Analysts aren’t too optimistic.
Singapore’s stock market booked an impressive rebound in the past week, buoyed by the rally in global equity markets. However, CMC Markets analyst Margaret Yang isn’t too impressed by the recovery.
“I’m not overly-optimistic about the recent rally as the fundamentals haven’t improved much from January especially after yesterday’s disappointing China Trade balance data,” Yang said.
Yang noted that recently-announced news point to more pain ahead for equity markets. These negative news include the tumble in China’s trade balance, the steep crash in Hong Kong home sales, the wider-than-expected US trade deficit, and China’s revision of its 2016 GDP target. Singapore’s January manufacturing output has also dropped for the twelfth straight month, while crude oil inventory continues to hover a 5-year high.
“Unless there are signs of improvement in the fundamentals, we should stay calm and be skeptical on short-term technical rebounds,” Yang said.
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