Skip to main content

Weekly Market Outlook

 





Week Ahead: 

5 August 2024

Markets declined after the US unemployment rate climbed to 4.3%, intensifying recession concerns following a period of high-interest rate policies. Risk assets also suffered this week as a strengthening Yen unwound the popular carry trade strategy (borrowing Yen to invest in riskier assets).

The overall sentiment for equities deteriorated further as Buffett's Berkshire Hathaway reported a record-high cash position of $277 billion while simultaneously reducing its Apple Inc holdings by 50%.

The upcoming week is expected to be quiet in terms of economic data releases, with a few key corporate earnings reports scheduled. Technically, the S&P 500 is testing its 5,300 support level, and a short-term rebound is possible in this area.

While we do not have a specific trading setup at this time, we anticipate further inflows into bonds and high-quality REITs, as the interest rate environment eases.

Headlines for the week:
- US Corp Earnings (Caterpillar, Uber, Airbnb, Walt Disney, Eli Lilly, SoftBank, Venture Corp, SembCorp Ind, DBS, SGX)
- China CPI
- SG Holiday (Fri)

Disclaimers apply

Most Popular

Historical Stock Market Performance During the Year of the Snake (2025)

Historical Stock Market Performance During the Year of the Snake (2025) Introduction: The Chinese zodiac plays a fascinating role in shaping cultural beliefs and behaviors. Among the 12 zodiac animals, the Year of the Snake is often associated with intelligence, caution, and financial shrewdness. We take a simply review of three key indices, S&P 500, Hang Seng Index (HSI), and Straits Times Index (STI),  annual performance  during the Year of the Snake. Key Observations from the Data: S&P 500 Performance: Average annual return: 0.47% . Win/Loss ratio: 37.5% (3 years of gains vs. 5 years of losses). Notable years: 1989 marked a robust gain of 27.25% , while 1941 saw a steep decline of -20.22% , coinciding with global tensions during World War II. HSI Performance: Average annual return: -5.36% . Win/Loss ratio: 66.67% (2 years of gains vs. 1 year of losses). Notable years: The index's strongest year was 1989, with a return of 5.55% , while 2001 suffered a severe decli...
Read more

BYD Co (1211:HK) Witnessing Signs of Strength

BYD Co (1211:HK) Witnessing Signs of Strength On Friday, we observed strong buying within a wide trading range, with the stock closing near the day’s high and good volume recorded. The previous two days of selling showed relatively low volume, indicating potential supply exhaustion. The stock price is currently at a key resistance level, constrained by a downward trendline and a horizontal support-turned-resistance line. A breakout above this level could signal a potential trend reversal , with an initial technical price target of HK$300.00. The stock is outperforming the broader market, indicating strong market demand, as evidenced by our proprietary Relative Strength Indicator (RSI), which is above zero. Additionally, the volume momentum indicator (FFI) is improving, further supporting the possibility of supply exhaustion. The Stochastic indicator also continues to trend higher, reinforcing a bullish outlook. A stop-loss price is set below HK$248.40 . If the price falls below this l...
Read more

Week Ahead: Sustaining December’s Investor-Friendly Momentum

  Week Ahead, 2 Dec 2024   Macro News: Despite inflation remaining firm, the market continues to expect that the US Federal Reserve has a higher probability of cutting rates by 25 basis points at the upcoming FOMC meeting . December marks the final month of 2024 as we approach the year's end. Historically, the S&P 500 Index has been favorable to investors in December , with a 70.83% probability of a positive return and an average gain of 0.74%. We hope these trends persist in 2024. Currently, we have not identified any trade setups. We will provide updates if any opportunities arise. Medium Term: ·        S&P 500: The S&P 500 remains above the 6,000 level and could trend towards the 6,180 zone. ·        STI: The STI remains at the 3,700 resistance zone, with no major technical signals observed. If momentum sustains, the index could move towards the 3,860 level. ·     ...
Read more