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Last Week in Numbers: US Stocks Rise on Hope of Fed Rate Cut

Wall Street’s major indexes rallied on Tuesday, 4 June, marking the biggest one-day gain in five months after Federal Reserve Chairman Jerome Powell suggested a possible rate cut. The Dow Jones Industrial Average rose 512.4 points or 2.06% to 25,332, while the S&P 500 and Nasdaq Composite gained 2.14% and 2.65% respectively. The S&P 500 had shed more than 6% in May as trade tensions between China and the United States escalated. The tech-heavy Nasdaq’s rebound came after it recorded a 10% drawdown from its record closing high on May 3.

The International Monetary Fund (IMF) has cut China’s 2019 economic growth forecast to 6.2% from 6.3%. IMF cited heightened uncertainty around trade frictions and that more monetary policy easing would be warranted if the trade war escalated.

The US has levied higher tariffs on US$250 billion of Chinese imports and accused China of forced technology transfers and intellectual property theft. China retaliated with tariffs on US$110 billion worth of US imports. US President, Trump has also threatened to impose tariffs of up to 25% on an additional list of Chinese imports worth US$300 billion.

27 Singapore-listed companies have been added to SGX Watch List for not meeting trading price requirements. If the companies do not meet the relevant criteria, they face delisting or having their shares suspended. Under the minimum trading price (MTP) requirement, firms need to maintain a volume-weighted average price of $0.20 per share or more on an average daily market capitalisation of at least S$40 million over the last six months. The companies, however, notified shareholders that operations are continuing as normal.

Meanwhile, the Singapore government has cut the supply of private residential housing from confirmed sites under the government land sales (GLS) program for the second half of 2019 by 15%. The private home supply of 1,715 units in the second half of 2019 is 310 less than the 2,025 units confirmed for the first half of 2019.

The government said that demand has continued to fall since the property cooling measures were announced in July 2018, while transaction volume declined for the third straight quarter in the January to March 2019 period. It also cited the large supply of 44,000 private housing units in the pipeline, comprising 39,000 unsold units from GLS and collective sale sites.

Shoppers in Singapore can look forward to the opening of Funan scheduled for 28 June. According to a joint media statement by CapitaLand Mall Trust and CapitaLand, the mall has achieved 92% in commitments for retail leasing, as well as 98% in pre-leasing commitments for its twin office blocks. The mall will house more than 180 brands, of which around 60 are new-to-market, new concept stores or flagship. About two-thirds of Funan’s retail brands originate from Singapore.

A 28-year old cryptocurrency pioneer, Justin Sun, bid a record US$4.57 million to have lunch with investing legend Warren Buffett. Sun said that he hopes to educate Buffett on cryptocurrency and the blockchain technology. Buffett has been a well-known sceptic of Bitcoin, calling it “rat poison” once. This was the 20th anniversary of the annual auction to have lunch with Buffett to raise money for San Francisco-based charity Glide, which provides meals for the city’s homeless, offers support to domestic violence victims, and helps people find shelter.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of CapitaLand Mall Trust and CapitaLand. The Motley Fool Singapore contributor Jeremy Chia does not own shares in any company mentioned.