SGX IForex Recommendations

TRADING TIPS :

EUR/USD was down 0.52% at 1.2319, up from a session low of 1.2302 and off a high of 1.2391.The pair was likely to find support at 1.2293, the low from Aug. 20, 2012, and resistance at 1.2507. The euro weakened to two-year lows against an advancing dollar on Wednesday after a widely-watched gauge of the U.S. service sector beat expectations and fueled sentiments that recovery continues to gain momentum.Analysts had expected the index to inch up to 57.5 in November, and the better-than-expected report kept expectations firm that the Federal Reserve will move to hike interest rates next year.The overall weak data added to pressure on the European Central Bank.

INTRADAY OUTLOOK

Support: 1.2304

Resistance: 1.2354

RECOMMENDATION:

1. Buy EUR/USD Above 1.2356-TG:1.2376/1.2403 SL 1.2326

2. Sell EUR/USD Below 1.2300-TG:1.2280/1.2250 SL 1.2330

INTRADAY OUTLOOK

Immediate Support: 119.62

Immediate Resistance: 120.12

RECOMMENDATION:

1. Buy USD/JPY Above 120.15-TG:120.35/120.65 SL 119.85

2. Sell USD/JPY Below 119.60-TG:119.40/119.10 SL 119.90

SGX Stock Recommendations

MARKET UPDATES :

• SINGAPORE Exchange chief executive Magnus Bocker apologised for the latest market disruption, saying that the market operator takes full responsibility. “We sincerely apologise to all our securities members and their customers for the inconvenience caused by the delay in market open this morning,” Mr Bocker said in a statement. The Singapore stock market opened on higher ground after trading was delayed in the morning to resolve issues from a software glitch by SGX.

• DEFLATION has emerged as a new global concern, as oil prices plunge and growth slows. In Singapore, however, the alarm bells aren’t ringing yet. Singapore may see its first negative monthly inflation in five years before the year’s end with the release of November’s consumer price index (CPI), but most economists see no reason to expect damaging deflation – a persistent fall in prices typically triggered by a sharp contraction in demand.

• Petronas would its cut capital expenditure by 15% to 20% next year, in line with the other oil companies due to the weak crude oil prices. The group’s revenue for 3Q14 fell 1% y/y to RM80.37 billion mainly due to lower average realized prices for most major products coupled with the effect of the unfavorable US dollar exchange rate movement against the ringgit. Chief Executive Tan Sri Shamsul commented that payments to the government in the form of dividends, tax and royalties could be 37 percent lower next year if oil stays around $75 a barrel

• Modest GDP growth outlook, lower core CPI-We expect Singapore to post moderate GDP growth of 2.5% in 2015, alongside a mild acceleration in global growth to 3.5%. UBS economists expect SIBOR to rise to 1.4%, in tandem with an expected Fed rate hike to 1.25%. We forecast core CPI to decline to 1.5% on lower commodity prices, weaker growth and a slacker labour market. We expect an end- 2015 US$/S$ of 1.32.

• Low-cost and stable funding source-Singapore banks may soon be able to issue covered bonds (CBs). These are already popular in Australia, Europe and the US. CBs are secured against a specific asset pool, primarily residential mortgages. Given the regulatory cap on the amount of assets backing the bonds at 4% of a bank’s assets, the size of CBs that can be issued by our three Singapore banks works out to SGD26b, or 3% of their total interest-bearing liabilities.

• SINGAPORE Post is buying an Australian small-parcel business for A$95 million (S$104.7 million) in cash to boost its e- commerce capabilities Down Under, the postal services provider announced on Wednesday morning. Quantium Solutions (Australia), a wholly owned subsidiary of SingPost, will buy from the New Zealand Post group all of Couriers Please Holdings, a metropolitan courier service with depots in eastern and southern Australia.

S&P Market News Update

Big gains in energy, materials and industrials sectors, following a rebound in oil and gold prices, helped propel the S&P 500 and Dow Jones Industrial Average to record levels on Wednesday.

The S&P 500 SPX, +0.38%  both set an intraday record and closed at a record for the 48th time this year, after gaining 7.77 points, or 0.4%, to 2,074.32.