Several notable events and data points this week will provide valuable insights into Singapore’s economic landscape and market sentiment.
One key release is the Bloomberg June Singapore Economic Survey, which will offer a comprehensive overview of economic forecasts and expectations. Additionally, the Monetary Authority of Singapore (MAS) Survey of Professional Forecasters will provide quarterly projections on key economic indicators such as gross domestic product (GDP) growth and inflation.
Another data point to watch is the final unemployment rate for the first quarter of 2024. The preliminary estimate showed a slight increase to 2.1%, the highest rate in six quarters. The Ministry of Manpower noted that this rise was not unexpected and does not foresee sustained increases in unemployment, citing easing retrenchments and ongoing employment growth.
In the corporate sector, several companies will have ex-dividend dates:
- Union Gas Holdings Ltd (SGX:1F2): SGD 0.0088 per share
- Malaysia Smelting Corporation Bhd (SGX:NPW): MYR 0.07 per share
- Ever Glory United Holdings Ltd (SGX:ZKX): SGD 0.01 per share
Additionally, Ever Glory will issue an ex-bonus of one new security for every two held. These actions could influence trading volumes and stock prices.
Globally, the US Core Inflation Rate, Inflation Rate for May, and Federal Reserve (Fed) Interest Rate Decision are scheduled this week. Along with the Federal Open Market Committee (FOMC) Economic Projections and Fed press conference, these events will be closely watched to see if they impact the ongoing rally in US equities or lead to a pullback. It is widely expected that rates will be held at their current level of 5.25%-5.50%, where they have been since July 2023. Inflation appears to have hit a barrier, with the headline rate at 3.4% in April, preventing it from reaching the Fed’s target of 2%.
China will also release its Inflation Rate for May and the Producer Price Index (PPI) for May is also due. China’s annual inflation rate rose to 0.3% in April 2024, the country’s April’s PPI showed a 2.5% year-on-year decline, compared to market forecasts of a 2.3% fall. Expectations are for the upcoming inflation read to remain stable, with consumer prices unchanged at 0.3% year-on-year, while producer prices are expected to improve to -1.8%.
In summary, the available economic surveys and global financial events provides essential information about Singapore’s economic health and market dynamics. Investors should stay attuned to these developments to navigate the economic landscape effectively.
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.
