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Showing posts from April, 2023

Again, market participants eagerly anticipate clues this week

  Market narrative largely remains the same as last week. Again, participants eagerly anticipate clues from corporate earnings to assess the impact of the prevailing high-interest environment on future outlooks. This week, major tech companies are set to report their earnings. Market observers will be closely watching Amazon (AMZN) as a gauge for consumer spending, while Alphabet (GOOGL) will provide insight into corporate marketing expenditures. Visa (V) is expected to offer a glimpse into the travel industry's outlook, and ExxonMobil (XOM) will reflect global economic activity. From a technical perspective, the S&P 500 continues to trade within a narrow range below the critical 4,180 resistance level. We have nil tactical ideas for week, closely monitoring for directional breakout. I have not discussed Straits Times Index (STI) for sometime, as index continues trading within 3,000 - 3,450 range since April 2022. Additionally, United Overseas Bank (UOB) , is poised to shed

One area to generate alpha: Chinese Banks

  Equities continue to trade within a confined range despite a week filled with announcements and reports. The upcoming earnings announcements could potentially trigger a directional market move. One area to explore for alpha generation could be Chinese banks . As the property market rebounds from regulatory crackdowns and the government's stimulus takes effect, banks are poised to benefit from a surge in new mortgage activity. Average new home prices in China declined by 0.8% YoY in March 2023, an improvement from the 1.2% drop in February. Since global markets rebounded in early November 22, three major Chinese banks have yielded an average return of approx +24%, outperforming the S&P 500's +11% gain, when measured in USD terms. And dividend yields average at 8%p.a.. Headlines for Week Ahead: Corporate Earnings (banks, Netflix, LVS)  China 1Q23 GDP SG Mar NODX

FOMC Minutes a catalyst for directional move in stock markets

  Week 10 Apr 2023 This week a crucial week for stock market, as S&P500 is on its 3rd attempt to break above the 4,180 resistance zone. Mid-week FOMC minutes could provide the catalyst for a direction move in the equities market. We are slightly more positive that markets could trade higher, but is watchful for changes in trading actions.  Headlines for Week Ahead: US FOMC Minutes US Banks Earnings US Inflation Rate China CPI China Trade Data SG MAS Policy Statement SG Adv 1Q23 GDP Report Disclaimers apply

Mapletree Logistics Trust (MLT) Marking Higher

  Mapletree Logistics Trust (MLT): Marking Higher As interest rates peak, REITs are poised to benefit, and MLT is well-positioned to capitalize on the recovering consumption in China and the country's growth policies. The trust is currently offering a dividend yield of approximately 4.7%. On the technical front, MLT has broken its downtrend line and appears to be consolidating, with potential to trade higher. Our first target is S$1.77, followed by S$2.10 if momentum and fundamentals continue to improve. The Relative Strength (RS) and Fund Flow Index (FFI) indicators are both reading above zero, which suggests increasing demand from investors. Stop loss below S$1.59 Disclaimers apply

Market momentum continues

  S&P 500 Technicals: Momentum continues to trade on the upward trend and is expecting to retest 4,180. Index could trade higher if 4,180 key resistance is broken. Softening PCE Data: The US Federal Reserve's preferred inflation indicator, the Personal Consumption Expenditures (PCE) data, has shown signs of softening. As a result, the market is increasingly anticipating that the Fed's rate hike cycle could peak relatively soon. This could present opportunities in interest-sensitive sectors such REITs. 1st Earnings Reporting since China Reopen: Stocks with exposure in China, HK and Asian markets, could potentially see a boost, given that this will be the first quarter following China's unexpected reopening earlier this year. Please be advised that global markets will be shortened for Good Friday. Headlines for Week Ahead: US Job Opening, US NFP, US ISM Mfg, China PMI, SG PMI, SG Retail Sales, Shortened Trading Week. Disclaimers apply