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Weekly Market Update

 




Thoughts on the Week Ahead:
Week of 10 June 2024

Yes, at 39, Cristiano Ronaldo, will be joining Portugal's squad this coming weekend for the UEFA Euro Cup 2024. And who do you think will be crowned the Kings of Europe this year?

Most of our focus will be on the upcoming US FED FOMC announcement. The market largely expects no changes to the target rate. However, our eyeballs and ears will be on the FED Chairman’s speech, particularly if the committee continues to believe that inflation has plateaued, after a hotter-than-expected jobs report on Friday.

Markets are expected to be muted ahead of the announcement, and Chairman Powell’s speech could lead to directional moves for bonds and equities. Nvidia’s stock spilt on Monday will also be watched by many, if a “cheaper” Nvidia would attract more investors interest.

Technically, the S&P 500 is hovering below its key resistance area of 5,426, with our Fund Flow Index (FFI momentum Indicator), indicating uncertainties in the market. We will be extra cautious for the coming week.

Meanwhile, both the HSI and China A50 continue to retreat, searching for technical support, after a recent spree of dilutive convertible bonds issued by Chinese tech companies.

Nil trading set up observed for the week ahead, and we will update when we identify any.

Headlines for the week:
- US FOMC, CPI, PPI
- China CPI

Disclaimers apply

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