Daily Archives: January 7, 2016

7Jan
SGX

S&P: Sovereign downgrades likely to outpace upgrades this year

SINGAPORE:

  • Sovereign downgrades are likely to outpace upgrades in 2016, says Standard and Poor’s (S&P).
  • In its “Global Sovereign Rating Trends 2016” report, the ratings agency said that among the 131 sovereigns it rates globally, 25 had negative outlook against eight that were positive as of Dec 31, 2015.
  • “The outlook balance, positive minus negative outlooks, has dropped to minus 17 from the seven-year high of minus 4 in June 2015,” said S&P chief rating officer for sovereign ratings, Moritz Kraemer. “This constitutes the most negative six-monthly swing in the outlook balance since December 2008.”
  • In December 2015, S&P maintained Malaysia’s rating outlook at A- and stable, despite domestic and global developments.
  • Developments over the past year, ranging from the controversy surrounding state fund 1Malaysia Development Fund (1MDB), China’s policy shift and oil prices have not affected Malaysia’s economic prospects and fiscal balance sheet, S&P’s sovereign and international public finance ratings senior director Kim Eng Tan said.
  • “The key risk is political risk and even that has moderated,” Kim said, adding that growth projection remains robust with the sovereign rating agency expecting more than 4% this year and next.
  • Malaysia’s gross domestic product (GDP) expanded moderately by 4.7% in the third quarter of 2015.
    Malaysia’s fourth quarter and 2015 full-year GDP numbers will be announced in February.
  • S&P said the outlook distribution suggested that negative rating actions are likely to continue to outnumber positive actions over the coming 12 months.

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7Jan

Comex Trading Signals and Market News – 07 January 2016

INTERNATIONAL COMMODITY NEWS :

  • Brent oil prices fell to the lowest level since July 2004 on Wednesday, as worries over the health of the global economy added to the concerns that a global supply glut may stick around for longer than anticipated. On the ICE Futures Exchange in London, Brent oil for February delivery dipped 70 cents, or 1.94%, to trade at $35.72 a barrel as of 08:48 GMT, or 3:48AM ET, after sinking to $35.54, a level not seen in more than a decade.
  • Copper prices edged lower on Wednesday, after data showed that activity in China’s services sector grew at the slowest pace in 17 months in December, the latest indication that the world’s second-largest economy may be losing steam. The Caixin services purchasing managers’ index fell to 50.2 last month from November’s reading of 51.2, disappointing expectations for an uptick to 52.3.
  • Natural Gas futures were trading little changed in the domestic market during noon trade on Wednesday as traders weighed bearish weather forecasts which signaled that the current bout of frigid temperatures in the US East Coast are likely to give way to unusually warm weather by the end of the week while next week’s cold blast coming to the Midwest was looking slightly less severe than expected dimming the demand for gas-fired heating at offices and homes in the world’s biggest economy.

ECONOMY NEWS :

  • Japan services sector continued to expand in December, with a PMI score of 51.5, the latest survey from Nikkei revealed on Wednesday. That’s down marginally from 51.6 in November, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction. The composite index came in with a score of 52.2 in December, down from 52.3 in the previous month.
  • The services sector in China witnessed a mild expansion in December, the latest survey from Caixin showed on Wednesday with a 17-month low PMI score of 50.2. That’s down from 51.2 in November, although it remains barely above the boom-or-bust line of 50 that separates expansion from contraction. The composite index came in with a score of 49.4 in December, down from 50.5 in the previous month while turning to contraction.
  • Standard Chartered (L:STAN) is among three lenders that China’s central bank last week suspended from conducting some foreign exchange business until the end of March, two sources with direct knowledge told Reuters on Wednesday. Reuters reported on Dec. 30 that China’s central bank had suspended Deutsche Bank (DE:DBKGn) and two other lenders from conducting some of their foreign exchange business, China’s latest bid to stem capital fleeing the country in the face of a weakening yuan.

TRADING STRATEGY :

  • BUY GOLD ABOVE 1085 TARGET 1090 1096 SL 1079
  • SELL GOLD BELOW 1078 TARGET 1073 1067 SL 1084

For more information about Commodity market trading or Comex Signals, please visit EPIC RESEARCH PTE LTD.

7Jan

IForex Market Trading Signals and News – 07 January 2016

INTERNATIONAL CURRENCY BUZZ :

  • Forex -Yen higher after more weak China data, North Korea concerns
  • Forex -NZD/USD hits 1-month lows amid growth, Middle East concerns
  • Forex -AUD/USD drops to 3-week lows in cautious trade

EUR/USD
The dollar edged higher against the eur on Wednesday, as concerns over global geopolitical tensions continued to dampen demand for riskier assets. EUR/USD edged down 0.12% at 1.0734.Investors remained cautious after North Korea confirmed on Wednesday that it had conducted a nuclear test and said that it won’t give up nuclear capability unless U.S. abandons its hostile foreign policy towards the country.Markets were also jittey amid growing tensions between Iran and Saudi Arabia, following the execution of a prominent Saudi Shia cleric. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.10% at 99.56.

GBP/USD
The pound dropped to a nine-month low against the U.S. dollar on Wednesday, after data showed that U.K. service sector activity expanded at a slower rate than expected in December and as market sentiment remained under pressure.GBP/USD hit 1.4620 during European morning trade, the pair’s lowest since April 2015; the pair subsequently consolidated at 1.4638, shedding 0.22%. Cable was likely to find support at 1.4563 and resistance at 1.4725, Tuesday’s high. Research group Markit said its U.K. services purchasing managers’ index fell to 55.5 last month from a reading of 55.9 in November. Analysts had expected the index to dip to 55.6 in December. Meanwhile, investors remained cautious after North Korea confirmed on Wednesday that it had conducted a nuclear test and said that it won’t give up nuclear capability unless U.S. abandons its hostile foreign policy towards the country.

RECOMMENDATION :

  • BUY GBP/USD ABOVE 1.4660 TARGET 1.4680 1.4710 SL 1.4630
  • SELL GBP/USD BELOW 1.4630 TARGET 1.4610 1.4580 SL 1.4660

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7Jan
sgx

Financial Sgx Singapore Stock Market Trading Picks And News – 07 January 2016

MARKET UPDATES :

  • The Straits Times Index (STI) ended 29.96 points or 1.06% lower to 2804.27, taking the year-to-date performance to -2.72%.
  • The top active stocks today were SingTel, which declined 1.40%, DBS, which declined 0.86%, Keppel Corp, which declined 3.41%, UOB, which declined 0.79% and Global Logistic, with a 1.48% fall.
  • The FTSE ST Mid Cap Index declined 0.65%, while the FTSE ST Small Cap Index declined 0.54%.
  • The outperforming sectors today were represented by the FTSE ST Real Estate Investment Trusts Index, which closed unchanged. The two biggest stocks of the Index – CapitaMall Trust and Ascendas REIT – ended 0.77% lower
    and 0.44% higher respectively.
  • The underperforming sector was the FTSE ST Technology Index, which slipped 3.56%. Silverlake Axis shares declined 6.25% and CSE Global remained unchanged.
  • The three most active Exchange Traded Funds (ETFs) by value today were : Is Msci India 100 (-1.65%), Sti Etf (-0.69%), Dbxt Ftse Vietnam Etf 10 (+0.44%)
  • The three most active Real Estate Investment Trusts (REITs) by value were : Ascendas Reit (+0.44%), Capitamall Trust (-0.77%), Suntec Reit (unchanged).
  • The most active index warrants by value today were : HSI21200MBePW160128 (+23.48%), HSI22000MBeCW160226 (-17.90%), HSI21600MBeCW160128 (-28.40%)
  • The most active stock warrants by value today were : UOB MB eCW160704 (-7.14%), KepCorp MB ePW160901 (-0.83%), KepCorp MB eCW160902 (-20.88%)

STOCK RECOMMENDATION :

  • BUY ASCENDAS-H TRUST ABOVE 0.770 TARGET 0.800 0.830 SL 0.740

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