Are you ready for another rate hike?
Last week, the U.S. stock market had been on a rollercoaster ride, and stocks slumped again last Friday after a big surge two days earlier. The very fact still fall back on the Federal Reserve is raising interest rate of another 50 basis points or ever more in the coming FOMC meeting, starting this Tuesday (2-day meetings from14 to 15 June). The worry on the surging inflations has been spreading worldwide with the slow down in the housing markets as well as shortages in food and commodities. As such, investors need to take note of the coming week as interest rate decision will continue to sway the markets to become much more volatile and uncertain than ever.
Back to Singapore, the framework for the Sovereign Green bonds was finally out, and back in March, HDB had already raised S$1 billion through the issuance of its inaugural green bond with a coupon of 1.845% per annum, rated AAA by Fitch Ratings. In the coming months, more of such bonds from the statutory boards are expected to be issued, and for investors who are seeking for high rated bonds in exchange for a lower return can consider.
SINGAPORE: Singapore on Thursday (Jun 9) published the governance framework for sovereign green bonds, ahead of the first such issuance expected in the next few months. This comes as Singapore ...
With the economic decoupling between China and the US, HSI had seem resilient in performance last week as a set of new policies was issued by the Beijing government, in support of numerous sectors from automotive, manufacturing to property sector for stabilizing the falling economies. But with the news of Beijing warns of 'explosive' COVID-19 outbreak as Shanghai begins mass testing, the number of infected cases is rising again shortly after reopening 2 weeks ago. Hence, investors need to take note of the policy makers from the East can be unanticipated, in any case it isn't surprising if they decided to resume the curfew once again to control the disease from spreading.
Last month, Hong Kong had elected a new leader, John Lee, who is set to replace Carrie Lam as Hong Kong's next chief executive on July 1. And with the coming of Establishment Day, I don't expect HSI to perform too badly on a positive note of changing a leadership.
Focus Point : Blockchain, NFTs and the Metaverse
Over the weekend, Bitcoin prices had suddenly tumbled from 30,000 support level back to 28,000 again and ever touched the lowest of 27,050 on the same day. The fall is likely triggered by the expected rising interest rate where investors are pulling money out from investments to hold back the rising U.S. dollars.
So investors should anticipate such kind of volatilities for this year in bitcoin prices. As of now, Bitcoin tumbled again and holding above 25,000 level... I suddenly recalled my previous forecast on bitcoin in my 11-16 May Issue about "... target for Q2 is below 20,000 level, buy call at 18,000 level." I think if it happened to drop below 22,000 level, no harm to start considering for a short term buy.
Other Focus (Results and Highlights of Corporate Actions):
Asia's premier security summit, the IISS Shangri-La Dialogue, is taking place in Singapore on 10–12 June 2022
The date of upcoming scheduled Fed meetings - Jun 14-15, 2022 FOMC Meeting (FOMC Calendars and Information)
Private-sector economists raise inflation forecasts for Singapore, flag risks to economy
Singapore introduces framework for sovereign green bonds ahead of inaugural issuance
Terms of merger are unfair, says a top 20 Sembcorp Marine shareholder
FLCT acquires three freehold logistics and industrial properties in Australia for $65.2 mil
Mencast Holdings' 50% share price spike triggers SGX query
Mun Siong Engineering attributes 'unusual volume movement' to Petronas’ planned capital expenditures
Singapore's Kacific in talks for US$1 bil SPAC merger, sources say
Mapletree Industrial Trust divests data centre in Michigan for US$10 mil
Lian Beng to buy building from Food Empire for $49.25 million
United Hampshire US REIT acquires new asset for US$85.7 million, pro formu DPU to reach 6.23 US cents
Tesla Files to Split Shares 3-for-1 as Investors Bail on Stock
Coming Market Focus (Extract):
Monday, June 13, 2022 | |
USD | FOMC Member Brainard Speaks |
Tuesday, June 14, 2022 | |
USD | OPEC Monthly Report |
USD | PPI mom yoy May |
USD | API Weekly Crude Oil Stock |
CNY | Fixed Asset Investment yoy May |
CNY | Industrial Production yoy May |
CNY | Chinese Unemployment Rate |
Wednesday, June 15, 2022 | |
USD | Retail Sales mom yoy May |
USD | Export & Import Price Index mom May |
USD | Crude Oil Inventories |
USD | Interest Rate Projection |
USD | FOMC Economic Projections & Statement |
USD | Fed Interest Rate Decision |
USD | FOMC Press Conference |
NZD | GDP qoq Q1 |
AUD | Employment Change May |
Thursday, June 16, 2022 | |
GBP | BoE Interest Rate Decision Jun |
JPY | BoJ Monetary Policy Statement |
USD | Building Permits May |
USD | Housing Starts mon May |
USD | Initial Jobless Claims |
USD | Philadelphia Fed Manufacturing Index Jun |
SGD | Non-Oil Exports mom yoy May |
SGD | Trade Balance |
Friday, June 17, 2022 | |
USD | Fed Chair Powell Speaks |
USD | Industrial Production mom yoy May |
HKD | Unemployment Rate May |
p.s:
2022 FOMC Meetings ; June. 14-15* ; July. 26-27 ; September. 20-21* ; November. 1-2 ; December. 13-14*.
Investment Tips 💡 this month (June 2022🦉:)
STI had dropped below 3200 on last Friday, and more downside can be expected if the raising interest rate from Federal Reserves is more than 50 basis point, as some analysts are making bold remarks ahead of FOMC...
Traders see even odds of the Federal Reserve raising rates by three-quarters of a percentage point in July, while Barclays Plc anticipates such a hike as soon as next week.
www.bloomberg.com
And I summarised some of the key points from my last Friday 95.8Fm interview as followed:
With Mr. Lawrence Wong being promoted to Deputy Prime Minister as part of Singapore Cabinet changes, STI remained flat after the announcement as no major change in economic policies or any future development plan can be expected from now.
The next generation leadership is expected to be more open-minded to engage technologies and adopt Smart Nation strategy to build a digital economy. And the recent 2 engagements that oversee by MAS, reflect that. They are (1) DigiFT’s blockchain-based, decentralized trading platform for digital securities has been approved by the Monetary Authority of Singapore (MAS) to enter the MAS FinTech Regulatory Sandbox. (2) China's Ant Group launches digital bank ANEXT in Singapore.
Economists lower the forecast on Singapore economic growth from previous survey (released in March) of 4% to 3.8% for the full year. For headline inflation is expected to hit 5% in 2022, which may further weaker the consumer purchasing power and investors need to take note of Q2 and Q3 for more uncertainties are on the way. But Q4 is expected to improve...
And investors also need to aware of the problem arise from the rising food prices, may be worsening as food has been named as strategic items for now, in which previously only those materials like Aluminium, Chromium, Oil...etc that needed for weapon-making is taken into consideration.
The rising oil prices had also sparked the interest of speculators in some of the 'sleeping' pennies from O&M industry, to become active again. Investors should do their due diligence in checking on these companies' financial positions before betting your money on it.
Last but last, the interest rate decision announced in FOMC meeting next Tues and Wed will cause the forex market become very volatile and investors who hold foreign currencies or have vested in any non USD-dominated assets should take note of the exchange rate, as currencies expected to be under pressure against USD after Fed announcement.
STI had broken down from 3200 last Friday, may trigger some fund mangers to temporary exist from the markets for capital preservation. And 3160 is one of the immediate supports for now, and the month of June and July remain volatile and uncertain.
"One point to note is that some lower return REITs may be under pressure of catching up with the rising interest rate to keep their investors to stay on with them, so investors need to take note of the REITs prices if you have a big portfolio of it on hands." In fact, I had mentioned in my last issue of Market Update
To listen the live interview, click on my pic and return to homepage or click on 95.8FM Icon right on top
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