• About Us
    • Fact Checking Policy
    • Ownership & funding information
    • Volunteer
  • Subscribe
  • Letter submission
    • Submissions Policy
  • Contact Us
The Online Citizen Asia
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
The Online Citizen Asia
No Result
View All Result

UK’s PMI disappoints, US equities extend rally

by onlinecitizen
25/07/2016
in Finance
Reading Time: 2 mins read
0

Image from shutterstock

By Margaret Yang, CMC Markets

Britain’s manufacturing PMI came out far below expectation on last Friday, a sign that the UK’s economy is probably facing downward pressure one month after the vote to leave the EU. The PMI data dropped to 7-year low to 49.1 as compared to the forecast of 50.0. A reading below 50.0 usually suggests industry contraction.

The UK service PMI was also discouraging – a 47.2 reading was far below the consensus forecast of 49.2, adding concerns over the economic outlook. Sterling fell over 100 pips against USD right after this announcement.

Most of Asia’s emerging currencies edged up on Friday as optimism on the BOJ’s stimulus plan started to fade. The Chinese yuan is on track for its largest weekly gain after the offshore CNH touched a six-year low of 6.70 against USD early this week.  The Chinese central bank set the mid-point of onshore renminbi 300 points higher last Wednesday despite a stronger US dollar, which proved their determination to defend the yuan from falling too fast.

Crude oil declined as Iraq crude exports are on the rise whereas the glut in petroleum persists. The WTI crude oil Sep contract fished at a three month low of $44.25. The immediate support level is around $43.75 area.

US corporate earnings saw more positive surprises than negative ones, but valuation of the S&P 500 index stands at the highest level since 2009. A dovish FOMC statement and robust US economic indicators are very much needed to support this rally.

The US dollar strengthened against its major peers: JPY, GBP and EUR. A stronger dollar index weighed on gold and silver prices. However, the upcoming FOMC meeting and BOJ decision this week may heighten the market risks and lead to rising uncertainty. Perceived safe-haven assets including treasuries, gold and silver may end the consolidation phase sooner than expected.

Volatility Index Aug 2016

market25072016

Margaret Yang Yan, CFA, is a market analyst for CMC Markets Singapore.

For just US$7.50 a month, sign up as a subscriber on The Online Citizen Asia (and enjoy ads-free experience on our site) to support our mission to transform TOC into an alternative mainstream press.

Related Posts

Level of unemployment in Indonesia shows failure in the Job Creation Law, says KSPI
Indonesia

Level of unemployment in Indonesia shows failure in the Job Creation Law, says KSPI

02/02/2023
Commentaries

The Keppel bribery scandal tests Singapore’s zero-tolerance policy towards corruption

02/02/2023
Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives
Singapore

Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

02/02/2023
US businesses ‘fear internet curbs in Hong Kong’
AFP

Hong Kong offers free flights after COVID isolation

02/02/2023
Why is Gautam Adani’s Indian empire in turmoil?
AFP

Why is Gautam Adani’s Indian empire in turmoil?

02/02/2023
India’s Adani shares plunge again after stock sale cancelled
AFP

India’s Adani empire loses more than US$100 bn after fraud claims

02/02/2023
Subscribe
Connect withD
Login
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
Connect withD
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
0 Comments
Inline Feedbacks
View all comments

Latest posts

Level of unemployment in Indonesia shows failure in the Job Creation Law, says KSPI

Level of unemployment in Indonesia shows failure in the Job Creation Law, says KSPI

02/02/2023

The Keppel bribery scandal tests Singapore’s zero-tolerance policy towards corruption

02/02/2023
Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

02/02/2023
US businesses ‘fear internet curbs in Hong Kong’

Hong Kong offers free flights after COVID isolation

02/02/2023
Why is Gautam Adani’s Indian empire in turmoil?

Why is Gautam Adani’s Indian empire in turmoil?

02/02/2023
India’s Adani shares plunge again after stock sale cancelled

India’s Adani empire loses more than US$100 bn after fraud claims

02/02/2023
Former political prisoners calls for abolishment of ISA and apology from PAP Govt on 60th anniversary of Operation Coldstore

Former political prisoners calls for abolishment of ISA and apology from PAP Govt on 60th anniversary of Operation Coldstore

02/02/2023
Indian state picks new capital after kicking out Singapore consortium

Indian state picks new capital after kicking out Singapore consortium

02/02/2023

Trending posts

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

by Yee Loon
30/01/2023
25

...

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

by Yee Loon
26/01/2023
24

...

Two Indian nationals paid about S$330 and S$730 respectively for forged certificates submitted in their S-Pass application

MOM found issuing EPs meant for foreign PMETs to PRC waitress and general worker

by Correspondent
26/01/2023
41

...

They have done a fine job of confusing us about the jobs situation

They have done a fine job of confusing us about the jobs situation

by Augustine Low
01/02/2023
32

...

Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud

Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud

by The Online Citizen
26/01/2023
59

...

Indian rupee falls 60% since signing of CECA while Singapore becomes top investor in India

by Correspondent
25/01/2023
69

...

July 2016
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031
« Jun   Aug »

The Online Citizen is a regional online publication based in Taiwan and formerly Singapore’s longest-running independent online media platform.

Navigation

  • Editorial
  • Commentaries
  • Opinion
  • Politics
  • Community

Support

  • Contact Us
  • Letter submission
  • Membership subscription

Follow Us

  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • Fact Checking Policy
  • Privacy Policy

© 2022 - 2023 The Online Citizen Asia

No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Comments
  • Current Affairs
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Civil Society
    • Arts & Culture
    • Consumer Watch
    • NGO
  • Politics
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
  • Lifestyle
    • Travel
  • Subscribers login

© 2022 - 2023 The Online Citizen Asia

wpDiscuz