Daily Markets Briefing: STI down 0.5%

Today's tone likely to improve.

OCBC Investment Research said:

With US stocks continuing to post gains overnight, this could help lift local sentiments this morning.

Following a 0.5% pull-back by the STI yesterday, the market has demonstrated that the 3130 level remains an important hurdle to overcome in the near term.

But with today’s tone likely to show some improvements, we could possibly see the index rebounding back in the direction of the 3130 obstacle again.

And should this hurdle be crossed in time to come, the index will likely move to test the 3180 key obstacle next. On the downside, 3070 is still the immediate resistance-turned-support, with the next base lying at the 3000 key psychological support.