Daily Markets Briefing: STI up 0.9%

Brace for a pullback today.

According to OCBC, gains on Wall Street overnight after the expected Fed rate hike should continue to provide a lift to local sentiment; the Nikkei has jumped 2.2% in early trade.

As before, with 2800 looking to be quite well protected, the STI could potentially stage a pretty strong technical rebound from here, OCBC said.

Here’s more from OCBC:

But we note that the STI has already added 0.9% yesterday in anticipation of the rate hike; hence further strong gains may still entice selling into strength.

Again, the inability to convincingly clear and hold above the key 2900 hurdle could still see selling into strength and send the index back towards 2800.

Before 2900, we peg the initial hurdle at 2850.