1. JSH 500US$ +0.950
2. StarHub +0.030
3. SPH +0.010
4. SIA Engg +0.010
The top 5 loser component stocks were :-
1. JMH 400US$ -1.120
2. UOB -0.750
3. CityDev -0.710
4. Jardine C&C -0.540
5. SIA -0.540
US markets fell average 2% yesterday night with a series of events that could lead to the selling. BOJ intervened Yen caused USD to strengthen against global currencies causing USD carry trade unwind. The surge of USD still continue today. Italian bond yield jumped above the 6% level on concern of EU debt brought the fear of EU crisis back to investors and MF Global filed for bankruptcy ( first victim of non-EU financial company due to EU debt crisis ) created a panic among the financial sector stocks. MF Global was only allowed to liquidate stocks which caused some selling pressure to stocks in general. Asian bourses taking the cue and with China reported PMI of 50.4 for October ( below expectation and lowest in almost 3 years ), bearish sentiment hit Asian bourses. Nikkei closed -1.70%, SSE +0.07% ( as analysts are expecting China to loosen monetary policy to spur growth ) and HSI -2.49%. STI in line with regional bourses continued the selling from yesterday fell 2.33% in a moderate thin volume. 25 of the 30 index stocks registered negative closing which bank stocks leading the drop ahead of their earning this week. Total with yesterday, STI has pulled back around 4% after the surge last week.
There are couple of events this week which will dictate the direction of stock markets. ECB meeting which most expecting an interest rate cut of at least 25 basis point, US Fed meeting starting today, G20 meeting on 3rd - 4th and also US employment situation this Friday.
