Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

China, the Fed, Crude and Singapore Equities

CMC Markets

China continued its five-day upward track. Major Chinese indices closed up as much as 3% yesterday. So far in the last week, the China A50 has chalked up an almost 10% gain and is testing key resistance here. Although it has broken the 11,140 early March high, it needs to build a base here before it is able to stage a fresh assault of the January high of around 12,000. Premier Li Ke Qiang weekend’s press conference could have provided the spark for the strong move in Chinese stocks yesterday. He reiterated that the 7% growth target is a realistic figure, albeit one that the Chinese will have to work hard to earn. Furthermore, he reinforced the government’s commitment to making the target, citing their flexibility in policies and the many options that they have to help the economy power on.

Fed Watch

Over at Fed Watch, the debate has been brewing over a word. The word is ‘patient’ and the debate, as to whether it will be removed from the usual rhetoric the Fed is expected to offer this week. Stocks in the US and Europe had a banner day to kick off the new week with the Dax breaking through 12,000 to a new all-time high and the Dow posting a 200-plus point gain on the day. Some pointed to the lower-than-expected US Industrial Production Numbers that may have led to the short covering in stocks.


Crude had another dreadful session overnight with January lows tested. While the reason for the sell down last night can again be pointed to supply-side worries, the capitulation of the last four days could also be due to trades being systematically stopped out after US$49 was breeched. That said, this current low of around US$43.5 is now a critical support.

Singapore Equities

‘Oil’ plays continue to lead trading themes this week. On the positive side, transportation and logistics names like SIA, Tiger Air, Comfort Delgro, SMRT, NOL and Singpost could see buyers; while Keppel Corp, Sembawang Marine, Ezion and Ezra may remain under pressure.
IMPORTANT NOTE AND DISCLAIMERS Market Opinions Any opinion(s), news, research, analyses, prices, or other information contained on this website / document is provided as general market commentary and are from publicly available resources or otherwise obtained, and does not constitute investment advice nor does it seek to market, endorse, recommend or promote any investment or financial product. CMC Markets Singapore Pte Ltd. (Reg No./UEN: 200605050E) (“CMC Markets”) will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Accuracy of Information The content is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. CMC Markets has taken reasonable measures to ensure the accuracy of the information, however, does not guarantee its accuracy, and will not accept liability for any loss or damage. CMC offers no financial advisory services in any of the content or vouch for the veracity of any information. Distribution The content of this publication is not intended for distribution, or use by, any person in any country where such distribution or use would be contrary to local law or regulation. None of the services or products referred to or mentioned are available to persons residing in any country where the provision of such services or investments would be contrary to local law or regulation. It is the responsibility of the reader to ascertain the terms of and comply with any local law or regulation to which they are subject. Third Parties CMC Markets may provide you with opportunities to link to, or otherwise use, sites and services offered through or by third-party(ies). Your use of these third-party services is subject to such terms as posted by these third-party(ies). We have no control over any third-party site or service and we are not responsible for any changes to any third-party service or for the contents thereof, including, without limitation, any links that may be contained in or accessible through such third-party service. These links are provided solely as a convenience to you. You will need to make your own independent judgment regarding your interaction with these third-party sites or services. Our inclusion of advertisements for, or links to, a third-party site or service does not constitute an endorsement of any of the representations, products or services listed therein. Important Note Each reader/recipient agrees and acknowledges that: (a) no express undertaking is given and none can be implied as to the accuracy or completeness of this document; (b) this document does not constitute in any way a solicitation nor incentive to sell or buy any Shares, Stock Options and Contracts For Difference (CFDs) and similar and assimilated products; (c) each reader/recipient of this document acknowledges and agrees to the fact that, by its very nature, any investment in Shares, Stock Options, CFDs and similar and assimilated products is characterised by a certain degree of uncertainty; that consequently, any investment of this nature involves risks for which the reader/recipient is solely responsible and liable. It is to be noted that past performance is not necessarily indicative of future results. In this respect, past performance of a financial product do not guarantee any and are not an indication as to future performance; (d) the use and interpretation of this document require financial skill and judgement. Any utilisation whatsoever by the reader/recipient, relating to this document, as well as any decision which the reader/recipient may take regarding a possible purchase or sale of Shares, Stock Options, CFDs and similar and assimilated products, are the sole responsibility and liability of the reader/recipient who acknowledges and agrees to this as a condition precedent to and prior to any access to this document; (e) as a result of the above, all legal liability directly or indirectly arising whatsoever.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.