The Week Ahead: The Brexit Conclusion

It is often said that the market hates uncertainty. There were three events this week that caused the market to freak out. Two of those have now been resolved, namely the interest-rate decisions at the US Federal Reserve and the Bank of Japan.

That just leaves UK European Union Membership Referendum, which will be resolved on Thursday. Currently, it is still too close to call. But a “Remain” vote would remove one of the obstacles for Janet Yellen to raise US interest rates. It could also put a spring in the step of Singapore banks that include DBS Group (SGX: D05), UOB (SGX: U11) and OCBC (SGX: O39).

Staying in the west, the US reports Existing and New Home sales for May. The purchase of big-ticket items could provide some useful clues about the level of confidence that US consumers have in the economy. In April New Home Sales jumped 16.6%, which was much higher than expected. Sales of previously-owned homes increased 1.7%.

Japan will report trade figures for May on Monday. Last month, Japan reported a trade surplus with the rest of the world. However, exports dropped by 10%, while imports fell by an even greater 23% from a year earlier.

Singapore reports inflation numbers on Thursday. Last month consumer prices fell 0.5% year on year. It is the 18th straight month of declines. That said, core inflation, which strips out volatile items such as accommodation and private road transport, rose 0.8%.

And finally, it’s the fourth week of the Great Singapore Sale. There are bargains aplenty, if you look hard enough. Just as we can in the stock market!

The Motley Fool's purpose is to help the world invest, better. Click here now for your FREE subscription to Take Stock - Singapore, The Motley Fool's free investing newsletter. Written by David Kuo, Take Stock - Singapore tells you exactly what's happening in today's markets, and shows how you can GROW your wealth in the years ahead.

Like us on Facebook to keep up to date with our latest news and articles. The Motley Fool's purpose is to help the world invest, better. 

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.