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Writer's pictureAda Tam Ying Ying

Market Update: Hurray for Lower CPI, but the next anxiety awaiting in line: Month-End FOMC

Market Update for 3 - 13 Jan 2023

Market forecast from 16 - 20 Jan 2023


Past Events last Weeks:

➡️Fed wants 'flexibility' on rates as inflation remains key focus... (Reuters) dated 5 Jan

➡️Asian Financial Forum 2023, Hong Kong (11 - 12 Jan 23)

➡️World Bank Warns Of Global Recession Risk (Forbes)

➡️United Stated: CPI (YoY) Dec : 7.1% to 6.5%


Market Forecast:

In the beginning of year 2023, the best performing market was none other Hong Kong's HSI, from the worst of 14,687 points rebounded 6000 over points within 2 months, currently sitting firm above 21,000 points. Thanks to the China border reopening, analyses expected the demands of goods and services, rental markets, constructions... etc are making the comeback with the removal of travelling restrictions. But any further upside of HSI, still requires strong economic data to back it up. Therefore, investors should not rush into Hong Kong Market now if you had missed the early entry of this rally. The overbought signals are flicking.


And last week, the markets were all eyes on the announcement of U.S.'s CPI, as the next scheduled FOMC meeting that held between 31st Jan - 1st Feb will decide on the new rate hike to be 0.25% or 0.5%. With more and more warning signs of recessions are flashing in the market, the annual earnings season is getting important to investors, as they want to ensure the profit margin of their vested sectors are healthy enough to withstand any adversities.


Though, the inflation seem well contained as CPI trending lower, the Singapore's economic data reported so far, continue showing weakness in export demands. Beside lower GDP, consumer spending power also affected as retail sales had been dropping in consecutive months.


In the month of January, my pick of the month for trading SG market is Property sector, especially whenever there is any sudden pullback in prices, traders can consider to buy in for short-term trade. But you should take chance to let go all and profit take by first week of Feb. In conclusion, investors can consider to unload counters include banking stocks, chip-makers, properties, REITs and any other counters that had suddenly surged after earning announcements. This year, it may be a good idea to profit take rather than hold on for dividend, as the dividend payout period for most good stocks need to wait till April for entitlement.


 

My latest Market View published in ZaoBao in the month of January 2023:


Market Summary dated on 10 Jan 23:


Market Summary dated on 6 Jan 23


Market Summary dated on 6 Jan 23:



 

🌀SG Earning Announcement🌀

Watch out for the Final Year Earning reporting season in 2nd part of Jan 2023...



🌀 Highlights of Economic Calendar: 16 - 20 Jan 23 🌀

Mon, 16 Jan 23 SGD : Non-Oil Exports

SGD : Trade Balance

CNY : Chinese GDP, Q4 CNY : Industrial Production

CNY : Chinese Unemployment Rate

Tues, 17 Jan 23 USD : OPEC Monthly Report

USD : NY Empire State Manufacturing Index

Wed, 18 Jan 23 JPY : BoJ Press Conference , BoJ Interest Rate Decision

GBP : CPI, Dec

USD : Core PPI / PPI

USD : Core Retail Sales , Retail Sales

USD : Industrial Production

USD : Business Inventories , Retail Inventories Ex Auto

Thu, 19 Jan 23 USD : Building Permits

USD : Housing Starts

USD : Initial Jobless Claims

USD : Philadelphia Fed Manufacturing Index

USD : Crude Oil Inventories

Fri, 19 Jan 23 USD : Existing Home Sales


🌀 Things to note of past Economic Calendar: 2 - 13 Jan 23 🌀

Singapore, SGD: GDP (QoQ), Q4 : 4.6% to 0.8%

GDP (YoY), Q4 : 4.2% to 2.2%

URA Property Index : 3.8% to 0.20%

Manufacturing PMI, Dec : 49.8 to 49.7

Retail Sales (MoM), Nov : 0.1% to -3.7%

Retail Sales (YoY), Nov : 10.3% to 6.2%

Foreign Serves USD (MoM), Dec : 291.3B to 289.5B


Unit States, USD: Fed's Chair Powell Spoke: Powell says Fed might have to make unpopular decisions to stabilize prices (CNBC)

ISM Manufacturing Employment, Dec 48.4 to 51.4

JOLTs Job Openings. Nov 10.512M to 10.458M

ADP Nonfarm Employment Change, Dec : 182K to 235K

Exports : 256.9B to 251.90B

Imports : 334.80B to 313.40B

Initial Jobless Claims : 223K to 204K

Trade Balance, Nov : 220.50K to 213.75K

S&P Global Composite PMI, Dec : 46.4 to 45.0

Services PMI, Dec : 46.2 to 44.7

Nonfarm Payrolls, Dec : 256K to 223K

Private Nonfarm Payrolls, Dec : 202K to 220K

Unemployment Rate, Dec : 3.6% to 3.5%

Factory Orders (MoM), Nov : 0.4% to -1.8%

ISM Non-Manufacturing PMI : 56.5 to 49.6

CB Employment Trends Index, Dec : 117.14 to 116.31

API Weekly Crude Oil Stock : from -1.300M to 3.298M to 14.865M

Crude Oil Inventories : from 0.718M to 1.694M to 18.962M

Core CPI (MoM) Dec : 0.2% to 0.3%

Core CPI (YoY) Dec : 6.0% to 5.7%

Core CPI Index Dec : 300.07 to 300.97

CPI (MoM) Dec : 0.1% to -0.1%

CPI (YoY) Dec : 7.1% to 6.5%

Initial Jobless Claims : 206K to 205K

Federal Budget Balance, Dec -249.0B to -85.0B

Reserve Balances with Federal Reserve Banks : 3.050T to 3.117T

Export Price Index (MoM) : -0.4% to -2.6%

Import Price Index (MoM) : -0.7% to 0.4%


China, CNY: Caixin Services PMI Dec : 46.7 to 48.0

Caixin Manufacturing PMI Dec : 49.4 to 49.0

FX Reserves USD, Dec : 3.117T to 3.128T

New Loans (Dec) : 1210.0B to 1400.0B

Chinese Total Social Financing Dec : 1990.0B to 1310.0B

CPI (YoY) Dec : 1.6% to 1.8%

CPI (MoM) Dec : -0.2% to 0.0%

PPI (YoY) Dec : -1.3% to -0.7%

Exports (YoY) Dec : -8.7% to -9.9%

Imports (YoY) Dec : -10.6% to -7.5%

Trade Balance USD, Dec : 69.84B to 78.00B

Hong Kong, HKD: Manufacturing PMI Dec : 48.7 to 49.6

Foreign Reserves (USD) Dec : 423.20B to 424.00B


Australia, AUD: CPI (YoY) Q4 : 6.9% to 7.3%

Exports (MoM) Nov -1.2% to -0.4%

Imports (MoM) Nov -2.0% to -1.5%

Trade Balance, Nov : 12.217B to 13.201B


British, GBP: GDP (MoM) 0.5% to 0.1%

GDP (YoY) : 1.5% to 0.2%

Manufacturing Production (MoM), Nov : 0.7% to -0.5%

Trade Balance Nov : -12.26B to -15.62B


 

📌

Other Focus (Highlights of Results / Corporate Actions):

Other extracted news:

  • Temasek-backed data centre operator explores over US$1 billion IPO, sources say

  • Twitter tells Asia HQ staff to clear desks, work from home

  • Temasek’s GenZero co-leads US$15 mil round into SaaS climate tech firm Chooose

  • Shares in Genting Singapore can now be traded under the CPFIS

  • UOB prices $850 mil perpetual capital securities with 5.25% coupon

  • Olam Agri’s IPO rides on the back of enhanced global focus on food security

  • GIC joins Saudi wealth fund in US$930 mil pre-IPO bet on anime giant

  • Marco Polo Marine signs landmark MOU with Korean companies to pursue offshore wind vessel projects in South Korea

  • Macquarie Asset Management to take 40% stake in Temasek subsidiary

  • SingPost acquires additional 37% total stake in Freight Management Holdings for A$175.4 mil

  • CDG invests $5.4 mil into teleoperation software company to boost autonomous vehicle capabilities

  • Microsoft considers US$10 billion investment in ChatGPT creator

  • Jamie Dimon says Fed may need to hike interest rates beyond 5%

  • World's biggest chipmaker TSMC misses sales forecasts as demand wanes

  • Civmec secures over A$330 mil contract for Rio Tinto Western Range Project

  • Jack Ma is giving up control of Ant Group

  • Yangzijiang Shipbuilding (Holdings) subsidiary faces US$4.8 mil winding up claim

  • Samudera Shipping acquires 2 container vessels for US$66 mil

  • Sheng Siong to open fifth store in China

  • Hong Kong to reopen border with China, with 60,000 person quota

  • Jumbo and Thakral in the buyback spotlight

  • Singapore's retail sales up by 6.2% y-o-y to $4.0 bil in November 2022


📌

SGX & Other Newsfeed

💡 SGX <Analyst Research>



 

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(Waived for US and HK Foreign Custody fee until 31 December 2022.)




 

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