Singapore Markets Morning Briefing - what you need to know for Tues March 13, 2012

It was quiet on Wall Street overnight following flat STI trade.

IG Markets Singapore said:

Global markets have started the week in a lacklustre mood with thinner trade and sideways action across major bourses.

After the STI’s uneventful day yesterday which saw it trade flatly, last night it was Wall Street’s turn to pick up the lacklustre baton with a fairly quiet session.

Among the major averages, the Dow Jones Industrial Average was up 0.3% at 12960. The S&P was flat at 1371 and the NASDAQ fell 0.2% to finish at 2984.

Markets seem to be in a holding pattern waiting for the next big news which could happen tomorrow with the FMOC meeting, followed by US retail sales data.

After the vast improvement we have seen in US economic data recently, some analysts feel we could see a significant shift in the Fed’s stance on easing. As a result, the meeting has the potential to be a key event for markets this week.

RBS meanwhile reported (for 12 March 2012 trading):

Treasuries bull flattened most of the day with the best levels seen in early NY when 10yrs were better by almost 4bps, only to slowly give up the gains throughout the rest of the day.

Flows were muted, with real money buying of the front end, real money selling in 5s, central bank buying of 5s and leveraged buying of intermediates.

Total Treasury broker volume today was 76% of the 10-day average.