Singapore market (07 Sept 12)

Singapore market: will likely take cue from the US market to open higher this morning. US benchmark stock indices jumped to the highest in 4 yrs, as the ECB yday agreed to an unlimited bond purchase program to reduce interest rates for struggling nations and fight speculation of a breakup of the euro. In the region, Nikkei and Kospi are +2.0% and +1.9% respectively, as at 8.26 am. Technically, the STI chart doesn’t look good, with recent prices and RSI declining. Nevertheless, Stochastics are oversold, hence see a high chance of a blip up in the STI, boosted by positive macro news flow.