·Last week, business activity in the United States experienced a marginal slowdown in its expansion during the early part of September. Concurrently, expectations took a downturn, and a measure of received prices escalated to the highest level seen in six months.
·Meanwhile, the deterioration in the labor market, which influenced the Federal Reserve's decision for a substantial rate cut, also had a significant impact on consumer sentiment in September, leading to a sharp decline in confidence.
·Sales of new homes experienced a decline in August, despite the average 30-year mortgage rate falling by nearly 30 basis points. Part of this decrease can be attributed to a correction following the surge in sales witnessed in July.
·Initial jobless claims continue to suggest a relatively low rate of employee termination. However, given the recent increase in the unemployment rate, largely driven by an influx of workers - many of whom are undocumented and ineligible for unemployment insurance - these claims offer only a limited perspective on the current state of the labor market.
·On the back of the mixed data, we expect CSOPUMM to continue to deliver stable yield in the near term. As of 20240927, the fund has gross yield of 5.28% and net yield at 4.96%.^
Source: CSOP, S&P, The Conference Board, Department of Labor, Bloomberg, as of 20240927. ^ Gross yield is based on annualized yield of underlying holdings. 7-day net yield is calculated based on calendar days and NAVs in 5-decimal.
Disclaimers
“The investment product(s), as mentioned in this document, is/are registered under section 286 of the Securities and Futures Act (Cap. 289) of Singapore (the “SFA”).This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions. This document is not to be construed as recommendations to buy/sell any above-mentioned securities, or any securities in the above-mentioned sectors or jurisdictions.
CSOP Asset Management Pte. Ltd. (“CSOP”) which prepared this document believes that information in this document is based upon sources that are believed to be accurate, complete, and reliable. However, CSOP does not warrant the accuracy and completeness of the information, and shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. CSOP is under no obligation to keep the information up-to-date. The provision of this document shall not be deemed as constituting any offer, acceptance, or promise of any further contract or amendment to any contract. The information herein shall not be disclosed, used or disseminated, in whole or part, and shall not be reproduced, copied or made available to others without the written consent of CSOP.
Advice should be sought from a financial adviser regarding the suitability of the investment and/or investment product before making an investment. Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not necessarily indicative of future performance. Investor should read the prospectus and product highlights sheet, which can be obtained on CSOP website or authorized participating dealers, before deciding whether to invest. This document has not been reviewed by the Monetary Authority of Singapore.”
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