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Pndl1989mar Asia Pacific Equity Research | Singapore

MARKET COMMENTARY US & European Indices Close Dow Jones 18053.60

p

S&P500 Nasdaq FTSE 100 DAX CAC

Market Recap Chg 49.44

% Chg 0.27

2100.80

6.46

0.31

4940.33 6405.35 10349.59 4566.48

-19.68 51.83 229.28 59.64

-0.40 0.82 2.27 1.32

Research Team (65) 6531 9800 [email protected]

Technical Support/Resistance Levels Next Resistance 3000 Immediate Resistance 2980 STI Close 2951.81 Previous return +1.17% Immediate Support 2950 Next Support 2900

Market Statistics (SG) Volume Value No. of gainers No. of losers

Carey Wong (65) 6531 9808 [email protected]

Daily Market Brief 20 Apr 2016

1657.65m S$1280.22m 312 167



The Dow Jones Industrial Average finished firmly above the key 18,000 mark Tuesday, but U.S. stocks closed off of their intra-day highs as a slump in shares of large-cap tech firms, led by International Business Machines Corp., canceled out positive sentiment from stable oil prices and a string of better-than-expected earnings.



Eight of ten S&P 500 industries closed higher, led by Materials (2.13%) and Energy (1.88%) while Information Technology (-0.63%) and Consumer Discretionary (-0.48%) lost ground.



May WTI Crude added US$1.30, or 3.27%, to close at US$41.08/barrel while Jun Brent gained US$1.12, or 2.61%, to end at US$44.03/barrel.



Gold for Jun delivery rose US$19.30, or 1.56%, to finish at US$1254.30/ounce while May Silver climbed by 72 cents, or 4.42%, to settle at US$16.97/ounce. Implications for Singapore



While Wall Street eked out further gains overnight, the US index futures have started to come off slightly; hence further strong gains in the local bourse looks unlikely, especially after the STI’s strong 1.2% rebound yesterday.



Although the STI closed above the initial 2950 resistance, the recent strong run-up has nudged the daily RSI to just a shade below the overbought region.



As before, we think that the market would want to be sure that the index can sustain itself above 2950 before mounting an assault on the next key 3000 hurdle.



But any pullback could be relatively shallow, given that the medium-term technical picture has improved quite a bit; this as the 50-DMA has just cut up on the 100DMA; overall volume also jumped 34% yesterday, while average value/unit climbed 13% to S$0.77.

Sources: Reuters, Bloomberg, News agencies

Please refer to important disclosures at the back of this document.

MCI (P) 007/06/2015

OCBC Investment Research Market Commentary

Key events this week Fri (15 Apr 2016) Economic: Empire Manufacturing Industrial Production Capacity Utilization Michigan Sentiment-Prelim Net Long-Term TIC Flows Earnings: No significant releases

Actual

Consensus

Prior

9.6 -0.6% 74.8% 89.7 $72.0B

2.3 0.0% 75.5% 92.0 NA

0.6 -0.6% 75.3% 91.0 -$11.9B

Mon (18 Apr 2016) Economic: NAHB Housing Market Index Earnings: IBM

Actual

Consensus

Prior

58

59

58

2.35

2.08

2.91

Tues (19 Apr 2016) Economic: Building Permits Housing Starts Earnings: UnitedHealth Group Johnson & Johnson Goldman Sachs

Actual

Consensus

Prior

1086K 1089K

1200K 1170K

1177K 1194K

1.81 1.68 2.68

1.72 1.65 2.50

1.46 1.56 5.94

Wed (20 Apr 2016) Economic: MBA Mortgage Index Existing Home Sales Crude Inventories Earnings: Intel Coca-Cola Americans Express

Actual

Consensus

Prior

NA NA NA

NA 5.08M 6.634M

0.54

0.48 0.44 1.34

0.41 0.48 1.48

Thurs (21 Apr 2016) Economic: Initial Claims Continuing Claims Philadelphia Fed FHFA Housing Price Index Leading Indicators Natural Gas Inventories Earnings: Travelers Verizon Communications Microsoft Visa

Actual

Consensus

Prior

NA NA NA NA NA NA

253K 2171K 12.4 0.5% 0.1% -3bcf

2.54 1.06 0.64 0.66

2.53 1.02 0.61 0.63

Fri (22 Apr 2016) Economic: No economic releases Earnings: General Electric McDonald’s Caterpillar

Actual

Consensus

Prior

0.19 1.16 0.68

0.31 1.01 1.72

Source: Reuters, Bloomberg, News agencies

Key Events and Disclaimer

OCBC Investment Research Market Commentary

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Published by OCBC Investment Research Pte Ltd Key Events and Disclaimer

Published by OCBC Investment Research Pte Ltd