Daily Markets Briefing: STI down 1.06%

Expect more losses today.

According to OCBC, renewed weakness on Wall Street overnight could send more investors heading for the exit, adding to the STI’s 1.1% slide yesterday; the Nikkei has opened 0.2% lower.

Here’s more from OCBC:

While the index managed to hold above the key 2800 support yesterday, we could see a gap down at open and bring the minor 2772 support into play; but as before, the main support to watch remains at 2740.

On the upside, we continue to peg the initial resistance at 2850, ahead of the main one at 2900.

Besides China, market watchers believe that the STI may be inversely correlated to the USD strength i.e. a continued strengthening of the greenback against the SGD could be detrimental to the STI.