Towards Financial Freedom
DBS Equity Research: Wired Daily 18 Dec 2015
Attempt at Capricorn Rally likely short-lived, STI short term resistances 2900, 2860
US stocks fell with major indices giving back most of the previous day gains as the initial relieve that FED has finally started the rate hike cycle following months of intense anticipation faded. The rate hike shows FED's confidence in the US economy but there's also the uncertainty of how fast rates will go up. Currently, consensus and FED median forecast differs by about 50bps.The FED's median forecast is for the Fed Funds rate to rise further by up to 100bps by end-2016 while consensus expects just a 50bps increase. Our observation is that during the previous rate hike cycles, the subsequent 1-3 months post first rate hike is negative for US stocks before things get better.
Stocks should start the session softer on the back of the overnight fall on Wall Street. Heading to the end of the year, we believe that any attempt at a 'Capricorn Rally' will be short-lived. The shadow of higher interest rates, more earnings disappointments during the upcoming 4QFY15 results season and uncertain growth outlook next year could be a near-term drag for equities. Short-term resistance for the STI is at slightly above 2900, immediate resistance 2860. Stocks could start the New Year with a 'thud' rather than a 'BOOM'.
Singapore's Nov non-oil domestic export (NODX) fell a worse-than-expected 3.3% y-o-y, worse than expectations for a 1.5% increase. The International Enterprise Singapore blamed "the contraction in non-electronic NODX that outweighed the increase in electronic NODX", for the drop in November's NODX. Pharmaceuticals slipped 12.5% last month after a 44.6% surge in October. Electronic NODX bounced back from a 3.2% fall to a 0.7% rise last month.
Source: DBS
More articles on Towards Financial Freedom
Duty Free International Ltd. - A duty-free giant in the making
Created by kiasutrader | Oct 17, 2016
Cityneon Holdings - 'Avengers' showcasing in the Land Down Under
Created by kiasutrader | Jun 07, 2016
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
New Update. Discover investment communities that resonate with your ideas
Trade Confidently & Analyze Charts Conveniently - Download VCPlus IOS & Android App Now!
Latest Videos
Apps
Top Articles
1
SGX Market Updates
STI Dollar Cost Averaging Yields Indicative 5.7% CAGR Since 2019
2
THE SINGAPOREAN INVESTOR
Key Takeaways from the 9th Annual REITs and Real Estate Investment Summit 2024
3
CEO Morning Brief
Singapore Rental Pilot Suffers New Setback as ‘low’ Bid Rejected
4
CEO Morning Brief
Singapore Set to Charge Tycoon Ong Beng Seng Over Ex-minister Case
5
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
