Singapore shares are expected to trade cautiously next week amid runaway oil prices and concerns over the ailing US economy, analysts said Friday. They said investors would be closely watching the April inflation and retail sales figures from the United States to be released on Wednesday.
Recent data showed the world's biggest economy held up better in the first quarter than many had expected, with gross domestic product expanding 0.6 percent. But investors say it is too early to say the worst is over. "I don't think we can say the worst is over," said Singapore-based Don McClumpha, deputy chief executive for Asia at British online brokerage ICAP.
Rising inflation could lead to even slower economic growth and analysts believe the rise in food and oil prices will continue. "The general view is that we are still in a period of consolidation in the short term," said Ong Seng Yeow, research head at Kelive Research, a unit of Kim Eng Securities. Song Seng Wun, research head at CIMB-GK brokerage, said the upcoming US economic data would give more indications on the health of the world's largest economy, which is a major market for global exports.
Comments
Comments are closed.