Idea of the Day – Trendspotter
SG – Wilmar Intl (Technical Buy): bottoming out?
Key Things to note (overnight recap)
(Bloomberg) — U.S. equities rebounded from Friday’s selloff as investors took comfort in reports that cases of the omicron variant have been relatively mild. The S&P 500 rose 1.2%, erasing last week’s losses, while the technology-heavy Nasdaq 100 gained 0.9%. The mood across markets was calmer on Monday as investors pointed to good news from South Africa that showed hospitals haven’t been overwhelmed by the latest wave of Covid cases. However, the Cboe volatility index remained elevated. Oil rose after Saudi Arabia boosted crude prices, signaling confidence in the demand outlook. U.S. natural gas fell on forecasts for warmer weather, easing some previous inflationary pressures. And the 10-year Treasury yield advanced to 1.43%. Initial data from South Africa are “a bit encouraging regarding the severity,” Anthony Fauci, U.S. President Joe Biden’s chief medical adviser, said on Sunday. Though, at the same time, he cautioned that it’s too early to be definitive.
The Stoxx Europe 600 index gained 1.3% while shares in Japan, China and Hong Kong fell on tech weakness. Evergrande’s dollar bonds declined sharply and shares plunged 20% to a record low after the firm moved closer to a debt restructuring. China also cut the amount of cash most banks must hold in reserve, acting to counter the economic slowdown in a move that puts its central bank on a different policy path than many of its peers. Later this week, attention will turn to U.S. consumer price index, which is expected to show the largest annual advance in decades, giving the Federal Reserve more leeway to deliver swifter policy tightening in its more hawkish tilt.