Getting from 9 per cent to 3 per cent is easier than getting from 3 per cent to 2 per cent. And this reality is rattling markets as sticky inflation numbers keep investors guessing the central banks’ next move on interest rates.
It was a rocky week for markets, with major global indexes hitting upside resistance levels amid signs that the downtrend in inflation may be slowing. There was also some hesitancy on taking positions before the gathering of the US Federal Open Markets Committee on March 19 and 20, when pronouncements by chairman Jerome Powell and his Fed colleagues will be closely watched.
On Wall Street, the Dow Jones Industrial Average was flattish at 38,714.77 points, while the S&P 500 slid 0.13 per cent to 5,117.09 points. The tech-heavy Nasdaq gave up 0.7 per cent for the week to 15,973.17 points.
In Singapore, the Straits Times Index bounced between 3,130 and 3,190 points, before closing at 3,172.96 for a 0.8 per cent gain, boosted largely by a 2 per cent gain by the trio of banks.
Also supporting the index was Singtel, which rose to a month-high at $2.48. In a report dated March 13, DBS Group maintained a 12-month price target of $3.27 on the stock, citing its dominant positions in Singapore and Australia, and significant stakes in telecom players in India, Indonesia, the Philippines and Thailand, which contributed over 67 per cent of the group’s operating profit in financial year (FY) 2023.
The broader Singapore market remained largely moribund, lacking in liquidity or commitment.
Meanwhile, the latest US inflation number for February, coming in at a hotter-than-expected 3.2 per cent annual rate, has given sceptics of central bank rate cuts more munition. Adding to this were sticky consumer prices and producer price data, with March 14’s Producer Price Index coming in higher than expected.
هذه القصة مأخوذة من طبعة March 18, 2024 من The Straits Times.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة March 18, 2024 من The Straits Times.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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