The run-up to the Christmas break seems to have global markets in a quandary, with investors not sure which way to jump going by the results on Dec 21.
While Wall Street went into retreat overnight after a rally that drove the Dow Jones Industrial Average to record highs, regional bourses were mixed with Singapore among the modest winners, in part due to profit-takers seeking some festive cheer.
The Straits Times Index (STI) climbed 0.1 per cent or 4.47 points to 3,112.5 with gainers inching ahead of losers 265 to 231 on middling trade of 1.06 billion shares worth $759.6 million.
Major regional markets were mixed after falls of about 1.5 per cent on the three key Wall Street indexes. Hong Kong’s Hang Seng rose 0.04 per cent. Japan’s Nikkei 225 fell 1.6 per cent and South Korea’s Kospi shed 0.6 per cent.
Australian shares went into reverse after Dec 20’s gains, shedding 0.5 per cent, the most in 12 trading days.
SPI Asset Management managing partner Stephen Innes said United States futures show signs of recovery following an unexpected sell-off overnight that was attributed to perceptions that equities were overbought.
Saxo Greater China market strategist Redmond Wong said Wall Street investors may have been looking to book profits after a two-week streak of gains.
This is despite a fall in Treasury yields, with the 10-year yield declining to levels last seen in July at 3.85 per cent.
Mr Wong said that consumer confidence data and US existing home sales exceeded expectations.
Seatrium was the STI’s top gainer for the second day in a row, rising 2.7 per cent to 11.3 cents. DFI Retail Group was at the bottom of the table, down 0.9 per cent to US$2.19.
The trio of banks were mixed. DBS Bank gained 0.4 per cent to $31.67, but OCBC Bank fell 0.2 per cent to $12.43, and UOB shed 0.3 per cent to $27.44. – THE BUSINESS TIME
