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Weekly Market Outlook

 





Week Ahead: July 12, 2024

Investors are eagerly anticipating the next phase of growth under Tan Su Shan, a seasoned banker and former DBS intern, as she takes the helm at Singapore's largest bank by market capitalization.

Recent downgrades have been observed in the Singapore banking sector, with Citibank issuing a Sell rating on the three major Singapore banks, and UOB Kay Hian’s Jonathan lowering the sector's rating to Market Weight. This recent sell-off could present opportunities for averaging in, but investors should remain cautious or consider lowering their allocation, as impending U.S. rate cuts could compress the banks' net interest margins (NIM).

Market sentiment is currently at one of its lowest points, according to CNN's Fear & Greed Index. Our Long-Term Market Cycle Indicator remains bullish, suggesting that this level presents buying opportunities. However, caution is advised, as short-term momentum has not yet reversed to bullish, and a confirmed reversal is preferred.

Headlines for the week:
- US Corp Earnings (Home Depot, CSCO, Walmart, AMAT and DE)
- SG Corp Earnings (CICT, Wilmar, Genting SP, CaplandInvest, CDL, ST Eng)
- US Jul CPI, PPI, Retail Sales
- China CPI
- SG Jul NODX, final 2Q24 GDP

Disclaimers apply

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