miniddy9的部落格

pub_date:STI shoots up as Wall Street hits record highs on news of no tapering of stimulus for nowTHE Straits Times Index yesterday surged 57.迷你倉93 points or 1.8 per cent to 3,251.78, riding on a wave of euphoria that has its roots in the notion that the US economy is in a poor state and, therefore, is in need of continued monetary sustenance.This follows from Wednesday's US Federal Reserve Open Market Committee meeting, at which Fed chairman Ben Bernanke surprised markets by announcing that there would be no tapering of the US$85 billion-a-month stimulus known as QE3.Because this means the money pumping would continue, Wall Street rose to all-time highs, leading to yesterday's robust session in this part of the world.Turnover improved to 5.5 billion units worth $2.1 billion, though the average unit value of 38 cents suggested continued focus in low-priced issues more than anything else. The broad market's advance-decline score, excluding warrants, was 377-144.The theme "the worse the economy, the better the market" has been in force for many years now, and so it was again this past week as investors, responding to weak US economic data released during the past fortnight, bet on the Fed back-tracking on its tapering talk.Analyst reports were, predictably, about tapering - or the absence of it - as the case turned out.Head of OCBC Investment Research's Carmen Lee said that, with the Fed holding off tapering for now, this is a temporary reprieve for the market. But she noted that the US central bank referred to America's jobs situation for the timing of the start of tapering.Ms Lee said: "This seems to indicate that once the job data improves, ta自存倉ering appears inevitable, and markets should be braced for this eventuality."We are maintaining our medium-long term "neutral" view on the property and S-Reit sectors as well as our "overweight" view for the oil-and-gas and banking sectors."ABN Amro said that although it had held the view that the build-up of market expectations would leave the Fed with no other choice but to take a first step, it views the delay as positive for the economic outlook and growth assets, as it shows that the central bank is determined to support the recovery and to prevent a premature tightening.It said: "However, it is clear that the central bank is currently not scoring high marks on its ability to communicate with financial markets."Rabobank, noting that the two remaining Fed meetings this year have been fixed for Oct 29-30 and Dec 17-18, said: "The second has a press conference, which would make it more suitable for the first taper. However, Fed speakers had indicated earlier that October should not be ruled out. Nevertheless, we return to our earlier call for a December tapering."DBS Group Research, the only house to predict correctly that there would be no tapering this week because the US economy was still very weak, said yesterday it does not look like tapering will begin next month."Private sector GDP growth is slowing, not accelerating. And long-term interest rates have risen by 100 basis points and appear to be having a negative impact on housing," said the bank in its Daily Breakfast Spread yesterday."That's a pretty solid package of information that told the Fed to sit tight. Is that package going to be materially different by October? Probably not."迷你倉