Netflix share price tumbled 14% in the after-hour trading following a mixed earnings report.

Higher net profit failed to support the price as its new streaming users and internet subscribers are both missing consensus forecast. This could catalyse broader sell-off in Asian technology shares today.

China’s GDP growth slowed down by 0.1% in the second quarter to 6.7%, signalling that the world’s largest economy is facing a challenging environment amid internal pain of deleveraging. The GDP reading, abeit largely in line with market expectation, has spurred declines in the Asian markets yesterday. Shanghai Composite lost 0.61% while Hang Seng Index closed marginally higher for the day. Japan market will resume trading today.

Brent crude oil price fell over 4% last night to around US$72 area after US Treasury Secretary, Steve Mnuchin, said some crude importers may receive waivers to continue buying Iranian crude oil. The relaxation of sanctions is expected to increase market supply, and thus suppressing oil prices. Besides, Saudi Arabia was also reported to increase supply, which capped the upside of crude oil prices. Technically, Brent oil price has formed ‘double top’ pattern with strong resistance level at US$80 per barrel. ‘Double top’ usually suggests more downside to come.

In Singapore stock market, risk-aversion sentiment prevails. Investors were seen to sell off bank, property developer and other cyclical stocks, and rush into defensive names such as telcos, healthcare and utilities. In view that Singapore’s second quarter GDP came below market expectation, and property cooling measures smashed property developers, cautious sentiment may well carry on until the earnings season delivers some positive surprises.

Crude Oil Brent - Cash

Singapore Blue Chips Earning Calendar – 2Q18

Source: Bloomberg

 

By Margaret Yang in Singapore

 

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