Pre-Market Open Commentary for 30 November 2009
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DJIA: 10309.92 -154.48
Nasdaq Composite: 2138.44 -37.61
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The US market tumbled on Friday afternoon, with the major indices falling by 1.5% to 1.7%, as fears about the fallout from Dubai’s debt problem, a rallying dollar and a selloff in commodities unnerved Wall Street in a thinly-traded half-day session following Thanksgiving. For the week, the major indices ended relatively flat, the Dow Jones Industrial Average dipping 0.08% while S&P 500 gained marginally by 0.01% to end at 1091.49. Nasdaq composite lost 0.35%.
On a positive note, initial reports and projections released over the weekend for Black Friday showed that despite the brutal job market, decline in personal wealth and lingering concerns about the economy, consumers are willing to take advantage of deals on clothing, toys, electronics and entertainment. However, the mildly upbeat news is expected to overshadow Dubai’s debt problem, which is expected to continue to exert pressure at the beginning of the new week ahead.
This week will also bring significant readings on manufacturing, housing and the labour market with the November jobs report due on Friday. On Monday, Cyber Monday will be scrutinized for signs that the consumer is participating in online shopping following the long Thanksgiving weekend, together with a regional reading on manufacturing.
For the week, US light crude oil for December delivery fell US$0.67, or 0.87%, to US$76.05 a barrel.
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In Singapore today:
The world financial markets slumped last week after the Dubai government said its flagship conglomerate needed a six-month standstill on US$59b debt, triggering fears of default. Key Asian bourses were bruised last Friday with Hang Seng Index plunging 4.8%, Nikkei falling 3.2% and Kospi sinking 4.7%. The STI index fell 30.62 points to 2762.22 on the close of last Thursday, ahead of the long weekend. For the week, the STI remained relatively unchanged, gaining a mere 0.02%.
Expect a delayed selldown today in the wake of the Dubai debt problem, which surfaced mid-last week, after the long weekend. Also highly-anticipated are the key US economic readings on monthly unemployment rate and payroll data due this Friday.
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Mid day November 30. Singapore shares spared steep sell-offs
Singapore shares were spared the sell-off that happened to Asia last Friday as jittery investors reacted to the news of the Dubai debt default. After the steep loss of Friday, Asian markets posted gains Monday on bargain hunting as Dubai fears subside. The STI index fell 0.8 per cent ( off in lieu selling) or 24.48 points at 2737.74 points. The STI exchange traded fund traded in New York had slumped 2.5 per cent on Friday. For every stock that rose, 7 fell. Turnover was 964mil shares with a value of $1.3bil traded.
Singapore banks were weaker, bringing themselves in line with its peers on program sell orders. DBS Bank swooned 32 cents at $14.44 and was tracked by OCBC Bank and UOB that fell 12 and 14 cents. Other stocks that fell included Jardine Matheson, APB, Venture Corp, STX Panocean, UOL, Keppel Corp and Great Eastern that fell between 4 and 60 cents.
On the balance, shares of Jardine C&C, SGX, CapitalMall Trust, China XLX, PEC, Petra and Comfort Delgro rose between 1 and 24 cents.
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