Weekly Market Update

Thoughts on the Week Ahead:

Week of May 27, 2024

Taking a lift down from the HDB flat, enjoy a brisk walk to Sixth Avenue for Sunday breakfast. This scenario, unimaginable many candlesticks ago, is soon becoming a reality in Singapore.

This week, the spotlight is on the US PCE inflation report, which has the potential to move the market. The market expects a 0.3% uptick, a notable deceleration from March. The US earnings season is nearly over, with attention remaining on results from Costco and Dell.

In China, May's official PMI figures are anticipated to reflect a modest expansion in manufacturing, shedding light on the potential allocation of over CNY 1 trillion in stimulus from long-dated bonds.

Market technicals for the S&P 500 continue to suggest an upward trend, but we are very cautious about the market as the earnings season ends and investors re-evaluate current valuations. Our target remains at 5,400, with immediate support at 5,260.

Our trading strategy for the week ahead is to go long but selective. Note that the US market is closed on Monday.

Headlines for the week:

- US Corp Earnings (COST, DELL)

- SG Corp Earnings (SATS, Valuetronics, )

- US PCE, FED officials speak. Closed on Monday.

- China PMI

- SG final GDP 1Q24, Apr CPI, Ind Prod, Short trading week

Disclaimers apply

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