Singapore market (19 Nov 12)

Singapore market: could have a slight positive bias at the open today, after the US markets closed up on Friday. The S&P 500 also increased 0.2% to 1,363 as of 8.23am Japan time, along with other risk-on instruments, oil and the AUD, after Obama expressed confidence that he and Congress would reach a budget agreement. Obama is now in Bangkok, where he begins a three-nation trip that will include the first visit by a sitting U.S. president to Myanmar. This could have positive sentiment implications for Singapore stocks with Myanmar exposure. Separately, European finance ministers aim to stitch together Greece’s next aid payment this week. The finance chiefs are due to meet in Brussels tomorrow for the second time in a week after they agreed seven days ago to keep Greece’s bailout aid flowing. In the region, Japan and KOSPI are up 1.7% and 0.7% at 8.09am this morning. Technically, the medium term outlook for the STI continues to look weak, after it broke a key support-turned-resistance level at 2,977, and as the RSI and Stochastics move into oversold territory with no signs of a reversal yet. Nevertheless, the STI managed to close higher on Friday compared to its open, hence this raises the odds of a small bounce the near term. Watch for a dip below Friday’s low at 2,931, which could mean further downside to next support at 2,905.