August CPI surprised the market, indexes plunged with the risk-off mode on overnight.$DJIA(.DJI)$$NASDAQ(.IXIC)$$S&P 500(.SPX)$We believe there are three factors relevent to this inflation:Oil price. It's the beginning of the inflation. Although the decline in oil prices in August will drag down some upwards, the price of other items completely offset the decline and exceeded market expectatio
Market Summary THE Straits Times Index (STI) rose 11.77 points or 0.4 per cent to close at 3,274.72 on Monday (Sep 12), buoyed by the momentum of gains in the US and Europe at the end of last week. In the wider Singapore market, gainers outnumbered losers 214 to 146, with 966.9 million shares worth S$717 million changing hands. Elsewhere in Asia, Japan’s Nikkei 225 index gained 1.2 per cent, Australia’s S&P/ASX 200 index ended 1 per cent higher, the Jakarta Composite Index rose 0.2 per cent, and the FTSE Bursa Malaysia KLCI edged up 0.1 per cent. The biggest winner among Singapore’s index stocks on Monday was Yangzijiang Shipbuilding (YZJ), which climbed 3.7 per cent or S$0.035 to close at S$0.97. YZJ was also the most heavily traded counter among the STI constituents, with 38.8 m
$Straits Times Index(STI.SI)$is effected by CPI report due to market sentiment.So if the US market is down, STI have similar move, however STI is not so volatile as the US market because STI volume is also much smaller than $NASDAQ(.IXIC)$Bearishor $S&P 500(.SPX)$BearishToday STI down by 0.05% while Nasdaq andSPX more than 1% It proof STI is still be effected by CPI report.Invest wisely my friends 💕
$Straits Times Index(STI.SI)$Let's focus on our own CPI before worrying about US CPI.On 23 Aug, Singapore reported core inflation (excludes private transport and accommodation) rose to 4.8% in July from 4.4% in June. This was driven by stronger electricity, food and gas prices. I appreciate the U-Save vouchers for utilities rebate very much now [Sly] - Previous high for core inflation was at 5.5% in Nov 2008.Singapore's headline consumer price index (overall inflation) rose 7% year-on-year in July, ahead of the 6.7% reported in June.It looks like Singapore's inflation has not peaked. After 23 Aug, STI dropped for two weeks, before rebounding in the past week. See First plot.- Closest r
It certainly will have an immediate impact as CPI reflects the larger macro environment, it impacts spending costs of doing businesses etc, but it will settle after a while as the markets take in the stats and adjust to reflect market value and prospects rather than just immediate CPI data.
$Straits Times Index(STI.SI)$The Feds have just increased interest rates today by 0.75%. This is the 3rd straight interest rate increase as the Feds are adamant on quelling persistent high inflation which is at 40 years high. Subsequently after the announcement, all 3 US Indexes closed lower as there is Fear in the markets that rising interest rates would lead to recession. Our local bourse was certainly affected as the STI was trending downwards today. However our 3 local banks were holding well. Rising interest rates will have a positive impact on the Net Interest Income of the banks. Locally Singapore has also experienced high inflation too but nothing as high as the
PMI fell to 49.9 in September, Singapore's manufacturing industry shrank for the first time in more than two years Economists pointed out that the central bank continues to raise interest rates hawkishly, increasing the risk of a global economic recession, the decline in market demand affects the electronics industry, which in turn drags down the performance of the overall manufacturing industry, and the Singapore economy faces the risk of a technical recession. Macroeconomic risks intensified as Singapore's manufacturing sector snapped a 26-month streak of expansion before falling into contraction in September. Among them, the decline in the electronics industry further expanded. The Federal Reserve raised interest rates, and global bond yields rose sharply. The first-year interest rat