Traders on the lookout for corporate earnings results

M1, K-Reit Asia, and K-Green Trusts are releasing Q2 results on 16 July 2012.

OCBC Investment Research said:

The more than 1.5% surge on Wall Street last Friday night is likely to provide further inspiration to the local bourse this morning; the Japanese market is closed for holiday today.

Following the modest correction on Thursday, the STI again rebounded rather strongly on Friday to close nearly 0.8% in the black.

With today's tone likely to remain be more upside biased, we could see the index attempting a bullish break on the 3000 key psychological resistance this morning, before reaching for the 3030 key peaks resistance in the days ahead.

On the downside, the immediate support is now pegged at the 2965 minor resistance-turned-support with the subsequent base marked at the 2930 minor trough.

IG Markets Singapore meanwhile noted:

Corporate earnings are likely to keep traders busy this week as Singapore kicks off the Q2 season today while more US heavyweights announce their results.

On Friday healthy earnings from JP Morgan coupled with the relief of China GDP data coming in at expectations gave Wall Street and Europe a much-needed lift.

The Dow Jones Industrial Average and NASDAQ both rose 1.6% while the S&P 500 put on 1.7%. In Europe the FTSE 100 gained 1% while the DAX rocketed 2.2%.

This upbeat mood across Western markets is likely to spill over into Asia today. Singapore saw the local market put on some decent numbers last week as it ended Friday a stone’s throw away from 3000.

This key level could be punched through today ahead of some key corporate earnings. M1, K-Reit Asia and K-Green Trusts are all releasing Q2 results today.

The earnings season will give a clearer insight as to how local companies are dealing with the sluggish global economy which has seen trade eke away from traditional markets. While Friday’s GDP data may have disappointed local traders, poor performance from some of our biggest companies would cause more than a few jitters.