Daily Markets Briefing: STI up 0.49%

Expect muted gains today.

According to OCBC, the overnight correction on Wall Street and the still-soft US index futures could spark a similar sell-down in the local bourse this morning; the Nikkei has fallen some 1.7% in early trade.

Here’s more from OCBC:

While the STI continues to remain well above the initial 2650 support, we note that the index could lack near-term momentum to make a test of the key 2700 hurdle; price action yesterday also suggests that the recent rebound could be running out of steam.

And with the local results season drawing to a close soon, the lack of corporate news could also keep more investors on the sidelines, while waiting for better levels to re-enter the market.

As such, we could see a test and possible breach of the initial 2650 support; but we expect the 2600 support to hold for now.