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Next Week’s News Today: To Raise Or Not To Raise

Monday marks the first day of trading on the Singapore markets, following the landslide victory by the ruling People’s Action Party. The General Election result is unlikely to have much impact on Singapore shares. Instead, it could be the 100-points rise in the Down Jones Industrial Index that determines trader sentiment at the open, after the long-weekend break.

All eyes will be on the US Federal Reserve in the middle of the week. The next meeting of the rate-setting committee has been widely flagged as the time when Janet Yellen could make a decision as to whether to hike rates. The swathe of conflicting economic data has not made the decision any easier. The cry from those who are advocating that the Fed “wait and see” are as loud as those who are calling for “one and done”.

The latest economic numbers from China pointed to a continued slowdown. Industrial output only rose 6%, which was below analyst expectation. There was also a slowdown in the growth of fixed-asset investment in non-rural areas. But there are signs that the rebalancing of the economy is on track. Consumer spending accelerated 10.8% in August. Could the authorities step in to calm concerns or allow the economy to rebalance of its own accord?

Sticking with consumers, Singapore is pencilled in for Retail Sales figures on Tuesday. There are signs that consumer sales are starting to hit the shops again. In June, retail sales grew 6.9%, which was an improvement on the previous month, when retail sales only grew 5.9%.

Greece returns to the global news agenda on Sunday, when the country holds another parliamentary election. The election was called after Prime Minister Alexis Tsipras resigned last month, which effectively brought an end to the coalition government. The people of Greece must now decide on whether to push ahead with the bailout plan, even if it means more austerity measures.

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