US equities earnings

US corporate earnings released so far this week have, on the whole, beaten or met estimates - albeit largely reduced expectations. Whilst dollar strength concerns have been a point of contention for names with a strong international exposure, these companies have proven able to adjust and hedge out currency risks better than they had in the previous quarter. Companies, for example, including Microsoft, Proctor & Gamble and Caterpillar have adjusted well not only to currency issues, but also to an overall decline in general business conditions outside the US. Another ongoing theme in this week’s reports also is that of an improving domestic market. Starbucks Corp, for one, said last night after the markets’ closed that sales at its coffee shops in the Americas region had grown more than expected. Shares in the coffee chain jumped more than 5% in after-hours trading. Overall, the US SPX500, together with the other key US equity indices, has underperformed against most major peers in Europe and Asia, both on a local currency and USD basis. From the technical perspective, the US S&P500 has the potential to form a triple top. A break and close through 2120, however, could see the market power through all-time highs!

USD/SGD

The set up for the Dollar Sing looks interesting here. The sell-off over these past weeks has been largely on the back of data releases showing that the Singapore economy may not be as bad as expected. First we saw GDP numbers coming in better than estimated last Tuesday. This was followed late last week by a stronger NODX read. Through this period, we also had MAS come in to say that they will keep policy unchanged. This may have gone against the grain of market expectations, that a continually easing stance may have been the likely message in the scheduled release last week. Today’s read of the Industrial Production numbers - out at 1 pm local time - could trigger a move from here. Looking at the charts, with considerable downward momentum gathered over the last six weeks, traders may be eyeing the 1.34 psychological level as a first support or the stronger Fibo level of 1.3345 support. Failure to break these could see an initial push back towards 1.35 and beyond.
IMPORTANT NOTE AND DISCLAIMERSMarket OpinionsAny 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 InformationThe 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.DistributionThe 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 PartiesCMC 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 NoteEach 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.