Wall Street Update and Outlook
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Previous close
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Chg
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% chg
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DOW
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10,967.65
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22.93
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0.21%
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Nasdaq
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2,380.66
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-19.17
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-0.80%
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S&P
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1,159.97
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0
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0.00%
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Source: Yahoo Finance
Broader market trade lacked direction in the early going. Stocks were unable to build on the prior session’s big bounce mostly because of disappointment over the September ADP Employment Change.
Selling pressure picked up midsession, but both the Dow and S&P 500 were able to retrace the slide. For a time the Dow fractionally extended its five-month high, but the S&P 500 could not confirm the move. In the end, the Dow and S&P 500 closed flat while the the Nasdaq underperformed as large-cap tech issues acted as a drag.
Personal opinion: There are market moving economic data out today, as central banks in Europe, UK are meeting today to set interest rates; give an assessment of their economy etc. Coupled with the jobless claims tonight, markets are likely to be volatile.
Schedule of Economic News for the Day (SIN time)
08.30 am – AUD – Unemployment Rate
04.30 pm – GBP – Manufacturing Production m/m
06.00 pm – EUR – German Industrial Production m/m
07.00 pm – GBP – Official Bank Rate
07.45 pm – EUR – Minimum Bid Rate
08.30 pm – USD – Unemployment Claims
China will be closed till next Friday.
US / Overseas Economic News
1. The report indicated that private payrolls fell by 39,000 last month, but economists polled by Briefing.com had expected, on average, an increase of 18,000. On a positive note, data for the prior month was revised upward to reflect an addition of 10,000 payrolls.
2. German factory orders in August spiked 3.4% after they fell 1.6% in July.
US / Overseas Corporate News
1. NA.
US Corporate Results Update & The Week Ahead
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Companies
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Stk Symbol
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Actual
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Consensus
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Monsanto
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MON
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-0.09
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-0.06
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Source: Briefing.com
7 Oct before market opens PepsiCo
7 Oct after market closes Alcoa
Asian Markets Update on Previous Close
Asian: Asian stock markets notched up solid gains Wednesday after Wall Street’s rise Tuesday, with gold miners rising around the region after bullion prices surged to new highs and real estate companies gaining in Japan.
Australia’s SP/ASX 200 added 1.7% Japan’s Nikkei Stock Average climbed 1.8%, extending Tuesday’s 1.5% gain; South Korea’s Kospi Composite rose 1.3%, while Hong Kong’s Hang Seng Index added 1.1%. China’s markets remained closed for the Golden Week holiday.
Among other markets, New Zealand’s NZX-50 was 0.5% higher, Singapore’s Straits Times Index gained 0.9%, Malaysia’s KLCI rose 0.5%, Taiwan’s Taiex tacked on 1.0%, Indonesian shares were up 0.2% and Philippine shares gained 0.6%. In late trading, India’s Sensex rose 0.7% and Thailand’s SET added 0.9%.
STI Market Update on Previous Close and Outlook
STI: Singapore shares ended firmer at yet another fresh 28-month high Wednesday following a strong advance on Wall Street on better-than-expected economic data and speculation global central banks won’t raise interest rates as quickly as previously expected.
The benchmark Straits Times Index Tuesday closed 27.7 points, or 0.9%, higher at 3,190.07, setting a new 28-month high for the third day in a row. Gainers outnumbering losers 332 to 182, while in the broader market, 2.17 billion shares changed hands compared with 1.91 billion Tuesday
Personal opinion: STI is likely to be weaker following the lacklustre performance in Wall Street last night and disappointing ADP report. Nevertheless, oversold companies such as Renewable Energy and Wilmar continue to show strength due partly to short covering. Traders can also consider to position their trades (long trades) in companies which are going to release results next week.
STI supports and resistances are:
Current: 3,190.07
Support 1: 3,183
Support 2: 3,136 – 3,137
Resistance 1: 3,196 – 3,200
Resistance 2: 3,214
SIN / Asian News
NA.
SIN Companies News
1. Singapore developer and hotel operator Overseas Union Enterprise may be in focus after it priced its shares at $2.80 ($2.14) each in a S$337.4 million placement, representing an 8.2 percent discount to the previous day’s close.
2. Ziwo Holdings, which makes raw materials for foam products, plans to invest about 123.8 million yuan ($18.51 million) in a parcel of land in China and to expand its production facilities to meet rising demand for its products.
3. Property developer Japan Land said it expects to report a loss for the three months ended Aug 31, due to the loss of revenue from the termination of two contracts.
4. Offshore marine services firm Kreuz Holdings said it had secured a subsea installation contract worth about $7.6 million from a oil and gas business in the Middle East.
SIN Technical Highlights*
1. NA.
*This is to highlight stocks which are worth to look into from a technical standpoint for a small punt (i.e. with smaller gains over a shorter period of time) It involves speculation and may not meet the needs of certain clients. In addition, this strategy involves cutting loss if necessary. Thus, this mentality may not be suitable for some clients. Furthermore, entry and exit levels may change depending on market and chart conditions.
Commodities Update
Oil prices were down a bit at the start of pit trade, but they recovered to settle with a 0.5% gain at $83.23 per barrel in the face of bearish inventory data, which showed a build of 3.09 million barrels for the week ending October 1 when a build of just 413,000 barrels had been expected. At their session high oil prices were above $84 per barrel, which made for a five-month high.
Precious metals continued to climb. As such, gold prices settled 0.6% higher at $1347.70 per ounce and silver settled 1.3% higher at $23.04 per ounce. Ahead of pit trade the continuous gold contract set a new record high of $1349 per ounce, but the continuous silver contract set a new 30-year high of $23.19 per ounce in electronic trade following the close.
Despite their collective strength, the CRB Commodity Index ended just 0.3% higher.
All the best for your investment and trading!
Disclaimer
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