Singapore: STI Index (.STI) China-US trade talks drag on
Shares were mostly higher in Asia on Monday as investors awaited further developments in trade talks between the U.S. and China.
The Shanghai Composite jumped 1.9 percent to 3,026.99 and the Hang Seng in Hong Kong gained 0.9 percent to 28,494.76. Japan’s Nikkei 225 index added 0.5 percent to 21,125.09 and the S&P ASX 200 in Australia slipped 0.4 percent to 6,180.20.
Weaker than expected Chinese loan and money supply data raised expectations of further action to spur the slowing economy. The 885.8 billion yuan ($132 billion) in new loans in February reported Monday was below forecasts and much lower than the 3.23 trillion yuan in new lending in January.
Elsewhere in Asia, India’s Sensex surged 0.9 percent to 37,002.36 while South Korea’s Kospi was flat at 2,138.10. Shares were lower in Singapore but rose in Jakarta, Bangkok and Taipei.
It was a steady start for the week after a wave of selling on Wall Street Friday left the S&P 500 with its worst weekly showing since January and its eighth loss in nine trading sessions.
The sell-off followed a surprisingly weak jobs report and more signs that the global economy is hitting the brakes.
U.S. and Chinese officials say the trade talks are making progress but no formal agreements or details of negotiations have been released.
China’s central bank governor on Sunday affirmed an official promise to avoid manipulating its currency to boost exports, an issue he said American and Chinese negotiators discussed in the latest talks in Washington aimed at ending a conflict over Beijing’s technology ambitions that has prompted both sides to raise tariffs on billions of dollars of each other’s goods.
Speaking at a news conference during the meeting of China’s ceremonial legislature, Yi Gang gave no indication the two sides had reached agreements beyond previous commitments produced by meetings of the Group of 20 major economies.
U.S. complaints that Beijing manipulates the yuan’s government-controlled exchange rate for a trade advantage have taken a backseat lately to frustration at its industrial policy. But American officials have long pressed China to allow the yuan to fluctuate more freely in response to market forces.
“‘We stress that we will never use the exchange rate for competitive purposes, nor will we use it to boost China’s exports,” Yi said.
He repeated official promises that China’s stock and bond markets would open wider to global investors and its currency would trade more freely but gave no details or a timeline.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 3,257.78.
The projected lower bound is: 3,132.27.
The projected closing price is: 3,195.03.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 21.5941. This is not an overbought or oversold reading. The last signal was a buy 5 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 42.57. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 89 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -144.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 8 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed down -4.450 at 3,191.420. Volume was 34% below average (neutral) and Bollinger Bands were 35% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 3,226.95 3,192.83 3,194.85
Volatility: 11 13 15
Volume: 215,309,056 204,999,040 229,449,232
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
STRAITS TIMES is currently 0.1% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume out of .STI (mildly bearish). Our trend forecasting oscillators are currently bearish on .STI and have had this outlook for the last 6 periods.