Daily Markets Briefing: STI up 0.3%

Expect some losses today.

According to OCBC, while Wall Street ended modestly higher overnight, the US index futures are showing renewed weakness, suggesting that the overall tone remains quite muted; the Nikkei is already down 1.4% in early trade.

Here's more from OCBC:

Although the STI ended 0.3% higher yesterday, it lost about half of its earlier gains, which does not come as a surprise as many are still adopting a “sell-into-strength” approach; we are likely to see more investors paring their positions ahead of the CNY long weekend.

As before, the inability of the STI to clear and sustain itself above the key 2600 hurdle does not bode well; hence the index still looks poised to ease further towards 2521 or even 2500 in the near term.