Interestingly, in the comparative strength chart between the STI and the S&P 500 (SPX), the SPX was stronger than the STI till February 2022. Since then, the SPX has struggled to maintain its strength while the STI strengthened against the US market barometer. The comparative strength chart shows continued STI strength versus the SPX which could persist for another week.
This could be due to local banks strengthening, While their chart patterns are ambiguous, indicating that DBS Group Holdings and United Overseas Bank are likely to trade within a range, the full impact of rising interest rates have not been built into their net interest income levels, and there could be a re-rating and more upside on this front.
Yields on 10-year US treasuries continued to rise during the past five trading sessions, between Sept 2 - Sept 8. They are at their highest level since mid-June when yields touched 3.48%. Based on rising moving averages, strong quarterly momentum and rising directional movement indicators, yields could gain further before they head for a retreat.
