Singapore’s Feb inflation dropped by 0.8% YoY, its 16th consecutive negative month since Nov 14. This was mainly due to a softening rental market as well as weakening COE (Certificate of Entitlement for private road transport). Negative inflation indicates that the demand for accommodation and transportation was dampened by slower economic activity.
The country’s rental of private residential properties had already fallen by 4.6% in 2015. On the other hand, core inflation (inflation excluding the cost of accommodation and private road transport) rose 0.5% YoY as domestic services cost saw a stronger pick up.
Equity markets were marginally down last night as commodities lost steam; the SPX closed 0.64% lower whereas the Nasdaq lost 1.1%. The recent rally may face some selling pressure ahead as US indices have reached key resistance levels. Crude oil failed to break above $40 and retraced back to $38.2.
Major markets (US, EUR, NZ, AU, CAD, and SG) will be closed tomorrow for the Easter Holiday.
US SPX 500 – Cash
Key levels to watch:
- Immediate resistance level – 2082
- Immediate support level – 2010
- MACD dead crossed – may continue to consolidate