Kick-Off the second half... with sweaty palms
At the start of the second half in 2022, I want to change my market report from essay style of writing to pointer form, to increase the readability for busy people. Hope to hear more feedbacks for improvement from you.
🌀 Focal Point: Local 3 banks increased Home loan rate as followed:
DBS : Fixed rates on all home loan packages to 2.75 per cent per annum
UOB : Fixed rates for 2-year home loan packages are at 2.98 per cent per annum
OCBC : Fixed rates for 2-year home loan packages are at 2.65 per cent per annum
Others:
Citi: Fixed rates for 2-year home loan packages for Citigold clients is at 2.95 per cent annum
(the above dated 4 Jul 22)
SINGAPORE - Home loan rates in Singapore have gone past 3 per cent to a new high with the latest move by UOB. The previous high in recent times was 2.88 per cent in mid-2019.. UOB on Wednesday ...
Source: www.straitstimes.com
To Investors :
In 2022, I believed the increase of home loan interest will not so soon affect the investors in budgeting for their investment, and therefore the cash flow in the market should remain healthy in 2022.
But if the government fail to stimulate growth by year end and businesses continue hammered by the COVID situation, many investment instruments like stock and shares, unit trusts from the capital market may face a noticeable liquidation as more and more people hit by the higher home repayment loan.
🌀 Focal Point: Analysis reviewed on U.S. Market for first half of 2022, and all described it as "Worst first half for the market in 50 years“ and expect to get worst
The S&P 500 is off to its worst start to a year since the 1970s. The Nasdaq is doing even worse.
Source: fortune.com
Ever since the Fed increased its benchmark interest rate by 75 basis points and pushing the rate into a higher range of 1.5%-1.75% in June, the Fed Chair Jerome Powell has indicated that there could be another similar move in July.
At the other end of the weight scale, the bond market had been active with new issues last week and early this week with the following issues of higher coupon rates:
BNP PARIBAS issued @ 5.50%
Barclays PLC issued @ 8.600% 😱
ABN AMRO BANK issued @ 5.75%
To Investors :
In 2022, the rosy economy outlook had been dampened in Q2, with the surging rate announced by the Fed as followed, U.S. had entered into a technical recession.
Jan: Remain 0 - 0.25 basis point: Rate kept at range btw 0 - 0.25%
Mar: Raise 25 basis point: Rate kept at range btw 0.25% - 0.5%
May: Raise 50 basis point: resulted the rate in 0.75% - 1%
Jun: Raise 75 basis point: 1.5% - 1.75%
July: Expect to Raise 50 - 75 basis point
Officials expect interest rates to hit 3.4 percent by the end of 2022
Since the increase of rate is inevitably, the investors moving forward, need to take note the next Fed meeting will be held in July 26-27. And the stock movement before rate announcement which is 2-3 weeks away, will able to suggest that direction of the market.
I will watch out on it and continue my forecast timely as time goes by.
Life is a matter of choices, and every choice you make makes you 📌
Focus Point : Blockchain, NFTs and the Metaverse
As bitcoin continue to hover around US 20,000 mark, more news from the crypto-related companies facing liquidation and bankruptcy are reported. Therefore, the question comes; when can the crypto traders enter the market again... my call remain unchanged, I'm looking at the month of August.
To Traders:
If you still interest to trade crypto, I suggest Crypto Futures Trading is more suitable now but NOT FOR the reason of LEVERAGING.... but moving forward, you can only trade but not to own bitcoin as the volatilities will require you to be able in taking both long and short directions... and of course, better market liquidity.
My 17-years old daughter asked me when should she existed from her $500 worth of crypto assets, Shiba Inu coin, and I told her look at bitcoin @ $46,000 level (Yes, it happened early this year)... but when bitcoins hit this level in March, she told me, "Mummy, why the buy price and sell price so far away... can't sell at all because the platform include all the carbon fee and all other... baa baa baa, left nothing if I just take the buy price to sell..." So traders, to carry on trading on crypto, liquidity is very important.
As the matter of fact, Phillip has Crypto Futures and to open the Future Account online, you can click on the account opening URL link: https://bit.ly/33P8di4.... but please take note that I do not write the above for advertisement because trading crypto is simply involve too much risk.
HONG KONG: Singapore-based crypto lending and trading platform Vauld said on Monday (Jul 4) it would suspend withdrawals and trading and seek new investors, the latest sign of stress...
Source: www.channelnewsasia.com
Other link : Meta's shutting down its digital wallet, Novi
Other Focus (Results and Highlights of Corporate Actions):
Raffles Education CEO acquires 13.7 mil shares, upping stake to 34.57%
Second Chance Properties to dispose of Lucky Plaza property for $13.4 mil
MAS reprimands crypto hedge fund Three Arrows Capital for false information, exceeding AUM threshold, and the Three Arrows files for US bankruptcy
Creative Technology expects 2HFY2022 revenue to be below target at US$27 mil
Singtel's Thai associate AIS to acquire broadband businesses for $1.27 bil
Revez disposes shares in 55%-owned subsidiary for $200,000
Keppel Corporation terminates joint venture with Emerald Haven Realty to develop residential project in India
Ascott to acquire serviced apartment operator Oakwood, eyes 160,000 units worldwide by 2023
Nio Inc delivers 12,961 vehicles in June, up 60.3% y-o-y
Coming Market Focus (Extract):
Monday, July 4, 2022 | |
USD | U.S. Holiday: Independence Day |
SGD | Manufacturing PMI Jun |
AUD | Retail Sales (MoM) |
CNY | Caixin Services PMI |
Tuesday, July 5, 2022 | |
AUD | RBA Interest Rate Decision Jul |
SGD | Retail Sales MoM YoY May |
GBP | Composite PMI Jun Services PMI Jun |
Wednesday, July 6, 2022 | |
USD | FOMC Member Williams Speaks |
USD | S&P Global Composite PMI Services PMI Jun |
USD | ISM Non-Manufacturing PMI Jun |
USD | FOMC Meeting Minutes |
USD | JOLTs Job Openings May |
USD | API Weekly Crude Oil Stock |
Thursday, July 7, 2022 | |
SGD | Foreign Reserves USD (MoM) |
USD | ADP Nonfarm Employment Change |
USD | Initial Jobless Claims |
USD | Exports, Imports, Crude Oil Inventories |
USD | Fed Waller Speaks |
USD | FOMC Member Bullard Speaks |
Friday, July 8, 2022 | |
USD | Nonfarm Payrolls Jun |
USD | Unemployment Rate Jun |
USD | FOMC Member Williams Speaks |
CNY | CPI (MoM) (YoY) Jun |
CNY | PPI (YoY) Jun |
p.s:
Next FOMC Meetings 2022; July. 26-27
Investment Tips 💡 this month (July 2022🦉:)
Second half of the year started. And July is a month I expect with limited upside and in fact a boring month. But SG market has to complete its consolidation at 3100 level and this week, Singapore had a few data release on manufacturing PMI and retail sales for the month of June. Investor may consider to start their buying in the 2nd half of July onwards.
Once stepping into 2nd half of the month, market is going to be better. Just be careful another 2 half that fall in the month of October, where market may also pull back... but in general Q4 is going to be really OK.
CASH PLUS Promotion:
Low-commission trading account is available... and check out for Promotion Details
(Waived for US and HK Foreign Custody fee until 31 December 2022.)
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