Weekly Wrap of STI
- The STI opened at 2871.05 on Monday and closed higher to 2879.05 on Friday. This week was very much affected with the global news STRAIT TIMES WEEKLY WRAP Starting with the International Monetary Fund (IMF) on Monday and ending with the European Central Bank (ECB) on Thursday.
- Straits Times Index managed three consecutive days of rises between Tuesday 2879.05 and Thursday which helped it record a 20-point or 0.7 per cent gain for the week at 2,879.05.
- The 30 constituents of the benchmark Straits Times Index (STI) will remain unchanged following the conclusion of the latest quarterly review. Most markets ended lower in reaction to comments from the US Federal Reserve, similar to that of the US the day before.
- ECB eased its monetary policy by lowering its deposit rate by 0.1%. Surprisingly, the U.S. dollar sold off and the Euro rallied which should not be the case. But could this be temporary as Federal Reserve Chairperson Yellen remained steadfast in her stand to raise .
- An important U.S. jobs report is due out and as usual, the world will be watching again what Yellen would do to U.S. interest rates.
Market Forecast for Week Ahead
STI is expected to be negative next week. STI has taken support near 2855 and expected to break this support next week as market is expecting a fall in oil prices after the OPEC meeting. It has its resistance at 2900. If it breaks this resistance than it might go up to 2930.
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