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Week Ahead: Higher for Longer, US Equities Struggles to Hold On Longer




Week Ahead: 13 Jan, 2025

·  The hot employment report on Friday suggests that the US Federal Reserve is expected to maintain the target rate at 4.25%-4.50% for an extended period. US equities are showing further technical weaknesses following Friday's report.

·  The Chief Economist from Goldman Sachs mentioned that US President-elect Donald Trump will likely seek an average tariff of 20% on most Chinese goods, with rates as high as 60% on certain categories.

·  On a lighter note, frequent visitors to Malaysia may be interested to know that the popular Oriental Kopi (0338) will be listed on the Malaysia Exchange (Ace Market) at M$0.44.

·   Nil trading set up identified for the week ahead.

 

Medium Term:

·   S&P 500 (SPX): The S&P 500 is experiencing selling pressure. A key level to monitor is 5,780, along with the upward trendline. If the index remains above these levels, it will continue its bullish uptrend. However, trading below these levels could indicate a potential technical trend reversal.

·   Straits Times Index (STI): The STI index faced rejection at 3,850 and has fallen back below the 3,700–3,850 range. We will closely monitor the demand and supply dynamics at this point to determine whether bullish sentiment can reaccumulate to drive the index higher or if it will turn lower from here.

·   Hang Seng Index (HSI): The China A50 Index (grey line) remains in an upward trend. However, the Hang Seng Index (candlestick) traded lower for the week. Without a reversal in the current supply situation, the index could fall to 18,000, representing the 76.8% retracement level.


Long Term:

·       S&P 500 (SPX) trend remains upward

·       Hang Seng Index (HSI) trend remains upward

·       Straits Times Index (STI) trend neutral to upward trend.


Headlines Next Week:
- US Corp Earnings: JPM, WFC, GS, BLK, C, BAC, MS

- US CPI Report, Retail Sales

- China 4Q24 GDP, Econ data

- SG NODX Report

Disclaimers apply

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