STOCKS to watch on Tuesday include:
Global Logistic Properties (GLP): The second-largest owner of US industrial real estate agreed to buy US$1.1 billion of warehouses from Hillwood Development Co. It expects to complete a US$700 million deal for fully leased properties in December, the company said. On Monday, GLP also said it will develop a 27,000-square-metre modern logistics property in Osaka at a development cost of around five billion yen (S$66.8 million).
CWT: The logistics company said a subsidiary under its financial services arm, Straits Financial Group, has been granted the full capital market services licence for trading in futures contracts by the central bank.
This allows the subsidiary, Straits Financial Services Pte Ltd (SFSPL), to offer a full and complete suite of financial and commodity derivatives, including centrally cleared over-the-counter contracts and contracts-for-differences. SFSPL will also be able to expand its customer base beyond the “accredited investors” and “corporate expert investors” category.
Oil prices continued to rally on Thursday with Brent oil topping US$50 a barrel following data showing lower US crude stockpiles.
Brent North Sea crude for delivery in October rose US$1.04 to US$50.89 a barrel in London, its first close above US$50 in nearly two months.
US benchmark West Texas Intermediate for September delivery gained US$1.43 to US$48.22 a barrel on the New York Mercantile Exchange.
Thursday’s gains continued the upward trend in place for most of August, due in part to talk from Saudi Arabia and other producers that major oil exporters could agree to cap output next month.
Gold held the biggest daily increase since June and traded near the highest in almost three weeks as the dollar weakened amid diminishing bets on an interest-rate rise in September.
Bullion for immediate delivery traded at US$1,349.16 an ounce at 9:37am in Singapore, after surging 1.7 per cent on Tuesday, the most since the results of the Brexit vote came out on June 24, according to Bloomberg generic pricing.
The metal resumed its rally this year on reduced chances of the Federal Reserve tightening monetary policy this month after the Institute for Supply Management’s index of US non-manufacturing industries slumped to its lowest level since Feb 2010.
A gauge of the greenback traded at the lowest level this month. The Federal Open Market Committee meets on Sept 20-21.
Crude prices rose in Asia on Tuesday after Russia and Saudi Arabia pledged to work on addressing a global supply glut, but analysts said gains would likely be limited after the two sides provided scant detail about their plans.
Saudi Energy Minister Khaled Al-Falih and his Russian counterpart Alexander Novak agreed to “act together” to steady the market but stopped short of agreeing to a production freeze.
On the sidelines of the G-20 summit in China, the ministers said they will act “together or in cooperation with other oil productions” and agreed to set up a “joint monitoring group” to offer recommendations to prevent price fluctuations.
News that the two sides were about to make an announcement sent both contracts soaring Monday but the gains were all but wiped out after the statement.
Gold held an advance after the US reported weaker-than-expected jobs data, reducing speculation the Federal Reserve may increase interest rates as soon as this month.
Bullion for immediate delivery was 0.1 per cent lower at US$1,323.66 an ounce at 9:25am in Singapore, according to Bloomberg generic pricing. The metal rose 0.9 per cent to US$1,325.21 on Friday, the highest level at close since Aug 23.
Gold has rallied 25 per cent this year as the Fed refrained from further tightening, benefiting bullion which doesn’t offer returns, and as the Brexit vote and turmoil in financial markets pushed investors to haven assets.
American employers added 151,000 workers to nonfarm payrolls last month following a 275,000 gain in July, a Labor Department report showed Friday. The median forecast in a Bloomberg survey called for 180,000.
Gold headed for a second weekly decline ahead of a key US payrolls report that’s expected to give investors direction on the Federal Reserve’s tightening path.
Bullion for immediate delivery was little changed at US$1,314.40 an ounce at 9:03am in Singapore, according to Bloomberg generic pricing. The metal is down 0.5 per cent this week after touching US$1,302.56 on Thursday, the lowest level since June 24.
Gold’s recent declines have eroded its 2016 rally as traders price in a higher probability of an interest rate increase in the world’s largest economy, damping the appeal of bullion, which doesn’t offer yield.
The US nonfarm payrolls report later Friday will be important in determining whether the Fed will raise borrowing costs as soon as this month. US employers probably added 180,000 jobs in August, according to economists’ estimates.
Gold held last month’s decline as investors await US jobs data due Friday for further clues on the timing of an interest rate increase.
Bullion for immediate delivery was little changed at US$1,309.70 an ounce at 9:15am in Singapore, according to Bloomberg generic pricing. The metal dropped to US$1,304.29 on Wednesday, the lowest level since June 24, and lost 3.1 per cent in August.
Gold’s gains in 2016 have been dented after Federal Reserve officials indicated a greater likelihood of further monetary tightening before the end of the year.
Traders will scrutinise Friday’s nonfarm payrolls report in light of Fed Vice Chairman Stanley Fischer’scomments on Tuesday that the central bank will base decisions at its Sept 21 meeting on economic data.