REITs Sector Poised for Upside Amid Falling Yields The REITs sector appears to be entering a recovery phase, supported by a favorable shift in the interest rate environment. As illustrated in the chart above, the NikkoAM-StraitsTrading Asia ex Japan REIT ETF (CFA) has started to rebound in tandem with the inverted Singapore 2-Year Government Bond yield, which has been trending higher—a proxy for lower actual yields. This inverse relationship is a well-established dynamic in yield-sensitive asset classes such as REITs. As bond yields decline, the relative attractiveness of REITs improves due to their stable income profile and yield spread advantage over risk-free assets. Lower interest rates also ease refinancing concerns and support property valuations, contributing to improved investor sentiment across the sector. From a technical perspective, the ETF appears to have found a base and is showing early signs of recovery , with the recent price action confirming a short-term bottom. I...
Week Ahead:23 June 2025 US markets momentum persists, closing at record high. Upcoming earnings season, AI spending, trade talks and Middle East situation are expected to be drivers for the next few weeks of trading. Short Term: S&P 500 (SPX): With the index breaking above its February all-time high and a measured technical target at 6,300 (2.618% Fibonacci extension), bullish momentum is intact. Traders could look for pullbacks towards 6,050 as a potential entry area with tight risk controls below gap support. Momentum continuation setups can be monitored on lower timeframes. While investors can consider increasing exposure on dips, particularly in sectors leading the breakout (e.g., tech, industrials). Hang Seng Index (HSI): HSI’s strong weekly close near resistance at 24,200 suggests growing bullish conviction. A break above this could trigger a move towards 24,780 and 26,000. Traders can consider short-term trades targeting 24,780. Reentries can be considered ...