply for a second straight day as positive economic data spurred fears of Fed tapering in Sep. Reduced corporate forecasts also exacerbated sell-offs. • The Dow had consecutive day triple digit losses. All but two components fell with Cisco Systems (-7.2%) the worst performer. All ten sectors in the S&P 500 fell as the consumer discretionary and tech sectors fared the worst. NYSE composite volume was slightly higher at 3.3b (2.9b previously). • WTI Crude for Sep added 48 cents to end at US$107.33/barrel on supply concerns while Sep Brent finished 91 cents higher, or 0.8%, to expire at US$111.11/barrel. • Gold for Dec delivery gained US$27.50, or 2%, to end at US$1,360.90/ounce on safe haven purchases. Silver for Sep tracked gold higher, up US$1.14, or 5.2%, to end at US$22.93/ounce. Implications for Singapore • The sharp retreat on Wall Street overnight and the weak Nikkei start (down 1.3% now) are likely to spook the local bourse to a poor opening this morning. • Following a near 0.9% slip yesterday, the STI looks set to crack the lower boundary of its trading range at the 3200 psychological support today. • Meanwhile, the MACD has also initiated a sudden reversal downwards yesterday; this suggests that the downside momentum is picking up strength now. • Should the bearish break materialize, the index will likely head to the next base at the 3130 minor troughs. • On the upside, we still see the 3280 recent peak as the immediate obstacle, with the subsequent hurdle pegged at the 3320 support-turned-resistance.
Posted on: Fri, 16 Aug 2013 01:37:03 +0000
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