Week 22 April 2024 Be mindful of potential market volatility next week as several US mega-cap companies are announcing earnings. Risk-off sentiment continues to weigh on US stocks as hopes for interest rate cuts fade. However, it's worth noting that US financials remained resilient during the sell-off due as the banks benefit from high-interest margins. Interestingly, US listed Chinese tech companies were largely unaffected during Friday’s tech sell-off, which could indicate supply exhaustion and potential trade or allocation opportunities. Heads up for the Singapore market next week as market will due to soften in view of DBS going ex-bonus on Monday. This week, constrained retaliation actions by countries in the Middle East provide some level of relieve for investors and global citizens. Nil trade set-up for the week ahead but will update when we identify any. Headlines for the week: - US Corp Earnings (Alphabet, Amazon, Microsoft, Meta, Visa, Tesla, GE, UPS, Lockheed Martin, Q
Thoughts on Week Ahead: Week 15 April 2024 As we embark on the week ahead, it's important to acknowledge the evolving landscape of market dynamics. Quoting from Netflix's '3 Body Problem,' we find ourselves in what could be termed a 'Chaotic era.' The S&P 500 has entered a phase of increased volatility, signaling a potential sideways or downward trend in the short to medium term. Initial technical support rests at the 5,050 level, marking a retracement of 23.60%. This shift in trend is likely influenced by stronger-than-anticipated inflation data and job reports, prompting the US Federal Reserve to prolong its 'higher for longer' rate policy. While bank earnings have failed to meet market expectations thus far, the onus now falls on broader market earnings to sustain current optimism. Failure to do so could result in investor sell-offs. China A50 Index failed to break above trend resistance, cautious o n tactical trades for Greater China. Gold e