While it is red for most of the emerging and Asia markets, we saw consecutive rally in the US equities. What is happening? It seems that majority of the fund managers are taking Egypt crisis as an excuse and pulling back money into US market. Take at look at the US Dollar index. Since last week, it is rising higher and towards 79. This means people are now looking to buy US dollars and selling other majors. Indirectly, it is telling us that people are now channeling money back to US, which has always enjoy the safe haven status as world reserve currency. Is this the beginning of the unwinding of risky asset?
On the local front, STI has been a weak performer today as compared to regional indices like Hongkong, Korea and China. Personally I've bearish basis for STI in mid term.
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