Daily Markets Briefing: STI down 0.8%

Brace for another pullback today.

According to OCBC, persistent weakness on Wall Street overnight is expected to weigh heavily on the local bourse this morning, adding further to the STI’s 0.8% decline yesterday.

Although the index is near the immediate support at 2950, we do not expect it to hold; instead, the STI could gap down and head for a test of the next 2900 support.

Here’s more from OCBC:

And should this level also give way, we do not rule out an eventual slide back to 2800; overall tone is likely to remain quite cautious due to a possible rate hike in the US in Dec.

On the upside, we peg the first hurdle at 3000, ahead of 3049; both of which has been very formidable in the past.