Singapore keeps its spot as one of world's largest foreign exchange centres

SINGAPORE (Sept 17): The Monetary Authority of Singapore (MAS) announced that Singapore’s average daily foreign exchange (FX) trading volume has increased by 22% to reach an all-time high of US$633 billion ($871 billion) from US$517 billion in April 2016.

With this, Singapore will keep its position as one of the world’s largest FX centres. It is ranked third with a 7.6% share of global FX volume in April.

Asian stocks skid to six-and-a-half-month lows as Sino-US trade row shakes markets

(Aug 5): Asian shares slid to 6-1/2-month lows on Monday and the yuan plunged as a rapid escalation in the Sino-U.S. trade war drove nervous investors to safe-havens such as the yen, bonds and gold.

U.S. President Donald Trump abruptly decided on Thursday to slap 10% tariffs on $300 billion ($414.5 billion) in Chinese imports, stunning markets and ending a month-long trade truce. China vowed on Friday to fight back.

In response, China’s yuan weakened beyond the key 7-per-dollar threshold in a move that threatens to lead to massive capital outflows.

The Euro is not the hedge you are looking for

SINGAPORE (Feb 9): Europe’s political risks are set to rise as far-right leader Marine Le Pen continues to gain ground ahead of April's French elections and the International Monetary Fund remains divided over the terms of the Greek bailout.

But Sim Moh Siong, senior currency strategist at Bank of Singapore, does not think buying the Euro would be an effective hedge against these growing risks as the EUR/USD currency pair is unlikely to move below parity.

Five things that happened in the markets today


1. The Straits Times Index dipped slightly after hitting a new 52-week high of 3,071.64 on Tuesday. The top gainers on Wednesday were ComfortDelgro, Yangzijiang Shipbuilding, Thai Beverage and Singapore Airlines. Among the laggards were SATS, Keppel Corporation, ST Engineering and UOL.

Euro slips with Asian stocks while bonds rise as Italy votes no

WELLINGTON (Dec 5): The euro retreated with riskier assets, while bonds advanced, amid concern the failure of Italy’s referendum on constitutional reform will destabilize the country, emboldening anti-Europe and nationalist forces.

IREIT Global suffers from sponsor uncertainty

SINGAPORE (Nov 25): DBS Group Research is cautious over IREIT Global maintaining a “hold” call with a target price of 75 cents, citing uncertainty with its new sponsor, Tikehau Capital.

Lead analyst Mervin Song notes that IREIT offers an attractive yield of over 8%, however, coupled with uncertainty over its sponsor, might cap the REIT’s near-term performance.

Politics is now dominant driver for currency markets, watch it closely

SINGAPORE (Nov 17): Currencies used to be influenced by a number of different factors, political, structural and cyclical.  However, HSBC FX Strategy now believes the dominant driver is politics.

This comes after bond markets were bought out by central banks, companies were driven to issue higher dividends to appease yield-hungry investors in equity markets, and central banks had extremely low or negative interest rates.

That leaves the foreign exchange market as the only outlet for disgruntled investors to react to political news.


Global stocks up, nervous markets wager on Clinton presidency

Trading floor

SINGAPORE (Nov 8): Asian stocks rose on Tuesday as world markets braced for the outcome of one of the most contentious US presidential elections in history, with most investors cautiously optimistic of a win by Democrat Hillary Clinton.

European markets are set to begin the session little changed, with financial spreadbetter CMC Markets expecting Britain's FTSE 100 and France's CAC 40 to open flat and Germany's DAX to start the day up 0.1%.

SIA to face earnings headwinds from European unrest

SINGAPORE (July 19): UOB Kay Hian is maintaining its “hold” recommendation on Singapore Airlines (SIA) with a marginally reduced target price of $11.50 from $11.60 previously, on the political and social unrest that has been plaguing Europe in recent times.  

This comes after the 14 July Bastille Day attack in Nice as well as a failed military coup attempt in Turkey on 16 July.

Hutchison Port not so smooth sailing

SINGAPORE (July 14): OCBC has maintained its “hold” call for Hutchison Port Holdings Trust (HPHT), with a fair value of 43 US cents. This comes on the back of a decline in its Hong Kong Port Container Throughput volume and a lack of clarity regarding the implications of Brexit, according to a report dated Thursday.

In a sign of slowing activity, HPHT’s Hong Kong Port Container Throughput has fallen 10.1% on a YTD basis, while China Shenzhen Container Throughput was up only a modest 0.7%.

Be informed of the stories that matter