ECONOMIC prospects are looming over the markets, as traders head out of April and into May.

The Singapore central bank's half-yearly review has reiterated that full-year gross domestic product (GDP) growth is expected to come in "slightly above the middle of the forecast range" - that is, 1.5 per cent to 3.5 per cent - while March factory output numbers showed a year-on-year rise of 5.9 per cent, slightly higher than predictions but lower than the revised February growth figure of 6.7 per cent.

Lukman Otunuga, research analyst at currency broker FXTM, wrote in a note: "The industrial production report is considered an indicator of future inflation, so a further sign that Singapore's manufacturing output is building momentum could stimulate expectations of rising inflation ...