Stocks climb as China rally continues: Weekly Recap

I’ve noticed quite a bit of news about layoffs in Singapore lately. Just this week, Dyson and Samsung announced they’re cutting headcount in Singapore, with Shein having done the same earlier.

As someone who started my career during the global financial crisis, financial security is always something on my mind. That’s why I believe it’s crucial to build a secondary income stream through financial investments.

Heading into October, we’ve seen savings account interest rates and fixed deposit rates coming down. In this week's update, we share what to expect for the upcoming T-bill auction on 10 October and compare options to find the best place to park your spare cash.

With falling rates, I’m moving more of my capital into riskier assets for potentially higher returns. Alongside bond funds and REITs, the Chinese stock market has rallied significantly. We’re also taking a closer look at three Singapore stocks with substantial exposure to China.

No matter your investment goal or risk appetite, it's always wise to have a financial plan in place for rainy days.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

😀 Recession concerns eased

What happened? 

The US added 254,000 jobs in September, significantly above market expectations for an increase of 140,000. 

The unemployment rate in the US also dipped to 4.1% from 4.2% in August. 

What does this mean?

The latest data was seen as an indication the US labour market remains resilient, easing concerns that elevated interest rates may drive the economy into a recession. 

As a result, investors moderated their expectations of sharp interest rate cuts by the Federal Reserve to bolster the economy. 

According to the CME Fedwatch Tool, the probability that the Fed will cut interest rates by 0.25% in November rose to 96% from 68% the day before, while the likelihood of a 0.5% interest rate cut fell.    

Why should I care? 

US stocks saw moderate gains with easing recession fears, even as rising geopolitical tensions in the Middle East tempered optimism. 

In the meantime, the Hang Seng Index (HSI) saw further gains following stimulus measures announced by the Chinese government last week. To find out how to gain exposure to China, check out our guide to China ETFs. 

🚗  Moving This Week

• CapitaLand Ascott Trust (CLAS) has agreed to acquire the 329-room lyf Funan Singapore at an agreed property value of $263 million. The proposed acquisition is expected to be accretive to CLAS’s distribution per stapled security (DPS) by 1.5%. 
• Mapletree Industrial Trust (MINT) is proposing to acquire a multi-storey mixed-use facility in Tokyo, Japan for JPY14.5 billion ($129.8 million). The proposed acquisition is expected to be accretive to MINT’s distribution per unit (DPU).
• Manulife US REIT divested a property in California for US$117m less US$6.2m for outstanding tenant improvement allowances, free rent and lease commissions. The proceeds will pay off all loans due in 2025. Aggregate leverage will improve to 54.2% and interest cost to 4.16%.
• Elite UK REIT divested a vacant property in Dundee for £1.3m, 41.7% above valuation. It also submitted a planning application for a site in Blackpool for data centre development.
• NIO delivered 21,181 vehicles in Sep, 35.4% higher year on year. For 3Q24, it delivered a quarterly record of 61,855 vehicles, up 11.6% year on year and 7.8% over 2Q24. 

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The big important story

Where to park your cash for higher yield?

We share the best ways to earn a yield on your cash through fixed deposits, Singapore T-bills, SSBs and money market funds.

🤓 What we're looking out for next week

• Thursday, 10 Oct: 6-month Singapore T-bill auction, US Consumer Price Index (CPI) Data 
• Friday, 11 Oct: JPMorgan earnings

Check out the full list of Singapore stocks, REITs and ETFs with upcoming dividend payments with our dividend calendar.

Source: SGX, Bloomberg, Refinitiv

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