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The Week Ahead: Can DBS Group Continue To Climb?

Guess what? It’s time for those Non-farm Payroll numbers again. Last month they came in at 161,000, which is lower than the previous month’s figures. Whilst the numbers are still important, they now appear to be less crucial in predicting the Fed’s next interest-rate decision.

The same goes for the unemployment rate, which stood at 4.9% last month. The percentage of the working population that are out of work has been at or around the central bank’s target of 5%. It has been below the Fed’s target for some time.

It would seem that the market is now expecting a rate rise in December, regardless. Bond traders reckon that a rate-hike is a dead-cert.  The market’s implied odds of a hike in interest rates by the Fed reached 100% for the first time.

China will report key numbers on the health of its manufacturing and services sectors. Any number greater than 50 should calm market concerns. It should indicate that the two sectors are continuing to expand. But the two sector will need to grow, if China is to achieve its annual growth target of between 6.5% and 7%.

Household spending in Japan is showing little signs of picking up. In September it declined by 2.1% compared to a year ago. It was the seventh straight month of falls. Retail sales are weak too. Next week should provide the market with a better idea of they fared, given that household spending in Japan accounts for almost two-thirds of the economy.

Consumers appear to be losing confidence in the UK economy. In October it decreased to -3 from a reading of -1 in September. It has recovered significantly in the aftermath of the Brexit referendum, though. But it is a far cry from the +10 reading in June 1987.

And finally, Singapore will report Bank Lending figures for October. In September, bank loans came in at $603 billion, which was almost unchanged from a month earlier.

Since the start of November, share in Singapore’s three banks have risen between 4% and 13%. However, healthy bank lending will be important to provide continued market support for Singapore’s three big lenders, namely, DBS Group (SGX: D05), OCBC (SGX: O39) and United Overseas Bank (SGX: U11).

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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. The Motley Fool Singapore has recommended United Overseas Bank.