Singapore Stock Market News

Market Commentary: Mixed outlook for markets today

StockFanatic
Publish date: Mon, 27 Jul 2020, 08:30 PM
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·           Investors this week will be looking to the Federal Reserve's meeting for clues on what comes next for policy amid expectations for more accommodation ahead. That comes as wrangling continues in Washington over a stimulus bill.
·           US stocks fell on Friday, concluding a volatile week. The Dow dropped 182.44 points, or 0.68%, to 26,469.89. The S&P 500 slid 0.62% to 3,215.63. The Nasdaq Composite declined by 0.94% to 10,363.18.
·           Tech's struggles lead to weekly losses for indices, while gold rallied to a record. Since the 23 March low, the Nasdaq 100 has rallied 50% while the broader S&P 500 is up 40%.
·           The Fed's July 28-29 meeting could describe the turn the economy seems to be approaching. The US economic outlook has darkened in the past month, according a Reuters poll.
·           Things are looking more positive abroad. Gross domestic product growth in both the United States and Europe should take hits next year, according to Société Générale. Yet the firm projects a 5.2% rebound for EU growth in 2022, compared with a 2.5% bounce in the United States.
·           European markets closed lower on Friday as escalating diplomatic tensions between the world's two largest economies continued to weigh on sentiment.
·           Mainland Chinese stocks plunged after the latest escalation, with the Shenzhen component diving more than 4% to lead a broad downturn in Asian markets.
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