Market Updates

Trade wars + privacy breaches + more Trump resignations/sackings = more volatility

When Donald Trump assumed office as US president last January, the world braced itself for a trade war that he had promised with China. When none materialized in the subsequent months, markets drew a sigh of relief and turned their...

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Trade wars + privacy breaches + more Trump resignations/sackings = more volatility

In the meantime, Mr Trump’s withdrawal of the US from the TPP (Trans Pacific Partnership) agreement was dismissed as having not much consequence for the country. About 14 months after Mr Trump came into...

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All eyes on FOMC and its accompanying statement

The week just past lived up to expectations when trading here and on Wall Street underwent large bouts of volatility following uncertainty created by US President Trump’s tariffs on steel and aluminum. However, what was unexpected was one of the...

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Trade war worries + Cohn’s resignation = more volatility

Last week’s trading picked up where it left off the week before – towards the downside because of US President Trump’s announcement on 2 March of import tariffs on steel and aluminum, an announcement which kindled fears of a global...

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Trade war, inflation and interest rate concerns to set tone in FOMC month

The central feature of February’s trading in equity markets was that of a complacent Wall Street shaken by a sudden surge of worry over the pace of interest rate hikes which then led to a spike up in volatility.  Although...

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February market wrap – Volatility, GST hike and…market resilience?

February will be remembered for the return of volatility, the realization that stocks cannot keep rising indefinitely and the Government’s Budget in which it was announced that Goods & Services Tax will be raised from 7 to 9% sometime from...

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US inflation, month-end “window-dressing’’ to set direction

Last week’s report advised investors to keep an eye on movements in the US Treasury bond market because if the 10-year yield was to come close to or cross 3 per cent, Wall Street stocks could encounter heightened volatility as...

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Keep an eye on the 10-year US Treasury yield

Over the course of last week, the Straits Times Index gained 66 points or about 2 per cent at 3,44.51. This means that its 2018 gain is now 1.2 per cent, the entire amount coming on Thursday as it was...

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A “healthy correction’’?

When stocks plunge as they did last week, we often hear experts describe the falls as "a healthy correction" so as to suggest that normal upward service would resume shortly and that there’s...

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Beware the return of risk

Last week’s volatility on Wall Street including Friday’s large selloff should serve as a reminder that although all the forecasts for 2018 are bullish, there can be many pitfalls ahead, primarily from the US where risk has not featured for...

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