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Week Ahead: DeepSeek's Impact on Capex, US Tariffs, and Tech Earnings in Focus






Week Ahead: 3 Feb 2025

DeepSeek Impact: DeepSeek disrupted the AI scene with Nvidia Corp (NVDA), market leader in the current AI rally, breaking its key technical levels. We remain cautious on Nvidia moving forward and have outlined both bullish and bearish scenarios for the stock.

US Tariff Impact: US tariffs have begun, leading to a stronger dollar—a development the markets dislike. As a result, ETFs tracking both developed and emerging markets fell between 0.50% and 1.12%.

Precious Metals: Among the headlines, precious metals such as gold emerged as winners for the week, gaining around +1.00% and trading at an all-time high, near US$2,800/oz.

Medium Term:
S&P 500 (SPX): The S&P 500 is holding steady, consolidating this week as it encounters resistance again around 6,100.  Our outlook remains neutral for now.  The key level to watch is the 5,780-5,832 support zone.  As long as the index stays above this, further consolidation and a potential move upwards are possible.  

Big Tech earnings and any developments regarding Trump's policies could be catalysts for a directional shift in the market.  We'll be closely monitoring these events for clearer signals.

Straits Times Index (STI): The STI's move above its previous trading range is a potentially bullish development. Sustained support above 3,765, would increase the probability of trading towards the 4,000 level.

Hang Seng Index (HSI): The China A50 Index (grey line) is still trending upwards.  The Hang Seng Index (candlestick) is holding above its 19,000 support zone. The reopening of the Hong Kong Exchange (HKEX) this week could provide directional cues for the Hong Kong market.

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: Amazon, Alphabet, Palantir Tech, Merck, PepsiCo, AMD, Pfizer, Walt Disney, Qualcomm and Uber.
- SG Corp Earnings: SG REITs, CICT, Keppel, SGX, 
- US Jobs Report, ISM surveys
- China/HK markets reopen, Econ reports, 
- SG PMI Survey, Retail Sales

Disclaimers apply


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