US equity indices soared last night as political risks were largely removed after the Senate’s move to end the government shutdown. Market focus now shifts to the corporate earnings season.

US internet entertainment giant Netflix reported upbeat earnings last night, with its new subscription surging by 8.3 million or 18% comparing to a year ago. Netflix share price jumped 8.3% to US$246 in after-hour trading session. Today investors will have a packed calendar with Procter & Gamble, Texas Instrument, General Motor and Abbott announcing their earnings.

Singapore stock market opened higher following vivid US trading session last night. Offshore & marine names SembCorp Marine (+4.2%) and Keppel Corp (3.5%) continue to outperform as investors’ confidence boosted by higher oil prices and improved macroeconomic environment. The Straits Times Index is marching higher to 3,575 points, a level not seen since 2007. As fundamental elements improve alongside with earnings, fresh new high seems not too far away.

The next major resistance will be the 2007 peak of around 3,800 points. If the corporate earnings of CT, CCT, KEP and AREITs beat market expectation on the upside, there will be more room to go for the STI.


Earnings Calendar – US market

Forex traders are eyeing on the BOJ monetary policy statement today, in which majority of market participants expect no change in the policy stance. Against the backdrop of mild recovery and tepid inflation, the central bank is likely to maintain an accommodative monetary environment for an extended period of time in order to achieve its long term inflation target. Markets are likely to focus on any hints on the future directions in Governor Kuroda’s post meeting conference, during which the volatility may rise.

USD/JPY stay composed ahead of BOJ’s meeting at 110.93 area. Its immediate support and resistance level could be found at 110.5 and 111.3 area respectively. Technically, its 10-Day SMA and SuperTrend (10, 1.5) are both sloped downwards, indicating the trend remains bearish.


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