Has the war become less of an issue?
Even though the war is still on-going in Ukraine, there seems to be less and less attention on it. Understandably, much have happened on that front and countries have taken various forms of actions on their own to try and end this as soon as possible. That said, something else is brewing on the political side of things where the US is also trying to influence the Chinese to buy into their peace rhetoric. After the talks between both leaders, there seems to be still underlying difference between their views towards the war as well as perspectives towards one another. As such, the attention has somewhat been directed towards the political side of things rather than the actual war that is still devastating the lives of Ukrainians. This has led to increased uncertainty in most markets that has an obvious leaning towards either the US or China. Thankfully, Singapore is not impacted by this too much at the moment. In today’s market outlook, lets look at how STI has fared and the obstacles ahead.
STI – Updated Daily Chart
There two gap ups on Wednesday and Thursday last week. This was followed by the terrible Tuesday where the whole world was in panic. At closing STI was flat as there was an upcoming Biden-Xi talk that might potentially tilt the situation drastically that is happening after market close.
STI – Updated Monthly Chart
The STI is back on track at the moment but there are no guarantees since the war is still going on and global leaders are still not completely in sync on the matter of diplomacy and methods to keep world peace in check.
Author’s Call as of 19th March 2022
- The market recovered significantly in the past week and the STI continues to remain resilient
- Daily chart shows gap ups due to overwhelming uncertainties in the rest of the major economies
- Monthly chart shows that STI is back on track to head towards a new high if the war ceases and the world gets back on track to recovering from Covid
- Investors should start getting fund back into their war chest if they have deployed their emergency funds to buy the dips. Do not extend your positions in case of a sudden turn around.
- The volatile market shows that market players are still unsure about the impacts of the war on upcoming earnings but one things for sure and that is the war has not slowed down enough for comfort.
- The daily chart shows that after the dip on Tuesday, investors realised the overreaction and quickly bought back from Wednesday
- The uptrend support line on the weekly chart is holding for now but no reason for much optimism.
- Investors should look for short term opportunities in the market if there is an obvious overreaction in the market.
