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Saudi Aramco Clocks USD2 Trillion in Market Capitalization

  • DAR Wong
  • 16 December 2019

CURRENCY MARKET OBSERVATIONS – 16 December 2019

 

Saudi Aramco Clocks USD2 Trillion in Market Capitalization

Fundamental Outlook   The U.S. consumer prices gained 0.3 percent in November and above forecast. Core prices, excluding fresh food and energy, rose 0.2 percent and stagnated.

The U.S. trade representative team has reached phase one of trade deal with China and signed by President Trump. Meanwhile, the tariff imposition on 15 December has been delayed and some duties will be cut before the trade deal is signed with China.  

China exports shrank for the fourth consecutive month in November. Overseas shipment fell 1.1 percent from a year ago and revealed the effects from trade war with U.S. counterpart. Another separate report on consumer prices in November rose 4.5 percent on annual base and matched forecast. 

European Central Bank holds interest rate unchanged in the first debut meeting held by new President Christine Lagarde. European stocks rose on Thursday evening after the news release.

U.K. ran its general election on Thursday. PM Johnson leads Conservative Party in the biggest win since 1987 and has set to execute BREXIT before 31 January.  

Saudi Aramco Company finally went into public trading on last Wednesday. The stock prices reached USD2 trillion market capitalization on second day of trading and biggest valued company in the world.

Technical Forecast   USD/JPY traded higher towards last weekend but unable to pierce above 109.60 level. Market is well contained from 108.30 – 109.60 range and still awaits a breakthrough in either direction. This week, we forecast the trend will move sideways within the aforementioned range but breaking above the 109.60 resistance might drive up to 110.50 target.

EUR/USD rose last week but took a dip on Friday as Dollar recovered moderately. This week, we foresee the trend will move into consolidation from 1.1050 – 1.1200 in mixed trading activity, in case of Dollar fall, beware of rising trend that may test 1.1300 region. Risk control is advised for longer positioning of trades.

 

GBP/USD reached above 1.3500 after the positive news of election win by PM Johnson but retreated on Friday on profit-trading. This week, we project the trend will be supported at 1.3300 area and continue to drive higher at 1.3600 region. Profit-taking will emerge on topside as traders begin to take profit from rising trend in past weeks.

 

Gold prices have been trading sideways last week and hovered around USD1470 /oz. This week, we aim for range trading contained from USD1460 – USD1490 /oz in mixed sentiment. The eventual directional trend will emerge only after it breaks beyond this target range. Gold could travel either direction as most market fund is getting keen to trade in Crude prices.

                                           

WTI Crude prices edged up very slowly last week as traders begin to stake interest in oil market. This week, the resistance lies at USD60 /barrel and hopping above this level for settlement will increase potential of new rise. Higher target is identified at USD64 /barrel but failure to conquer above USD60 /barrel could land the prices in uncertainty again at USD67 /barrel.

 

Silver prices traded in narrow range mainly from USD16.50 – USD17.00 /oz last week. Moving forward, the trend movement will be largely dependent on Gold prices as lead factor. In our opinion, downside is still safeguard at USD16.00 /oz while piercing above USD17.00 /oz will extend to USD18.00 /oz area.

 

Crude Palm Oil (FCPO) Futures on Bursa Derivatives topped off from above RMB2900 /MT last Friday. Market will roll over to March20 as active month from Monday onwards. February contract settled at RMB2853 /MT on Friday. This week, we presume the trend may move into the correction and test USD2770 /MT level. On the other hand, shooting above RMB2900 /MT might initiate a new fierce ascension to RMB3100 /MT level.

 

DAR Wong has 30 years of trading and hedging experiences in global financial markets. The opinion is solely at his own.  He can be reached at dar@pwforex.com


About the Author
DAR Wong (Singapore)
An international speaker with 27 years of trading experience in the global financial markets, DAR is a Market Master and author of “Living Daylight in Stock Market: Monetizing Your Profits in 8 Days”.

DAR Wong is an active market trader, registered fund manager, educator and author.He began his career in 1989 as an institutional Futures trader with Bank of America. DAR Wong specializes in trading global derivatives and financial markets. He has 26 years of experience accumulated through tenure with Bankers Trust, Barclays Bank, Citigroup (Smith Barney Shearson Inc) and as an independent trader.

DAR is the author of “8 Ways to Invest in China’s Emerging Market” and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional traders and active investors.

He is a popular and sought after international speaker who has presented to financial professionals and investors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China, Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East (UAE).

DAR is registered with NASD (now known as FINRA) series 3 and 5 as approved by National Futures Association (NFA) of USA and holds a current portfolio as Fund Strategist and Advisor with Dektos Investment registered with Monetary Authority of Singapore.

DAR is profiled as “One of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading “. In January 2015, DAR was honored with Outstanding Award for International Financial Market Analysis granted by ASEAN Commerce (Thailand).

DAR is the author of "8 Waysto Invest in China's Emerging Market" and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional tradersand active investors.1

He is a popular and sought after international speaker who has presented to financialprofessionals and inverstors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China,Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East(UAE).2


Year
2003 - Set up ASPRI to provide hedging advisory for corporate clients and training for financial professionals
2009 - Released first book “8 Ways to Invest in China’s Emerging Market”
2010 - Profiled as “one of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading” along with Larry Williams, Andrea Unger, Michael Cook, and Daryl Guppy etc
2011 - Received “Spirit of Enterprise”awarded by Singapore Management University in Singapore
2012 - Honored with Individual Diamond Career (Thailand) awardedby Royal Privy Council of Kingdom of Thailand
2013 - Appointed Vice Chairman of ASEAN-China Commerce Association and led a delegationtothe annual China-Asean Expo in Guangxi Province, China
2014 - Fund Manager cum Director in Dektos Investment Corporation registered with Monetary Authority of Singapore
2015 - Released new book “Living Daylight in Stock Market - Monetizing Your Profits in 8 Days” in January
2015 - Honored with Outstanding Award in International Financial Market Analysis awarded by ASEAN Commerce (Thailand)
2016 - Honored with Medal of Integrity by Royal Councilin Palace of Palembng, Indonesia

References

1.TV programs on ChannelNewsAsia (Singapore);Radio on 95.8 Capital (Singapore); Newspapers such as The Borneo Post (Malaysia), 资汇报 (Malaysia); Regional financial magazines such as The Analyst (India), 东盟商界(ASEAN, China), 资本杂志 (Malaysia).

2.Spoke at events for CME Group, Euronext LIFFE, Tokyo Commodity Exchange, Singapore Exchange, Korea Exchange, Bursa Malaysia, Thailand Futures Exchange, Jakarta Futures Exchange, Indonesia Commodity and Derivatives Exchange, Tokyo Commodity Exchange, Interactive Brokers, Xinhu Futures, Hangzhou Money Fair, China (Shenzhen) International Finance Expo, China (Guangzhou) International Finance Expo, Euromoney, CIMB, Maybank, RHB, UOB Bank, Asia Trader & Investor Convention, Global Rubber Conference, International Rubber Conference, Malaysia Rubber Board, International Rubber Research and Development Board,Malaysia Ministry of Agriculture, Rubber Industry Smallholders Development Authority, Vietnam Rubber Association, Cambodian Rubber Association, Bureau of Agriculture Research Philippines, Myanmar Rubber Planters & Producers Association etc.