Outlook for the week

• Last week, on the back of upbeat US economic data, the S&P 500 finished 4% higher before the 4 July holidays. Local bond market activity was relatively muted with no new issuances. This week, we may see some profit-taking with markets awaiting GDP data and our General Election later in the week on 10 July.

Key economic releases for the week

• Tuesday, 7 July 2020: Singapore GDP YoY (8 am)
• Wednesday, 8-9 July 2020: USMCA Summit (US, Canada, Mexico trade agreement)
• Thursday, 9 July 2020: US Initial Jobless Claims
• Friday, 10 July 2020: Singapore General Election (public holiday)

Past week: Key events

• 3 July 2020: Century Sunshine Group announced the default on its S$101.75mn 7% fixed rate bond (CENSUN 7% 3 July 2020 Corp SGD) as it failed to secure refinancing via a HKD300mn convertible bond issue. The bond was issued under the group’s S$300mn multi-currency medium-term note programme established in 2015.
• Key economic data released: In the US, June total nonfarm payroll beat estimates +4.8mn, unemployment beat estimates falling to 11.1% from 13.3% in May, the ISM Manufacturing Purchasing Managers’ Index (PMI) is back in expansion at 52.6%, and the consumer confidence index rose to 98.1 in June beating estimates of 91.5. In Singapore, June PMI rose 1.2 pts to 48 pts and May retail sales declined 52.1% with worst likely over.