US was weak yesterday( a little bit down, where all other region start to have strong rebound ) with Fed’s comments about the economy likely to grow at a moderate pace. FOMC leave rates unchanged as inflation is still the greatest concern. The last few data release was not as rosy as expected and investors are factoring it into their valuations.
China dropped 4% yesterday due to concerns that it may be placing out a 200 billion bond that may suck up some liquidity from the market. The lingering fears that more capital controls measures are on the horizon are also affecting consumer sentiment. We’ll see some range trading for the short term.
Hong Kong will see some upside once China mobile finalizes the IPO launch in China. Otherwise the mid term resistance is at 22,000.
In Singapore, we seem to be bullish in the property and construction sector and there’s further upside to be seen. However it seems like it may be over inflated soon, recent papers have been harping about what happened in the property boom back in the 90‘s where speculators will buy 2-3 houses and in turn sell them off for a quick profit. This time it’s the foreigners that is buying the majority of the premium launches, so should the money flow out of Singapore we may be faced a similar situation like in the 90’s.
News Headlines
S'pore retail rents continue to climb in H1
NOL orders eight container ships worth US$1b
SPH's Paragon revalued at $1.82b
US durable goods demand falls 3% in May
China shares drop 4.03% on bonds jitters
Keppel Land signs MOUs for China projects
Lee Shau Kee seeks to sell Suntec Reit stake
Ascendas plans fund for its China projects
SingTel buys stake in Pakistani telco
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