Party in the USA

Asian markets are slated for higher prices in the day with the jubilance from Wall Street and ahead of the Chinese New Year holidays.

DJIA and the S&P 500 index, reached fresh highs on Tuesday, the latter reflecting broad-based gains in the US. Indeed, the 20,000 mark had been on the market’s radar for an extended period of time after the DJIA shot through the roof since the November Presidential elections in the US.

Leading the troop higher on the index was the Boeing Company with 4.24% gains, underpinned by the better than expected Q4 earnings report.

Certainly, we are witnessing the next leg up on the US indices in the first week of President Donald Trump. The market appears to be looking past feather-ruffling words from the newly-minted President and have been focusing on earnings and infrastructure building plans. With the crossing of this milestone, we could be anticipating a mixed influx of profit taking and fresh interests. The question could be whether the new administration’s plans can sustain the optimism when the earnings season passes.

Notably, oil prices have held onto gains despite US EIA report showing a significant 2.8 million barrels build-up in inventories, exceeding the market consensus of a 2.4 million increase. WTI futures remained trading on either side of $53.00 per barrel when last checked, supported by the positive sentiment from the OPEC deal.

Into the end of the week, Asian markets excluding Japan have been showing substantial resilience despite de-globalisation concerns and saw broad week-to-date. Opening calls for Hong Kong and the local Singapore bourses expects higher prices at the start of the session. Thursday also marks the last day of trade for Chinese markets ahead of the Chinese New Year holidays and could see a positive to flat finish for the markets. 

The day ahead will have markets watching for Q4 GDP update from the Philippines. Meanwhile Singapore’s December industrial production and Hong Kong’s December trade data will also be released today. The market is currently expecting Singapore’s December industrial production to come in at 10.4% YoY, a slight moderation from the previous figure, but nevertheless a very positive growth rate.