Markets and Investing

IG Markets Singapore says uncertainly will remain over the Eurozone “as the world nervously awaits” for the outcome of the election.

Downside momentum is expected with the index showing difficulties overcoming the 2800 level.

The keen interest in the contract has led to a total of $16 million in traded volume just two weeks after its launch in SMX.

RBS says risk-oriented currencies staged a comeback after the previous sell-off.

The index ended 0.3% higher on Tuesday after rebounding from a lower 0.9% opening.

The local currency had held steady sitting below the $1.28 mark up until Monday night.

With the tone likely to turn more downside biased, says OCBC Investment Research, the index could slip back towards its immediate support around 2735.

The local currency is trading at $1.275 against the US dollar.

Markets are likely to rebound following news that Chinese inflation eased and Spanish banks were bailed out by the EU, says IG Markets Singapore.

The local currency is forecast to drift to $1.30 by the end of 2012.

The index was unable to sustain itself above 2770 during an ‘uninspired’ session.

Volumes reached 7.67 million tonnes or 15,353 lots cleared in May, up 122% yoy.

Upbeat traders reduced their positions in the greenback and yen.

Thursday's tone is expected to remain upbeat, with the index forecast to recover further.

PMI factory output figures showing a rise to 50.4 points in May are also likely to boost trading in Singapore.

The local currency has gained slightly on the greenback as a G7 conference call took the edge of the eurozone crisis, according to IG Markets Singapore.