Can the rate hikes pass the moment of test in suppressing inflations? Let CPI (released this Wed) tell the truth
🌀 Focal Point: The US dollar and euro are almost equal and hit parity today!
(Meaning USD 1 = EUR 1).... The weakened Euro make energy prices more vulnerable and making many countries on the brink of recession if purchasing power of currency is further deteriorate in the midst of inflation.
🌀 Focal Point: Higher yield bonds continue to push out in the market.. this week we have Societe Generale SGD Perpetual issued at 8.5%. As the banking institutions could be pressured to push out new bonds ahead of the next Fed meeting, with another rise of 75-basis points seemed getting inevitable.
To Investors :
Unless you are holding a fair amount of USD and planning a vacation to Europe as of now you can buy more things than ever before, else the situations of USD/EUR currency pair, will be the same go to USD/SGD pair. Manufacturers need to bear higher production costs now with most of the raw materials are priced in USD. And the profit margin will likely be affected in the coming reporting seasons.
🌀 Focal Point: 👉🏼 Former Japanese Prime Minister Shinzo Abe assassinated,
👉🏼 Sri Lanka president to resign after protestors storm palace,
👉🏼 Boris Johnson resigns as U.K. prime minister, 👉🏼 Cases of COVID-19 are surging again globally...
So many horrifying news happened last week, may not exactly dampen the market sentiment but will surly make funds remain very cautions in their moves because the political influences will increase the investment risk.
And the global money had been outflowing from Asian markets since the US interest rate started raising in the month of May... and reported that "The steepest selling was in tech-heavy Taiwan and South Korea and energy-importing India, while foreign investors also made supersized outflows from Indonesian bonds."
* Related-linked:
Hawkish Fed The Fed’s aggressive tightening, which is pushing up US yields, is expected to keep drawing money away from the region. Swaps are pricing in a further 150 basis points of rate hikes from the US central bank this year. “The reason foreign investors are selling shares in those markets is not because something has gone wrong in them, instead, it’s because the Federal Reserve and ... (source: www.theedgesingapore.com)
To Investors :
We needs to understand the above will not just affect the stock markets, the very much affected instrument includes Unit Trust as well as Mutual funds. Hence, investors need to be careful of which market and asset classes your unit trust investments exposed to if you want to buy into UT. After all, the outflow of funds will unlikely to reverse back to Asia in the near futures. That's something investors need to consider before pouring in more money into it.
p.s.: The nature of unit trust is basically a security that buys into a basket of assets (stocks, bonds, and other investment instruments) actively managed by a fund manager. Therefore, the value of each portfolio is the sum of the value of the investments (stocks, bonds) which they hold.
"A Little Progress each day adds up to Big Results"📌
Focus Point : Blockchain, NFTs and the Metaverse
GameStop launched its NFT marketplace on Monday, the latest announcement in what's been a busy month of July for the company.
sg.news.yahoo.com
Other links: Mixed fortunes of celebrities who leapt on NFT craze
Other Focus (Results and Highlights of Corporate Actions):
HK IPO: TIANQI LITHIUM (09696.HK) Sets Offer Price at Upper End $82/ Shr, will be listed on 13 Jul in HKEx
Abe shooting raises doubts over BOJ policy support as yen gains
Musk scraps US$44B Twitter deal over 'misleading representations'
GameStop tumbles on CFO's firing, reports of job cuts
SIC requires Hwa Hong's directors to announce alternative offer by July 25
Aspial Corp to sell jewellery businesses to subsidiary Maxi-Cash for up to $99.8 million
Cromwell E-Reit divests Finland office asset; acquires third UK logistics asset
SPH Reit posts 5.1% rise in Q3 DPU
TTJ Holdings privatisation offer closing date extended to Jul 22
YZJ clinches 4 new ship orders from PIL, brings this year’s new orders to US$990m
SIIC Environment to divest stake in waste treatment unit for S$59m
Fortress Minerals posts 41.8% fall in net profit after tax
SGX RegCo to further investigate Eneco Energy for potential breaches of listing rules
SGX RegCo issues ‘trade with caution’ alert on Sevens Atelier
Coming Market Focus (Extract):
Monday, July 11, 2022 | |
SGD | Singapore Holiday: Eid al-Adha |
CNY | New Loans |
USD | FOMC Member Williams Speaks |
Tuesday, July 12, 2022 | |
USD | OPEC Monthly Report |
USD | API Weekly Crude Oil Stock |
AUD | Westpac Consumer Sentiment (Jul) |
NZD | RBNZ Interest Rate Decision |
CNY | Exports, Imports, Trade Balance (USD) (Jun) |
Wednesday, July 13, 2022 | |
GBP | GDP mom, GDP yoy, GDP qoq Manufacturing Production mom (May) |
USD | Core CPI, CPI mom yoy (Jun) |
USD | Crude Oil Inventories, Crushing Crude Oil Inventories |
USD | Federal Budget Balance (Jun) |
SGD | GDP qoq yoy Q2 |
Thursday, July 14, 2022 | |
USD | Initial Jobless Claims |
USD | PPI yoy mom (Jun) |
SGD | Non-Oil Exports mom yoy (Jun), Trade Balance |
CNY | GDP yoy qoq (Q2), Industrial Production yoy (Jun) |
Friday, July 15, 2022 | |
USD | Core Retail Sales mom (Jun) |
USD | Export Price Index mom Import Price Index mom (Jun) |
USD | Retail Sales mom yoy (Jun) |
USD | Industrial Production yoy mom (Jun) |
USD | Business Inventories mom (May) Retail Inventories Ex Auto (May) |
p.s:
Next FOMC Meetings 2022; July. 26-27
Investment Tips 💡 this month (July 2022🦉:)
I will remain cautious for short term trading... but I think buying in for long term can start anytime now.
I'm aware that some institutions don't encourage to buy on dip, but I am more optimistic and I will write the 2 half of 2022 Fengshui market forecast for the next issue.
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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