Yesterday we saw Dow continues its movement up when it released a ADP employment report that is above expectations. It rises by 40 points. STI also rises yesterday with the hype of breaking new high by the DOW and soared 40 points, marking the best one day gain this year.
ADP employment report is a private report on the jobs status of America, seen as a precursor to the non farm payroll. Of course, it has an accuracy of being right 60% of the time in predicting the results of non farm payroll. For now, the opinion is tilted to a better than expected results for Friday Non farm. Optimistic news and that is the reason of Dow increase last night.
But having said that, taking a look at Singapore market, I did not see flourishness in a lot of stocks. It seems still dull to me as the stocks did not recover to its peak. Some barely turned. Some dropped back today. Hence, I would still suggest not to place your bets first. I sense some sluggishness in local market.
Will Non farm payroll on Friday revive the local stocks? not sure, we just have to wait and see.