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Writer's pictureAda Tam Ying Ying

Market Update 6th - 12th July 2022

Updated: Jul 13, 2022

Can the rate hikes pass the moment of test in suppressing inflations? Let CPI (released this Wed) tell the truth


๐ŸŒ€ 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.


๐ŸŒ€ 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.



๐ŸŒ€ Focal Point: ๐Ÿ‘‰๐Ÿผ Former Japanese Prime Minister Shinzo Abe assassinated,

๐Ÿ‘‰๐Ÿผ Sri Lanka president to resign after protestors storm palace,

๐Ÿ‘‰๐Ÿผ Boris Johnson resigns as U.K. prime minister, ๐Ÿ‘‰๐Ÿผ 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 Fedโ€™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. โ€œThe reason foreign investors are selling shares in those markets is not because something has gone wrong in them, instead, itโ€™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.



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"A Little Progress each day adds up to Big Results"๐Ÿ“Œ

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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



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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 yearโ€™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 โ€˜trade with cautionโ€™ alert on Sevens Atelier



Coming Market Focus (Extract):

Monday, July 11, 2022

โ€‹

SGD

Singapore Holiday: Eid al-Adha

CNY

New Loans

USD

FOMC Member Williams Speaks

Tuesday, July 12, 2022

โ€‹

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

โ€‹

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

โ€‹

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

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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 ๐Ÿ’ก this month (July 2022๐Ÿฆ‰:)


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.



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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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