Market Outlook Mid June 2019 (Prepared for ZaoBao)

Mid to long term, market remain bullish. Trade war with mexico is over before it actually start, they reach a temporary truce as both US and Mexico agree to do more to stop the migrants, the optimism of the global Trade war having a solution is one of the reason why we see the US stock market move higher over the past 2 weeks. Another reason is the Fed start to worried about the trade war affecting the economy so Fed are looking to cut interest rate, if Fed decide to cut interest rate we might see the market continue it's bull run. 

STI up for 4 out of 5 trading days last week, this show that Singapore investor is coming back into the market. Since the fall in May, STI shed near 300 points from 3411 to 3104 and we are on a recovery with STI gain close to 120 points over the past 2 weeks. We see that the Properties, Electronic, Telco(Singtel) and Bank's sector are leading the market higher

In coming week(17-21 June), Market may go sideway or might have a slight pull back to see what is the outcome of the Fed meeting held on 18-19 June. Electronic stock might get some sell down or profit taking with US giant chip maker Broadcom fell sharply last friday after announcing lower revenue than market estimated

中长期来看，市场依然看涨。与墨西哥的贸易战在正式开始之前就已经找到解决方案。他们已达成暂时休战，因为美国和墨西哥双方同意采取更多措施以阻止移民。相信全球贸易战会有解决方案并表示乐观，是美国股市在过去两周走高的原因之一。另一个原因是美联储开始担心贸易战将会影响经济，因此美联储正在思虑降息，如果美联储决定降息，我们可能会看到市场继续上涨，美股可能再创新高。

上周STI在5个交易日中上涨了4日，这表明新加坡投资者正重返市场。自5月份下跌以来，海峡时报指数从3411跌至3004点近300点，我们正在复苏的阶段，过去两周STI收益率接近120点。我们看到，房地产，电子，电信（Singtel）和银行板块正在引领市场走高

在即将到来的一周（6月17日至21日），市场可能会横盘，或者可能会略微回调看看6月18日至19日举行的美联储会议的结果。美国巨头芯片制造商Broadcom在宣布收入低于市场预期后于上周五大幅下挫，电子股可能会出现抛售或获利的情况。