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US market regains ground following choppy session Inbox | | | | | From: NetResearch Asia [mailto:postman@netresearch-asia.com]
Sent: Friday, June 07, 2013 9:59 AM
To: NetResearch Asia 7 Jun 2013
Subject: US market regains ground following choppy session
DJIA: 15040.62 +80.03
Nasdaq Composite: 3424.05 +22.57
Good morning, fellow investors
It was a choppy trading session for US stocks on Thursday amid caution
ahead of the government’s monthly jobs report on Friday, concerns over
global growth as well as uncertain outlook on the Federal Reserve’s policy.
However, the three major stock indices regained ground, recovering from
earlier losses to close in the black.
Expectations of a disappointing job data due on Friday also led to a sharp
3% fall in the greenback against the yen during the session before
regaining some ground. Market is expecting the US economy to add 164,000
jobs in May while unemployment rate is expected to hold steady at 7.5%.
Ahead of the key job data on Friday, jobless claims fell 11,000 to 346,000,
marginally worse than expectations of 345,000 claims, but the four-week
moving average for new claims rose 4,500 to 352,500. Despite the choppy and
mixed readings, the data continues to signal moderate job growth. A
separate Challenger jobs report showed that the number of planned layoffs
at US firms fell 4.5% MoM and 41.2% YoY by 36,398 in May, the third
consecutive month of decline, signaling little impact from the government’s
fiscal austerity hampering the job market.
In Europe, the European Central Bank (ECB) left its key interest rate
unchanged a record low of 0.5%. Deposit rates was also left unchanged but
comments from the ECB head that the central bank is looking to lower the
bank's deposit rate into negative territory, signaling the lack of bank
lending which is dampening economic growth, led the European markets lower.
On that note, the ECB lowered its growth forecasts for 2013 to a
contraction of 0.6%, compared to an earlier forecast of a contraction of
0.5% but raised its GDP growth forecast for 2014 to 1.1% growth from 1.0%
previously.
The three major US indices rose with the Dow Jones Industrial Average
gaining 0.53% while the S&P 500 climbed 0.85% to 1622.56. The Nasdaq
advanced 0.66%.
Besides, the key government’s nonfarm payroll report due this Friday,
market will also take leads from a consumer credit report for an indication
of consumer spending behaviour.
Crude oil for July delivery added US$1.02 a barrel, or 1.09%, to settle at
US$94.76 a barrel.
In Singapore today:
Asian stock markets extended losses on Thursday as sentiment deteriorated
after mixed economic reports in the US heightened uncertainty pertaining to
the timing of scaling back of the Federal Reserve’s bond-buying stimulus
program and triggered selling pressure. Ongoing volatility in Japan’s
Nikkei 225 added to market jitters. Caution also prevailed ahead of key
monetary policy decisions by the European Central Bank which is widely
expected to keep interest rates unchanged from previously. Mirroring the
frail regional sentiment, Singapore shares tumbled afresh led by banks and
property shares. At closing, the STI index tumbled 49.92 points, or 1.54%
to 3193.51 points. For every stock that rose, 4.0 fell. Turnover was 2.5
bil shares with a value of $1.7 bil traded.
Sembcorp, which inaugurated its new US$1 bil independent water and power
project (IWPP) in Salalah, Oman, in May is preparing for an initial public
offering (IPO) of the IWPP's JV company on the Muscat Securities Market by
September 2013. The Salalah IWPP comprises a 445-megawatt gas-fired power
plant and a desalination plant producing 15 million gallons of water daily.
After the IPO, the Sembcorp Salalah Power and Water Company, in which
Sembcorp Utilities holds a majority 60% stake, will be diluted by 35%. The
other shareholders are Oman Investment Corporation with a 35% stake, and
Bahrain-based Instrata Capital with 5%.
Despite overnight gains on Wall Street, expect weakness on the local bourse
today as investors are likely to err on the side of caution, selling some
positions ahead of the key US jobs data due tonight.
1. Chartzones – 7 June 2013 (premium)
Conglomerate / Industrial and Property Stocks [read the report]
2. Singapore Banks - 2013 Quarterly Review (Part 3) (premium)
Wealth Management Income - Solid growth [read the report]
3. Chartzones – 6 June 2013 (free)
Consumer, Telecoms, Banks and Transport Stocks [read the report]
4. Chartzones – 5 June 2013 (premium)
Technology Stocks [read the report]
5. Chartzones – 4 June 2013 (free)
Media, China Stocks and Technology Stocks [read the report]
6. Chasen Holdings Ltd - 4Q13 results update (free)
Order flow is returning [read the report] | |
....
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