Daily Markets Briefing: STI up 0.3%

No signs of going downhill yet.

OCBC Investment Research noted:

US equities recorded its third week of gains although declines in commodity prices hurt energy counters.

The Dow set another record close and ended the week up 1%. The S&P 500 was boosted by the healthcare (+1.1%) and consumer discretionary (+0.8%) sectors and closed the week with a 1.2% gain. Rounding off the major indices, the NASDAQ Composite recorded a 1.7% gain. Composite volume on the NYSE came in at 3b (3.4b previously).

WTI Crude for Jun shed 35 cents, or 0.4%, to end at US$96.04/barrel while Brent for Jun delivery lost 56 cents, or 0.5%, to end at US$103.91/barrel. For the week, WTI gained 0.5% but Brent lost 0.3%.

Gold for Jun delivery fell by US$32, or 2.2%, to end at US$1,436.60/ounce while Silver for Jul fell 25 cents, or 1.1%, to end at US$23.66/ounce. For the week, both precious metals declined with gold and silver each losing 1.9% and 1.5% respectively.

The continued recovery by US and European stocks last Friday night is likely to keep the local bourse on a relatively buoyant mode this morning.

Meanwhile, the STI climbed for the fifth consecutive session last Friday (closed up 0.3%) and is still not showing any signs of reversing south yet.

As the daily MACD indicator remains largely positive, this suggests that the index could continue to inch higher towards the 3485 immediate resistance.

Beyond that, the next resistance lies at the 3500 psychological hurdle. On the downside, the immediate support is still pegged at the 3405 resistance-turned-support, followed by the next base at the recent 3365 trough.