US indices extended gains last night ahead of US earnings season. Wal-Mart jumped 4.5% after releasing an optimistic outlook of its upcoming earnings and strategies, which indicate some 40% surge in its online sales in the next fiscal year. The company also announced a US$20 billion shares buyback plan.

These positive sentiments have spread over to Asian markets with most of Asia’s futures opening higher.

In the currencies market, the US dollar has shown sign of weakness while the Euro has rebounded sharply over the last two days. Dollar’s weakness allowed precious metals and crude oil prices to take a relief rebound after weeks of selloff. Technically, gold prices have completed a 61.8% Fibonacci Retracement at US$1,263 and since rebounded to US$1,288 area. Its trend indicator 10-Day Simple Moving Average line and SuperTrend (10,1.5) have both flipped upward, suggesting a potential trend reversal. Momentum indicator MACD is about to form a bullish crossover, which is usually a signal.

Gold - Cash

The International Monetary Fund (IMF) raised global growth forecasts for the next year, as the cyclical upswing in the world economy is gathering pace. The agency lifted its global economic output forecast to 3.7 per cent in 2018 with trade and exports activities continued to improve across regions. IMF believes that most countries and regions are benefiting from this tailwind except for Britain, whose growth is expected to slow down to 1.5% next year. This is mainly due to uncertainties associated to Brexit.

In Singapore, the Straits Times Index is moving towards a technical resistance level of 3,300.  Investors are waiting for the earnings season and this Friday’s advanced GDP data to paint a clearer picture of outlook. The STI has underperformed its regional peers and Singapore market remains to be the lowest in terms of valuation, and highest in terms of dividend yield in Asia.

Dow 3Q earnings table

NameTickerDatePeriodEstimate
JPMorgan Chase & CoJPM US10/12/2017Q3 171.653
UnitedHealth Group IncUNH US10/17/2017Q3 172.564
Johnson & JohnsonJNJ US10/17/2017Q3 171.797
Goldman Sachs Group Inc/TheGS US10/17/2017Q3 174.155
International Business MachinesIBM US10/17/2017Q3 173.28
American Express CoAXP US10/18/2017Q3 171.474
Verizon Communications IncVZ US10/19/2017Q3 170.975
Travelers Cos Inc/TheTRV US10/19/2017Q3 170.946
General Electric CoGE US10/20/2017Q3 170.498
Procter & Gamble Co/ThePG US10/20/2017Q1 181.073
McDonald's CorpMCD US10/24/2017Q3 171.752
United Technologies CorpUTX US10/24/2017Q3 171.681
Caterpillar IncCAT US10/24/2017Q3 171.219
3M CoMMM US10/24/2017Q3 172.213
Coca-Cola Co/TheKO US10/25/2017Q3 170.488
Boeing Co/TheBA US10/25/2017Q3 172.654
Visa IncV US10/25/2017Q4 170.848
Microsoft CorpMSFT US10/26/2017Q1 180.72
Intel CorpINTC US10/26/2017Q3 170.802
Merck & Co IncMRK US10/27/2017Q3 171.034
Exxon Mobil CorpXOM US10/27/2017Q3 170.85
Chevron CorpCVX US10/27/2017Q3 170.927
Pfizer IncPFE US10/31/2017Q3 170.643
DowDuPont IncDWDP US11/2/2017Q3 170.412
Apple IncAAPL US11/2/2017Q4 171.873
Walt Disney Co/TheDIS US11/9/2017Q4 171.228
Home Depot Inc/TheHD US11/14/2017Q3 181.806
Cisco Systems IncCSCO US11/15/2017Q1 180.6
Wal-Mart Stores IncWMT US11/16/2017Q3 180.972

Source: Bloomberg

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