Daily Markets Briefing: STI up 0.52%

Expect muted gains today.

According to OCBC, the recovery on Wall Street overnight could continue to lift local sentiment; the Nikkei has rebounded 0.6% in early trade.

However, with the US index futures turning lower, further strong gains for the STI may be unlikely, given that the index was already up 0.6% yesterday; and then, there is the weekend factor, OCBC said.

Here’s more from OCBC:

As before, a convincing breach of the 2600 hurdle is key to a sustained recovery; failure to do so could send the index back towards 2500.

But we sense that the overall sentiment remains cautious; despite the gains yesterday, there were more losers than gainers.

Above 2600, the next resistance is at 2650.