Daily Markets Briefing: STI up 0.9%

Expect a pullback today.

According to OCBC, mixed reactions on Wall Street overnight after the Fed opted to leave key interest rates unchanged is unlikely to provide any strong cues for the local bourse this morning. The Nikkei is down 0.8% in early trade.

Here's more from OCBC:

Fundamentally, the sharper-than-expected contraction in the Aug NODX points to a technical recession for the Singapore economy in 3Q; hence, the overall tone could remain quite cautious.

As such, we could see more investors looking to take profit should the STI fail to convincingly breach the key 2900 hurdle, especially after the index added another 0.9% of gains yesterday.

Failure to convincingly sustain above this hurdle could see the index easing back towards the 2800 support.

Above 2900, 3000 remains the main hurdle to clear.