Expect muted gains today.
According to OCBC, the recovery on Wall Street overnight could continue to lift local sentiment; the Nikkei has rebounded 0.6% in early trade.
However, with the US index futures turning lower, further strong gains for the STI may be unlikely, given that the index was already up 0.6% yesterday; and then, there is the weekend factor, OCBC said.
Here’s more from OCBC:
As before, a convincing breach of the 2600 hurdle is key to a sustained recovery; failure to do so could send the index back towards 2500.
But we sense that the overall sentiment remains cautious; despite the gains yesterday, there were more losers than gainers.
Above 2600, the next resistance is at 2650.
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