US equities retraced alongside with the slippage in dollar, probably due to profit-taking activities as a result of delayed corporate tax cut. Although that the US House of Representatives voted to pass its initial version of the tax reform bill, but the outlook remains uncertain and the next step seems to be even more challenging.

Safe-haven basket – gold, silver and Japanese yen rallied on Friday evening, suggesting rising ‘risk off’ sentiment. This week, traders will be eyeing on Wednesday’s US durable goods and Thursday’s FOMC meeting minutes as a guide of central bank’s next policy shift.

In Singapore, higher-than-expected Singapore NODX reading in Oct led to a revenge rebound in equities last Friday. The Benchmark STI rose 1.23% or 41 points to 3,382 points, lifted by banks (DBS + 3.38%), Industrials (Keppel Corp +1.37%) and Consumer (Genting +3.03%) sector.

Singapore’s ‘catch-up rally’ will likely to carry on this week, underpinned by positive sentiment from major markets (US, HK, JP) and upbeat NODX data in Oct.

Meanwhile, investors need to monitor the crude oil price movement as a proxy to Singapore’s offshore & marine stocks. Currently crude oil price in in consolidation phase and market awaits for fresh updates from OPEC and Russian with regarding to their freeze plan to pain a clearer picture of the outlook.

Currently the WTI crude oil price is trading at the US$62.6 area. Technically the short-term trend remains bearish despite of a decent rebound on last Friday. Its 10-Day Simple Moving Average line and SuperTrend (10,2) are both sloped downwards, suggesting that bearish side is taking control. Its immediate support and resistance levels could be found at US$59.0 and US$64.3 respectively.

Hang Seng Index climbed 0.62% or 180 points to 29,199 points on Friday, extending gains following last week’s correction. Technology giant Tencent (+2.96%) continued to led the bull run in Hong Kong as market digests its eye-watering 61% yoy revenue growth in the third quarter. Rising Chinese sovereign bond yield boosted Insurance names such as Ping An Insurance (2318 HK), whose share price surged to record high of HK$ 78.85.

Technical Analysis:

Crude Oil Brent – Cash

  • The 10-Day Simple Moving Average and SuperTrend (10,2) are both sloped downwards, suggesting downward momentum
  • Immediate support and resistance levels at 59.0 and 64.3 respectively

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