Little movements were observed in US equity markets last night, as Apple’s keynote event to promote its service segment via launching TV streaming provided little inspiration.
Apple’s share price closed 1.21% lower to US$188.7, sliding for a second day. Observers believed that its catch-up play in the entertainment service arena will not provide an immediate solution to make up for lower iPhone sales globally.
Technically, Apple has likely entered a correction as its momentum indicators RSI and DMI have both shown signs of being overbought. If price breaks down to US$182 support, the SuperTrend (10,3) is likely to reverse and open room for more downside.
Meanwhile, market sentiment remained cautious as 10-year US treasury yield declined further to below 2.4 percent amid rising growth concerns and expectation for rate cuts, leading the treasury yield curve to invert further. Not a healthy sign. Dollar index retraced a little to 96.0 area this morning, sending gold prices higher to the US$1,321 area, an immediate resistance level.
As US market stopped bleeding, Asian markets had a relief rebound this morning. Singapore’s STI surged one percent or 33 points at open, lifted by financials, technology, and conglomerates like Jardine Group. Singapore market exhibited resilience against US headwinds recently.
EU’s approval gives a breathing time for Brexit, but the extension from 29 March to 12 April is perhaps too short to allow a meaningful change in the deal, which has already been overwhelmingly rejected twice by the parliament. Meanwhile, there are over a million people gathering in London to call for a second referendum, adding uncertainties to the Brexit outcome. The UK parliament is going to hold several votes on Brexit this week, including another vote on PM’s withdrawal deal.
Market is also watching on the Boao forum today at Hainan province. China’s premier Li Keqiang will give an opening speech to address some of the key economic issues – China slowdown, belt and road, global trades in focus.
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