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
|JPMorgan Chase & Co||JPM US||10/12/2017||Q3 17||1.653|
|UnitedHealth Group Inc||UNH US||10/17/2017||Q3 17||2.564|
|Johnson & Johnson||JNJ US||10/17/2017||Q3 17||1.797|
|Goldman Sachs Group Inc/The||GS US||10/17/2017||Q3 17||4.155|
|International Business Machines||IBM US||10/17/2017||Q3 17||3.28|
|American Express Co||AXP US||10/18/2017||Q3 17||1.474|
|Verizon Communications Inc||VZ US||10/19/2017||Q3 17||0.975|
|Travelers Cos Inc/The||TRV US||10/19/2017||Q3 17||0.946|
|General Electric Co||GE US||10/20/2017||Q3 17||0.498|
|Procter & Gamble Co/The||PG US||10/20/2017||Q1 18||1.073|
|McDonald's Corp||MCD US||10/24/2017||Q3 17||1.752|
|United Technologies Corp||UTX US||10/24/2017||Q3 17||1.681|
|Caterpillar Inc||CAT US||10/24/2017||Q3 17||1.219|
|3M Co||MMM US||10/24/2017||Q3 17||2.213|
|Coca-Cola Co/The||KO US||10/25/2017||Q3 17||0.488|
|Boeing Co/The||BA US||10/25/2017||Q3 17||2.654|
|Visa Inc||V US||10/25/2017||Q4 17||0.848|
|Microsoft Corp||MSFT US||10/26/2017||Q1 18||0.72|
|Intel Corp||INTC US||10/26/2017||Q3 17||0.802|
|Merck & Co Inc||MRK US||10/27/2017||Q3 17||1.034|
|Exxon Mobil Corp||XOM US||10/27/2017||Q3 17||0.85|
|Chevron Corp||CVX US||10/27/2017||Q3 17||0.927|
|Pfizer Inc||PFE US||10/31/2017||Q3 17||0.643|
|DowDuPont Inc||DWDP US||11/2/2017||Q3 17||0.412|
|Apple Inc||AAPL US||11/2/2017||Q4 17||1.873|
|Walt Disney Co/The||DIS US||11/9/2017||Q4 17||1.228|
|Home Depot Inc/The||HD US||11/14/2017||Q3 18||1.806|
|Cisco Systems Inc||CSCO US||11/15/2017||Q1 18||0.6|
|Wal-Mart Stores Inc||WMT US||11/16/2017||Q3 18||0.972|
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