Daily Updates
| US Dow Jones* | +91.12 |
| US NASDAQ* | +33.88 |
| Nikkei | -11.96 |
| STI | Up! |
| HSI |
*- Closing Figures
Morning,
US markets closed higher despite lackluster economic reports as investors look forward to an interest cut on Sept 18. Even with this recent drop in the stock market, US still trading up 7+% for the year. All eyes will be on the rate cut the following week; it’ll be volatile starting from next week as investor start to speculate on how much the rate will be cut by.
We were flat locally and regionally yesterday as we wait for more signals from US. US strong closing yesterday helped boost our sentiment and our market railed today, the STI index now is not accurately reflecting the correct value.
Local news will not be in concern for the next few days as we will be taking our cue from US. Though the sentiment now is decent, I would sell on profit and buy on weakness. Again I do not think the US market can recover in such a short period of time.
For the next few weeks, banks will be in the limelight, as Fed’s decision will indirectly affect them. Today will be a good example to sell strong in morning and buy back in afternoon if you wish. Shipping counters have been moving up due to freight price increase, but its cyclical and may drop as much in the later months as well. As previously said, I would lower my exposure to 50% and hold more cash as I wait for the Fed’s decision.
Also for those intending to buy into the HK market, China has some rumor that suggest it would be delaying the launch, as it would not benefit the China investor at its current valuations. What I expect is, they will only let the funds flow in after HK get hit from the global crunch, that is if it happens.