Singapore’s STI remains mired in negative territory, not getting any fillip from China’s October PMI data, with the HSBC final PMI at an eight-month high of 49.5, while the official PMI rose to 50.2, growth territory, from September’s 49.8.
“The muted reaction is because it’s more or less priced in,” says Lee Sue Ann, treasury economist at UOB, noting China data last week already started showing signs of stabilisation. “The kind of muted reaction we’re seeing is due to overall sentiment (remaining) weak due to overall issues in the West,” she says. “At the end of the day, the situation in the US and Europe is still hovering.”
She says the marginal trading in equities is generally typical ahead of the US non-farm payrolls data, due Friday. She notes the ADP payroll data revisions also disappointed the market, adding there’s quite a heavy economic data docket in the US this week, while concerns over the US election, the fiscal cliff and the euro-zone persist; “there’s a lot of caution and a bit of a risk-off kind of sentiment.” Singapore’s STI is down 0.3% at 3,028.
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