Photo Source: intellasia.net
Chart Source : Poemsview 11th June 2018
The highly anticipated Trump-Kim Summit is finally going to happen on the 12th June 2018.
A little like a korean drama where the summit was moving on as planned, got cancelled and finally it’s going to happen.
Both Donald Trump and Kim Jong-un are in Singapore along with thousands of journalist covering this historic event.
With regards to the impact on our local markets, this significant event might not have that much of an impact on our markets. Most are expecting a successful summit between President Donald Trump and North Korean leader Kim Jong-un but wouldn’t expect a very detailed plan on the denuclearization on North Korea’s part.
Most would expect a positive spin on the summit which could lead to further discussions. What might be negative is that talks break down and nothing is achieved.
What might impact the market more would be the upcoming Fed meeting ending Wednesday which market are expecting Fed to increase rates.
Trade Wars headlines could continue to rattle the markets. With the trade war going on, this could continue to bring uncertainty to the markets.
World Cup is starting on 14th June at 10pm which also could have some impact on the markets.
Overall, given June is a quieter month given its the June holidays where most traders are away with their families, we could see STI having some swings as volatility continues to take center stage. With lighter volume this increases the chance of bigger swing.
We might See STI heading down to reach our lower support and only when it breaks out of the downtrend line then we might be more convinced of an uptrend.
Our STI support might be around 3397-3405.
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