Inflation hit another 40-year record high... data doesn't lie...
This week, could open high with Dow Jones Index closed 658 points positive to end the week but the sell pressure might increase ahead of FOMC meeting on 26-27July
🌀 Focal Point 1:
How to read the economic data released last week...
GBP (Great British Pound)
GDP (YoY) : 3.5% (prv 3.7%)
Manufacturing Production (MoM) May : 1.4% (prv -0.6%)
USD (Unit State Dollar)
CPI (YoY) : 9.1% (prv 8.6%)
Crude Oil Inventories： 3.254M (prv 8.235M)
PPI (YoY) : 11.3% (prv 10.9%)
Retail Sales (MoM) : 1.0% (prv -0.1%)
SGD (Singapore Dollar)
GDP (YoY) : 4.8% (prv 4%)
CNY (Chinese Yuen)
GDP (YoY) Q2 : 0.4% (prv 4.8%)
Chinese GDP YTD (YoY) : 2.5% (prv 4.8%)
Industrial Production (YoY) : 3.9% (prv 0.7%)
To Investors :
From the above data released last week, the economical equilibrium has for sure been upset... with CPI increased to 9.1% even after 3 consecutive increase of interest rate since May... come along a question: Will the increase of interest rate on USD lose its effect on the prices of commodities?
USD can't afford to lose its global status as the most traded currency in the world. As such, the world currencies are currently facing tremendous pressure from the appreciating USD, and some countries chose to counteract by reducing their holding of US treasury bills.
Many economists had already forecasted the world recession is unavoidable if U.S. insists to push its rate further on expense of the global recovery. Hence, I hope investors can budget well and avoid commitment of very big ticket items in the times of uncertainties.
Energy prices surged 7.5% on the month and were up 41.6% on a 12-month basis. The food index increased 1%, while shelter costs, which make up about one-third of the CPI rose 0.6% for the month and ... (Source: www.cnbc.com)
🌀 Focal Point 2:
The third G20 finance leaders and central bank governors meeting kicks off on the Indonesian island of Bali on 13th Jul, and ended on 16 Jul. And soaring inflation, global food shortages and debt pressure on low-income countries had been broadly discussed. Honestly, such meeting has limited impact to the news-sensitive stock market but it dropped hints of what matters most now.
Gold price dropped to recent new low... should buy on dip? My forecast is to buy after entering the month of August but sell when November come.
MAS tightens monetary policy stance to help slow inflation, should able to give support to asset prices include COE premium as well as the property markets, but it also implied that the cost of living will hit new high.
"Nothing is impossible."📌
Focus Point : Blockchain, NFTs and the Metaverse
Another crypto firm collapsed... to me, this is called market consolidation.
Yahoo Finance’s David Hollerith joins the Live show to report that cryptocurrency company Celsius has filed for bankruptcy. (Source: finance.yahoo.com)
Other links: OpenSea cuts 20% of staff as crypto layoffs continue
Other Focus (Results and Highlights of Corporate Actions):
Philippines' Emperador lists on SGX main board Genting Singapore draws takeover interest from MGM Resorts.
Keppel Corp and KIT to invest $233.6 mil in European onshore wind energy portfolio.
Keppel to pilot Singapore's first membrane-based nearshore floating solar PV system at Jurong Island
Singapore Post expects operating loss for post and parcel segments in 1Q
UOB Kay Hian analysts keep Wilmar's 2QFY2022 earnings estimates intact at US$300-US$330 mil ahead of results
Top Glove's Lim Wee Chai loses billions after 89% stock crash
MAS tightens monetary policy stance to help slow inflation.
IMF to cut global growth outlook 'substantially' at next review
Sora is at year-high (*)
Coming Market Focus (Extract):
Sunday, July 17, 2022 | |
SGD | Non-Oil Exports yoy mom Trade Balance |
Monday, July 18, 2022 | |
JPY | Japan Holiday: Marine Day |
AUD | RBA Meeting Minutes |
Tuesday, July 19, 2022 | |
USD | Building Permits Jun |
USD | Housing Starts Jun |
USD | API Weekly Crude Oil Stock |
Wednesday, July 20, 2022 | |
GBP | CPI yoy Jun, PPI Input mom Jun |
USD | Existing Home Sales Jun |
USD | Crude Oil Inventories |
Thursday, July 21, 2022 | |
USD | Initial Jobless Claims |
USD | Philadelphia Fed Manufacturing Index Jul |
SGD | URA Property Index qoq Q2 |
CNY | GDP yoy qoq (Q2), Industrial Production yoy (Jun) |
Friday, July 22, 2022 | |
GBP | Retail Sales mom Jun, Services & Manufacturing PMI Jun |
USD | Services & Manufacturing PMI Jun |
p.s:
Next FOMC Meetings 2022; July. 26-27
Investment Tips 💡 this month (July 2022🦉:)
Please see my Feng Shui Market Forecast for the 2nd half of 2022
Conclusion: Any possible growth in 2nd half of 2022 is likely to be continue masked with increasing pain from inflation. And commodities prices will be getting very volatile under the high interest rate environment, as the increasing consumption of energy will make the demand stronger in these extreme hot weather.
Therefore, investors should take shorter term of views in the remaining months of 2022.
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