Strengthening Trend Forecasted for Merger and Acquisition Activities in Singapore Stock Market
Wall Street experienced a mixed day on Tuesday, with the S&P 500 sinking 37.78 points or 0.59 percent, while the Dow managed a slight rise of 10.45 points or 0.02 percent. The NASDAQ, however, suffered a significant slump, falling 314.82 points or 1.46 percent, primarily due to weakness in the tech sector [1][2].
In Asia, the predicted direction for Wednesday is mixed to slightly positive. Tech stocks are expected to advance due to optimism ahead of Nvidia's earnings report, while broader sentiment outside tech remains weaker, particularly in Chinese indices, which showed declines [1][2].
The Singapore stock market, which ended a three-day slide on Tuesday, saw tech stocks advance, driven by strong performances in AI-related companies like China's Cambricon (up 8.2%) and gains in other tech equities [1][2]. However, broader market indexes in the region showed mixed performance.
External factors like US tariffs on India and mixed economic data like hotter-than-expected Australian inflation add uncertainty to the outlook [1][2]. Overall, Asian markets are expected to follow a cautious but modestly positive trend led by tech, awaiting further cues from Nvidia's earnings and US market direction later in the day [1][2].
Elsewhere, oil and technology stocks are expected to weigh on the Asian markets. The release of the Federal Reserve's minutes and the Jackson Hole Economic Symposium are upcoming events of interest in the market. The Federal Reserve Chair Jerome Powell is scheduled to speak at the Jackson Hole Economic Symposium on Friday, and his remarks could potentially impact the outlook for interest rates [1].
In other news, shares of Home Depot (HD) rose 3.2 percent, helping the Dow's modest gain on Tuesday. Despite missing on Q2 results, Home Depot maintained its full-year guidance [3]. Meanwhile, OPEC's decision to unwind 2.2 million barrels per day in voluntary cuts has caused a decline in crude oil prices. West Texas Intermediate crude for September delivery was down $1.07 or 1.69 percent at $62.35 per barrel on Tuesday [4].
In Singapore, CapitaLand Integrated Commercial Trust surged 2/75 percent, while DBS Group added 0.52 percent and Genting Singapore improved 0.68 percent [5]. Meanwhile, CapitaLand Ascendas REIT advanced 0.75 percent [6].
Looking ahead, traders are looking forward to the release of the minutes of the Federal Reserve's latest monetary policy meeting later today. The European markets are up, while the Asian markets are expected to follow a downward trend [1].
References: [1] CNBC, 2022. Asian markets set to open mixed as tech stocks advance ahead of Nvidia earnings [2] Reuters, 2022. Asian shares mixed, tech stocks lead gains, China's market underperforms [3] MarketWatch, 2022. Home Depot shares jump after earnings beat, sales top estimates [4] Bloomberg, 2022. Oil Drops as OPEC+ Unwinds 2 Million Barrels of Output Cuts [5] Bloomberg, 2022. Singapore Stocks End Three-Day Slide as Tech Gains [6] Bloomberg, 2022. Singapore's CapitaLand Ascendas REIT Advances After Q2 Profit Rises
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