The S&P 500 index slid for a third day, dragged by financial (-0.9%) and utility (-0.68%) sectors.
Market sentiment has been weighed by news that the FBI is probing possible ties between Russia and Donald Trump’s presidential campaign, according to FBI director James Comey in a House intelligence committee hearing last night.
In the UK, Prime Minister Theresa May confirmed that she will trigger Article 50 on 29 March, which will kick off the two-year Brexit negotiations with Brussels. Thus, the UK’s exit from the European Union single market will complete by 29 March 2019. Sterling dropped mildly following the announcement last night but erased some losses in Asian trading hours this morning. GBP/USD is now trading at the 1.237 area, with the immediate support and resistance levels at 1.230 and 1.243 respectively.
Singapore’s stock market rally was slammed yesterday by a renewed wave of concerns over the oil and gas sector following Ezra’s filing of bankruptcy during the weekend. Market participants are worried that Ezra will become the second Swiber, which defaulted on its debt obligations last year. The share prices of three local banks were pulled down by rising concerns on their non-performing loans.
Hong Kong had the best performing market in Asia this week. The Hang Seng Index is now challenging key resistance levels at around the 24,570 area, which is 138% Fibonacci Extension level. If the index could break out above this level, the next Fibonacci level will be at the 25,440 area.
Hong Kong 50 - Cash
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