Friday, March 4, 2016

Mar[2] - Market Update

Oil:
US government's Energy Information Administration announced that US crude oil inventory rose to 578 million barrels last week, but output fell for six straight weeks to 9 million a day. It showed that US oil production fell to its lowest level since Nov 2014. The news gave a boost to crude oil this week. It has broken resistance ~ USD34.5. Next immediate resistance would be USD38. 


Gold vs USD:
US has been producing confusing economy data. Manufacturing PMI has been falling but unemployment rate has been staying low. Movement of gold and USD index showed that market were betting on longer period till next rate hike from US Fed. However on last trading day, a better non-farm payroll out beat market expectation. A U turn were seen on both Gold and USD index. 


Singapore:
Regional market has been rising strongly over last week. STI was one of the bullish index among the rest. Led by domestic banks counter, the index broke up resistance ~2763 decisively. It is heading to next immediate ~ 2894. Considering the upward movement of crude oil on last trading day, STI could follow suit on coming days. However rate hike worries could return soon. Next FOMC meeting is on mid March. 


Market Calendar on coming week:
(SG: Singapore; CH: China; US: USA)


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