Market Trends
Stay abreast of market movements with the latest reports and relevant articles.
Rubber bounced to a 6.3% gain last Thursday, 25 Feb 2021
1 March 2021
In this edition of Market Bites, we analyse the reasons for Rubber’s rapid gain of 6.3% last Thursday, 25 February 2021.
Key factors for the surge in prices
Rubber prices rose on Thursday following market talk that Chinese funds were buying Shanghai Rubber Futures. As Shanghai Rubber Futures rose sharply, some trading spilled over to TOCOM and SICOM Rubber Futures causing prices to go into technically overbought levels. SICOM TSR20 rubber for May Delivery on Singapore Exchange (SGX) rose 6.3% to a high of $193.5/kg last Thursday before closing at $188.3. The market could not sustain the rapid appreciation of prices and closing was at the low daily range.
Crude Oil bubbles to 13-month highs
18 February 2021
In this edition of Market Bites, we analyse the reasons for Crude Oil to bubble to 13-month highs and share where prices may head to from here. Read on to learn more.
Key factors for the surge in prices
The crude oil market typically trades on expectations ahead, instead of the present factors affecting market, and this has been the primary reason for the sharp rally in oil prices in recent weeks. The current surge in crude oil to 13-month highs of above $60 a barrel was supported by a cold snap that shut wells in the biggest U.S. producing state of Texas. Texas is home to 31 refineries. The surge in price was further aggravated by Middle East supply concerns after the Saudi-led coalition had destroyed an explosive-laden drone fired at the kingdom by the Houthi group in Yemen.
How can Phillip Futures help you gain exposure to cryptocurrencies?
2 February 2021
Scenario #1: If you want exposure to price movements in cryptocurrencies without holding any.
Phillip Futures offer cryptocurrency Contract-for-Differences (CFDs) that lets you gain exposure to both the upside – and downside of the asset’s price movements. For instance, if you are of the opinion that the cryptocurrency market is experiencing a market top, you can open a short position with our CFDs. Similarly, if you think that the market is experiencing a temporary dip, you can open a long position and close out anytime.
Should you add cryptocurrencies to your portfolio?
2 February 2021
#1 Protect a portion of your assets from inflation
The latest rally in cryptocurrencies is arguably due to a wave of institutional interest. The volatility of Bitcoin however, tends to make its addition to any portfolio a relatively difficult affair to justify to shareholders, colleagues, or any other stakeholders in so-called institutional investors. Why are they buying it now?
Key Sectors to Watch in 2021
27 January 2021
Despite the development of several vaccines to address the growing concerns of the global coronavirus outbreak, the months ahead are likely to be filled with headlines of governments working round the clock to administer the vaccines to their citizens. With the battle against the coronavirus to continue for most of 2021 and the march to recovery being slow, these are the key sectors for investors to watch according to Senior Strategist, Simon Teo.
Cryptocurrency Swings – Why and What’s Next?
5 January 2021
The cryptocurrency market is trading in all directions. Bitcoin saw a record breaking surge to $34,792 on 3 January 2021 and a volatile 2020.
While he maintains a longer-term bullish view, our expert shares why things can still go either way.
Gold breaks $2000 per ounce for the first time in history. Why did it happen and how should you trade it?
12 August 2020
If you had the chance to say one thing to yourself from 2 years ago, what would you say? Some might tell themselves about the Covid-19 pandemic, avid travellers might tell themselves to take that expensive dream holiday ASAP, others might tell themselves to stock up on masks and essentials. Experienced investors would skip all of that and tell themselves to buy gold immediately.
Spot gold reached US$2000/oz in a historic first on August 5, and proceeded to smash every record in the following days. By Aug 7, it had hit an intraday high of $2,072.50. At this point, it looks like nothing can dull the shine of this safe haven asset. But what caused its meteoric ascent?
Here’s how to capture trading opportunities from home
24 July 2020
If there is anything we learnt in 2020, it is that we can all survive spending more time at home. Despite video conferencing for most of the day and juggling home-based learning with school-going children, the new working arrangement and the lack of rush hour commutes also gave us pockets of time for other endeavours.
US Banks see potential weakness as Fed caps dividends and bans buybacks
26 June 2020
After US markets closed in the wee hours of 26th June, the Federal Reserve (Fed) informed the biggest names in the US banking industry that there will not be able to increase dividends or resume share buybacks, through the third quarter this year at least. The uncertainty over the course the Covid-19 global pandemic was named as the key reason for this implementation, and in turn has casted a somber outlook for the banking sector in the US.
Impending subsidiary IPO sends Wilmar soaring
24 June 2020
Wilmar have announced plans to separately list its China subsidiary on the Shenzhen Stock Exchange, and has started the filing of an updated draft prospectus. Although there is no assurance at present that the Proposed Listing will proceed, as things are still in progress, the development has nonetheless resulted in a surge in share price as hype was generated.
Retail malls open as Singapore begins its Phase 2 reopening
On 19th June, Singapore started to reopen its economy, with retail malls and shops finally begun to open their doors after approximately two months of closure. What greeted them were crowds returning, as queues were reported outside shops, with consumer confidence still seemingly strong amid the pent-up demand.
Pharmaceuticals remain a key theme amid the Covid-19 vaccine development rush
5 June 2020
With sections of the global economy gradually reopening, it has been made apparent that a full recovery to normalcy will be impossible until a vaccine or treatment is found for Covid-19. This has resulted in renewed interest in the pharmaceutical space, as companies rush to develop a vaccine, in hopes that their vaccine developed will be the first successful and mass-produced one. Amid the intense race where over 100 companies are fighting for the global pipeline, a number of companies appear to be leading. Among which, there is Pfizer and Merck. Pfizer’s developed vaccine uses newer technology, which does not currently exist, known as messenger RNA. Meanwhile, Merck, just bought over an Australian vaccine marker on 27th May 2020, and entered the race as a visibly strong contender.
FORD Motors Among The First To Re-open Business
5 June 2020
On 22nd May, US President Trump gave a speech at Ford motor plant, where he praised Ford for manufacturing ventilators amid the Covid-19 situation. It was also unveiled that Ford is returning to production as US-reopens, with plans to restart its North American production in a safe fashion.
The fact that Ford is restarting is production will be a boost to its upcoming performance. Its decision to shift some of its capacity to manufacture ventilators due to the Covid-19 pandemic also shows its versatility and the resilience of its business model. Meanwhile Ford’s Chinese joint ventures have also been outperforming, which will be a catalyst to Ford.
This is how we should be trading the FX market in 2020
28 May 2020
2020 has turned out to be an unusual year, where businesses, livelihoods and social norms have been overturned. The same can be said for trading markets, with volatility becoming the order of the day.
What should FX traders do in this market? And while 2019 seems like a distant past with concerns that seem trivial amid the Covid-19 pandemic, what lessons can we learn from it? Here’s what Lee Yi Jie, strategist at Phillip Futures thinks.
What’s Next For Oil?
23 April 2020
WTI Crude Oil Futures saw an all-time low of -$40.32 per barrel right before its Tuesday expiration of the May contract and closed at -$37.63 per barrel (20 Apr).
How did this happen?
To cope with severe physical delivery problems as the contract expires, the Chicago Mercantile Exchange (CME) allowed crude oil prices to go below $0.
Catching CFD Opportunities in a Covid-driven Q2
16 April 2020
In Quarter 2 (Q2) of 2020, Covid-19 remains the key driver of market sentiment.
While it is still too early to determine the effectiveness of monetary and fiscal support rolled out by countries worldwide to cushion Covid-19’s blow to the economy, it is important to note that these support measures were planned on the premise that Covid-19 could be controlled by Q2. With many countries still on lockdown, there is little evidence suggesting drastic improvement or peaking of Covid-19 cases globally.
Catching FX Opportunities in a Covid-driven Q2
16 April 2020
In Quarter 2 (Q2) of 2020, Covid-19 remains the key driver of market sentiment.
While it is still too early to determine the effectiveness of monetary and fiscal support rolled out by countries worldwide to cushion Covid-19’s blow to the economy, it is important to note that these support measures were planned on the premise that Covid-19 could be controlled by Q2. With many countries still on lockdown, there is little evidence suggesting drastic improvement or peaking of Covid-19 cases globally.
Calling MT5 users. Now you can trade CFDs on your favourite platform!
16 April 2020
Fans of Metaquotes’ latest platform MetaTrader 5 (or MT5) now have more reasons to cheer. The MT5 platform is now even more powerful with the ability to trade contracts for difference, or CFDs.
CFDs work through an agreement between two parties to settle the difference between the opening and closing prices of the contract.
Market Jitters Soothed, Cautious Sentiments Remain
10 March 2020
Despite strong pessimism when the US cash markets opened last night (9 March), some market recovery was observed early this morning (10 March). US President Trump floated a payroll tax cut and substantial relief for industries that have been hit by the COVID-19 epidemic – a reversal on his previous statement on the need for economic stimulus.
US Treasury Secretary Mnuchin, also gave commitment to use all tools for the economy. More details on the economic steps are due to be announced tonight.
Global Indices Crippled, Oil Prices Plunged
9 March 2020
Amidst the chaos of COVID-19 crippling global indices and economies, the plunge in oil prices this morning (9 March) sent a shockwave through the global index futures market. The US futures market saw the rare occurrence of a limit down, where prices tested the futures limit prices and would not able to be traded below until cash markets open at 9.30pm tonight – a strong indication that the markets are still fearful of the economic impact the COVID-19 epidemic will bring.
Have oil prices touched the bottom?
9 March 2020
Where are oil prices headed?
Crude oil prices are currently driven by the following:
- Demand erosion caused by the coronavirus
- Breakdown of OPEC+ agreements, coupled with the expectations of Russia and Saudi Arabia ramping up productions
Looking ahead, the oil markets are going to be volatile and will be more sentiment driven and moving on news events. Currently, the lows established 5 year ago are being tested. However this low price would attract some bargain hunting as such lows cannot be sustained by the oil industry. Once Russia and Saudi Arabia come to some sort of agreement and the spread of the coronavirus slows down, markets would rally.
Coronavirus Woes Deepening: Why now?
20 February 2020
Coronavirus Woes Deepening: Why now?
The worst seems to have passed for China, with daily cases of COVID-19 reaching new lows. However, the markets have not reacted favorably to this news and instead, we observe several equities and commodities reaching new lows. One of the biggest questions investors faced on Monday is: “Why now?”. Indeed, most investors would expect markets to react violently when cases of COVID-19 peaked in China, with the cause and means of transmission remaining largely unknown. This can be easily explained: The trade war has already caused enough damage to the Chinese economy and most investors have priced in China’s declining economic growth. Another blow to the Chinese economy will not have a large impact on investors’ sentiments.
There is currently no end in sight, as scientists scramble to find a cure for the infectious virus. With a long incubation period and possible asymptomatic infection, the number of people who are infected with the virus could be larger than what is currently reported.
Allaying COVID-19 fears via futures trading
20 February 2020
Allaying COVID-19 fears via futures trading
The Coronavirus 2019 has currently infected more than 75 204 individuals worldwide, with approximately 99% of the cases contained within China. The fast-spreading respiratory disease has caused widespread panic, visible through the global mask shortage and supermarket runs by spooked citizens.
There is currently no end in sight, as scientists scramble to find a cure for the infectious virus. With a long incubation period and possible asymptomatic infection, the number of people who are infected with the virus could be larger than what is currently reported.
6 Tips On Choosing the Right CFD Platform
11 February 2020
1. Choose a platform that offers multiple asset classes.
The Phillip MetaTrader 5 (MT5) platform offers spot forex, spot gold, spot silver in addition to CFD indices, allowing you to create a comprehensive trading strategy across various asset classes, mitigate risk and capitalise on market movements.
2. Choose a platform that is flexible and functional.
Equipped with an auto trading function and advanced charting and trading tools, the Phillip MT5 gives you more time to hone your trading strategies. The Autochartist pattern recognition tool helps you scan for opportunities round the clock and alerts you to place a trade. You can automate your trading strategies with Expert Advisors and use Technical Analysis to help you trade better.
Phillip Nova – The smart trading platform for a smart nation
3 February 2020
Singapore has, in recent years, continued its push toward becoming a smart nation, by adopting and embracing new technology and artificial intelligence that transforms the way we live and work for the better. These changes can be seen from our public services, including MyInfo and PayNow, and will continue to impact other areas of our lives. Phillip Futures has kept up with these changes by adapting their trading services and platforms to many of these initiatives, in order to provide added convenience to their customers and cater to their needs. Their latest offering, Phillip Nova, is yet another innovation in this direction.
What’s Next For The UK? Here are 3 Possible Scenarios | A Roundtable Discussion
22 October 2019
The Pound’s strength and Gold’s price are dependent on Brexit’s outcome. With the 31 October deadline approaching and assuming no extension is offered, UK is faced with three possible scenarios. How should investors trade?
Over the weekend, we ran a roundtable discussion with five of our experts – Head of Forex Kenneth Tan (KT), Senior Strategist Jerome Lee (JL), Dealer Lim Jinru (LJR), Dealing Manager Wilfred Chong (WC) and Strategist Lee Yijie (LYJ).
Teyu Che Chern awarded “CEO of the Year” on Phillip Futures’ customer-centric focus
2 October 2019
In recent years, Phillip Futures has made huge strides in building a customer-focused business. From being the first in Singapore to support the powerful multi-product platform Metatrader 5 (MT5), to partnering MyInfo for a seamless account opening experience, Phillip Futures has kept its focus on providing platforms and support that customers want and need. Phillip Futures’ Chief Executive Officer (CEO), Teyu Che Chern, was the man who steered the company in its current direction over the last 13 years, with a clear vision of what the business had to become, amid changing global headwinds.
As a mark of recognition from industry practitioners, Teyu was awarded “CEO of the Year” on Sept 25, at the FOW and Global Investor Asia Capital Markets Awards 2019.
I took just minutes to open a futures account online with Phillip Futures!
21 August 2019
Before you can delve into futures trading, you’ll need to open an account with a futures broker. Now, this is why you need to read further, because I just opened an account with Phillip Futures and it was so much quicker and easier than I expected.
Here’s why CME Group’s Micro E-mini Futures are going to be the future for futures trading
1 August 2019
CME Group, the original creators of the E-mini S&P 500 index futures contract, made waves in May when it launched its Micro E-mini futures contracts. The new bite-sized contracts were made available for the S&P 500, Nasdaq-100, Russell 2000 and Dow Jones Industrial Average.
Micro E-mini futures are a tenth the size of CME Group’s existing and highly traded E-mini equity index futures. That means, where an E-mini S&P 500 futures contract has a multiplier of US$50, its Micro E-mini contract would have a multiplier of US$5, as shown in the table below.
Trading mini futures contracts – Here’s how it could help you in your futures trading
30 July 2019
If you’ve held back on trading futures, or have avoided asset classes outside of your experience, here’s something that could help to ease you in. Mini futures contracts, or smaller sized contracts, can help you familiarise yourself with a new asset class while providing the same ability to trade with your favourite strategies.
Here’s what you need to know about it.
Micro E-mini Futures Contract
8 July 2019
Following the success of the E-mini contracts introduced in 1997, CME launched Micro E-mini contracts this May. The Micro E-mini contracts, which can be traded at only one-tenth the value of the classic e-mini contract, increase the accessibility to trading futures trading for even more traders. Offering Micro E-mini futures on the 4 major stock indices – S&P 500, Russell 2000, Nasdaq-100, and Dow Jones Industrial Average – 11.25million contracts were traded globally within the first month of launch, crowning it CME’s most successful product launch till date.
How Easy It Is To Open An Online Account With Phillip Futures
20 February 2019
A brokerage account is an essential requirement if you want to invest in the financial markets. If you are planning to open a new account, consider getting one at Phillip Futures.
Why should you select Phillip Futures over all the other available options? A glance at the points listed below is likely to convince you that this is your best choice:
⇨ Phillip Futures was established in 1983 and is a founding member of Singapore Exchange Derivatives Trading (SGX-DT).
⇨ It is one of the region’s top brokerages for the trading of global Futures and Commodities.
⇨ You have the option of trading in micro, mini and regular contract sizes.
⇨ You can gain access to free educational seminars and events designed to help you learn about financial markets and trading opportunities.
⇨ By opening a single account, you can trade more than 300 products in over 24 global exchanges.
Autochartist Patterns And Indicators
20 February 2019
Autochartist is an extremely handy tool for traders. It can help you to identify opportunities to make the right trades and give you the edge that you need to boost your trading profits.
The primary benefit that Autochartist provides is that the tool’s software is constantly scanning the markets. The moment the algorithm spots a development that could make money for you, it passes on the message instantly. If you familiarise yourself with Autochartist’s features and learn to use its interface well, you are likely to see an immediate improvement in your trading results.
Let’s examine the patterns and indicators that Autochartist provides and see how to use them.
