Finance

Volatility jumps and safe-haven demand surges, MSCI delays including A-shares

By Margaret Yang, CMC Markets Equities – It has been a bloodbath of a week for Asian equities, with Japanese equities hammered as the yen strengthened on safe-haven flows. The risk sentiment is getting increasingly cautious as the UK referendum on Europe draws closer. Separately, MSCI announced that it will delay the inclusion of China A-shares into the MSCI Emerging …

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Markets returns to a cautious mode ahead of the Fed and BOJ meetings

By Margaret Yang, CMC Markets Equities – Asian equities closed lower on Friday, ending a three-week rally. A cautious mood is surrounding the market, as nobody wants to take too much risk ahead of the FOMC and BOJ meetings this week. A stronger dollar and softened commodity prices are further reasons behind the selling. Crude oil prices fell 5% in …

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China central bank forecasts 6.8% growth, the dollar rebounds

By Margaret Yang, CMC Markets Equities – The Chief Economist of China’s central bank forecasts that the economy will grow by 6.8% in 2016, higher than the 6.5% growth estimated by both the IMF and the Asian Development Bank. The optimism has probably come from expansionary fiscal policy adopted by the policymaker, and accelerated investment into the real estate and …

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China trade balance consolidates, commodities extend gains

By Margaret Yang, CMC Markets Equities – China’s May exports rose 1.2% year on year in yuan terms, but were down by 4.1% in US dollar terms due to a 5.5% currency depreciation. Chinese exporters are facing the headwind of rising wages and a relatively strong yuan, making them less competitive. The weakness in exports also shows that the external …

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Energy stocks rise cheerfully as crude oil returns to $50

By Margaret Yang, CMC Markets Equities – Singapore shares rallied on Tuesday, as strong crude oil prices sent stocks higher. The Straits Times Index rose 0.6%, lifted by three local banks and O&G names such as Sembcorp Marine (+6.6%), Sembcorp Industry (3.2%) and Keppel Corp (+1.5%). OCBC bank gained 0.7% after it announced the sell-off of its life insurance business …

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Equities rally on rate-hike relief, commodities enter bull market

By Margaret Yang, CMC Markets Equities – A June rate hike has probably been ruled out due to the disappointing May jobs report. This shouldn’t, however, stop the Fed from raising rates this year. Last night, Fed Chair Yellen expressed that she is fairly sure the economy will improve enough to warrant another interest-rate increase, without committing on an exact …

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Non-farm payrolls big miss, gold rally as uncertainties rises

By Margaret Yang, CMC Markets Equities – Non-farm payrolls turned out to be a big miss on Friday, dampening market expectations of a June rate hike. Only 38k new jobs were added for May, as compared to market forecast of 160k, marking the slowest growth in the US job market since 2010. The unemployment rate dropped to 4.7%, the lowest …

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OPEC meeting in the spotlight, Nikkei falls with the rising yen

By Margaret Yang, CMC Markets Equities – Asian markets consolidated on the first trading day in June, as uncertainties surrounding the FOMC and Brexit started to dampen market optimism. The Chinese and HK markets both closed marginally lower on Wednesday due to mixed PMI data. The official China PMI stands above 50.0 for a third consecutive month, beating market expectations,  …

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Chinese market surges on MSCI hopes, GBP tumbles on Brexit polls

By Margaret Yang, CMC Markets Equities – The Chinese and HK markets surged on Tuesday, led by the securities sector, particularly Citic and Haitong. The Shanghai Composite rallied 3.3%, with higher volume. The most likely reason for this is market speculation on the possible inclusion of the A-shares into the MSCI index, a decision which will be announced this month. …

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Stocks rise on Yellen’s comments, Noble CEO resigned

By Margaret Yang, CMC Markets Equities – Federal Reserve Chairwoman Janet Yellen commented that a rate increase could be appropriate in the coming months if the economy and labour market were to continue to improve. This is generally in line with market expectations as a series of positive US economic data have led a number of Fed governors to take …

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