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The Week Ahead: Will DBS Group Let The Side Down?

Following the market-beating numbers from Oversea-Chinese Banking Corporation (SGX: O39), and the equally robust quarterly results from United Overseas Bank (SGX: U11), the bean counters must be wondering why and where they went so badly wrong with their gloomy forecasts.

Next week, DBS Group (SGX: D05) steps into the spotlight when it will bring out its report card. In August, the CEO of Singapore’s largest bank said it was “well prepared to meet the challenges ahead.” In the second quarter, total income was 8% higher at $2.92b compared to the year before.

StarHub (SGX: CC3) will also be opening up its books next week. Singapore’s second-largest telecom company posted a 9.6% rise in profits last time out, even though revenues came in a tad lower.

Singapore Airlines (SGXL C6L) has numbers to report too. In July, the local flag carrier said the outlook remains challenging amid economic weakness and geopolitical concerns in some markets. Other blue chips with results next week are Genting Singapore (SGX: G13) and UOL Group (SGX: U14).

On the economic front, the US Federal Reserve has an interest-rate decision to make. With the US economy roaring back to growth in the third quarter, the Fed could have a tough time convincing the market as to why it might keep interest rates on hold again.

The Reserve Bank of Australia, the Bank of Japan and the Bank of England have some key decisions to make about interest rates too. Japan’s central bank has vowed to overshoot inflation. Meanwhile, Australia’s central bank is not expected to move interest rates.

The UK’s central bank might hold off on another rate cut, given that the fall in the value of sterling has raised the spectre of inflation. According to the BBC, one supermarket has hiked the price of a jar of Marmite by 12.5%, while the cost of Typhoo tea will have to rise too.

Other economic numbers to look out for include the closely-watched US non-farm payroll, China’s latest Purchasing Managers Indices for the manufacturing and services sector, and Japan’s inflation index.

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