Daily Markets Briefing: STI up 0.01%

Brace for a pullback today.

According to OCBC, the sharp pullback on Wall Street overnight could dent local sentiment this morning and hasten the usual pre-weekend profit-taking; the Nikkei tumbled 1.4% in opening trade.

Although the STI made a bright start yesterday, the index ended with just a modest 0.1% gain as the positive momentum gradually waned over the day; this again suggests that the market remains largely cautious and unconvinced that 2850 hurdle will be cleared any time soon.

Here’s more from OCBC:

On the other hand, it is imperative that the STI holds above the key 2800 support, otherwise the index could slip further towards 2770 or even 2740 in the coming sessions.

Above 2850, the next key hurdle is at 2900.