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Despite strong headwinds, mostly related to the ripple effects from the war in Ukraine and high global inflation, the global economy has proven resilient so far in 2023. The upturn, however, remains weak, amid significant downside risks. Core inflation is proving persistent and the impact of higher interest rates is increasingly being felt across the economy. So what’s the outlook for the second h...

China’s central bank last week cut the interest rate on its medium-term funding for financial institutions, marking its third policy rate change in three days amid efforts to support the slowing economy through renewed monetary loosening. How do these moves affect the future outlook for markets in China and globally? Another big decision will be made tomorrow regarding the loan prime rate. Can we...

Speculation was rife about the performance of the US dollar as markets deliberated upon whether or not the US Fed would hold firm on interest rates, or tighten its monetary policy. The Fed ultimately decision to pause rates, while also signalling that borrowing costs will increase by another 50 basis points by end-December, causing the greenback to rally in Asian trading. How and why did this happ...

The US Fed decision to keep interest rates steady at the conclusion of its two-day policy meeting this week has moved markets around the world. How have Singapore shares and banks reacted to the latest pause? On the economic front - Singapore’s non-oil domestic exports were down a surprising 14.7 per cent in May, a steeper slide than April’s 9.8 per cent contraction. What can we make of these numb...

The US Federal Reserve announced it would hold its policy rate steady today at the conclusion of its two-day meeting on Wednesday. It marked first time the US Fed has not raised rates since March 2022, when it launched the first of ten consecutive increases. The target range for the federal funds rate thus stays at 5–5.25%. How are markets reaction to this decision and can we expect further hikes...

Gold is in the midst of a pivotal week as traders and investors await the US Federal Reserve's interest rate decision late on Wednesday.  How is the continued repricing of rate hike probabilities for the US Federal Reserve weighing on the recovery of Gold prices? And what factors could determine the direction of gold prices going forward? On Money in the Market, Hongbin Jeong speaks to  Priyanka S...

Oil prices rose initially in the immediate aftermath of Saudi Arabia's unilateral decision to reduce output by a million barrels per day from July. However, prices have since declined after analysts highlighted rising global supplies and concerns about demand growth just ahead of key inflation data and a US Federal Reserve meeting that concludes on Wednesday. So what is the price outlook for globa...

Roughly US$25 billion worth of IPOs was priced globally in March and April, nearly twice the amount seen in the first two months of the year when listings virtually ground to a halt. Why has the IPO market been so deflated this year and what’s behind the recent resurgence? And why is Southeast Asia fast emerging as a hotspot for new offerings as global deals - overall - decline? On Money in the Ma...

​​Investors are in a feeding frenzy over artificial intelligence software players.  In recent weeks, stocks exposed to AI technology have rallied hard, giving rise to fears that these stocks could have moved into a bubble. What’s driving this new hype towards AI stocks? And can it last? On Money in the Market, Hongbin Jeong speaks to  Hal Hodson, Special Projects Writer, The Economist,  to find ou...

Singapore Airlines’ share price soared 1.6 per cent to a three-year high of S$7 earlier this week – a figure last seen in March 2020, when the pandemic started to hit the national carrier’s passenger traffic. Can we expect this optimism for SIA to continue? Singapore’s retail sales also rose 3.6 per cent year on year in April. What do these numbers tell us? And will the US Fed’s next policy decisi...

Turmoil in the global banking industry, and the consequence of aggressive monetary tightening, have led many to question whether we're on the verge of yet another financial crisis.  And it’s added to volatility in the credit default swaps market as well.  So how were the credit default swaps of our Singapore banks affected? And what’s the outlook for the CDS for the second half of the year? On Mon...

Asia’s wealth management revenue is expected to reach $90 billion by 2025. That’s as private banking in Asia is expected to display significant growth in the coming years as the number of ultra-high net worth individuals in the region increases. This is according to the latest report by WWF-Singapore. The nature group states that It is therefore more relevant than ever to stress the importance of...

The US market has been trending sideways since mid-April, but sentiment in APAC markets seems to be improving on the back of better than expected Q1 earnings reports.  The persistent worry of a US default had translated into a continued preference for risk-averse assets. Will this preference change? On Money in the Market, Hongbin Jeong speaks to Olivier d’Assier, Head of Applied Research, APAC, Q...

With US ceiling talks now done and dusted, the focus is now squarely back on the US Federal Reserve and inflation.  What is the current state of inflation in the US? And what will the US Fed's next policy move be - can we expect more tightening? And if there is a rate hike, what would it mean for the economy?  On Money in the Market, Hongbin Jeong speaks to  Gary Dugan, CIO at Dalma Capital,  to f...

The US has averted a catastrophic debt default. The deal that's been brokered limits federal spending for two years and suspends the debt ceiling through the 2024 election. What does this mean? How are markets likely to react if the US Federal Reserve opts for another rate hike - and what kind of impacts will that have on the US economy? On Money in the Market, Hongbin Jeong speaks to  Vishnu Vara...

India's economic growth accelerated to 6.1% in the March quarter, boosted by government and private capital spending even as private consumption remained sluggish. India recently made the headlines for reclaiming its spot at the world’s fifth largest stock market after losing that status to France in January, boosted by a rebound in Adani Group stocks. What is keeping foreign investors interested...

The performance of US equities has been mixed following the announcement of a tentative deal on the longstanding US debt ceiling impasse. The bond market also has much to contend with. The Treasury will need to replenish its coffers by selling more debt and the passing of the deal puts focus back on the Federal Reserve’s fight to tame inflation.  Meanwhile, gold futures and spot price rose while o...

Listed companies are on a path to warm the planet by 2.7° above preindustrial levels this century. That’s according to the latest MSCI Net-Zero Tracker. The number is well above  limiting the rise in average global temperatures to 1.5 degrees Celsius  above preindustrial levels. And while climate goals by listcos may be on the rise, so are emissions.  Rachel Kelly speaks to Sylvain Vanston, Execut...

The US dollar nudged lower, pulling back from six-month peaks against the yen, following news of a U.S. debt ceiling deal, which lifted risk appetite across world markets and dented the greenback's safe-haven appeal. What does that signal? The Nikkei, meanwhile, closed at a fresh 33-year high on Monday. How has the Japanese yen reacted to this? Hongbin Jeong speaks to Peter Chia , Senior FX Strate...

White House and Republican negotiators have reached a tentative deal to raise the US debt ceiling and avert a default that threatened to send tremors through the global economy. The bill has been lined up for a vote on Wednesday. How are Asian markets reacting to this news? Treasury Secretary Janet Yellen has warned, though, that an extension must be finalised by June 5 to avoid a historic default...

Asian high-yield bonds were one of the most downtrodden sectors from 2022, but they’ve surged by around 30 per cent since November 2022 earlier this year. So what's the outlook for the Asian credit market for the remainder of 2023? And what competitive edge do Asian corporate bonds hold that make them more attractive? On Money in the Market, Hongbin Jeong speaks to  Henry Loh, Head of Asian Credit...

Nvidia is within touching distance of $1 trillion market value — poised to become only the ninth firm ever to hit that milestone — as the artificial intelligence frenzy boosts demand for processors that can accelerate computing. The chipmaker would become the fifth publicly traded U.S. company to be currently worth $1 trillion. Apple created the club in 2018, while Microsoft, Alphabet and Amazon a...

China has been boasting strong economic growth since the removal of its Zero Covid policy. But concerns remain among investors over the strength of China’s economic recovery, as the combination of strong post-reopening economic data and sluggish stock-market returns proves perplexing. So is there room to grow for Chinese markets later in the year? And what are some of the investment trends when it...

Singapore aims to reach net zero by 2050. And, according to some industry players - more needs to be done to reach climate goals. A survey of members of the Sustainable Energy Association of Singapore revealed that more than two thirds (72%) of respondents believe that Singapore isn’t making fast enough progress on its net zero targets. In this week's episode of Eco Money, Rachel Kelly speaks to K...

According to TD Ameritrade Singapore’s latest report on its Singapore Investor Movement Index, which tracks what investors were actually doing and how they were positioned in the markets, Singapore investors had increased exposure during the April period, but that was unlike the overall TD Ameritrade client population.  In fact, Singaporean investors were net sellers of equities. On Money in the M...