Tactical Opportunities in the Oil & Gas Sector


Thoughts on Week Ahead:
Week 3 Sept 2023

Tactical Opportunities in the Oil & Gas Sector
US crude oil inventories are steadily decreasing as we move into mid-July, leading to an uptick in spot crude oil prices due to heightened market demand. Consequently, we anticipate a potential influx of funds into Oil & Gas stocks as investors position themselves to capitalize on improved earnings margins within these companies.

This week, China has continued its efforts to bolster its economy by implementing more lenient mortgage policies for buyers in first-tier cities. This ongoing economic support is expected to bolster investor confidence, which bodes well for the Greater China equities market.

Regarding the S&P 500 index, we maintain a cautiously optimistic outlook. We anticipate relatively subdued trading activity this week as market participants closely monitor the release of the US FED beige book, which will provide insights into the FOMC's rate policy outlook. Additionally, with the upcoming Labor Day holiday shortening the trading week, we expect limited market movements. Immediate support levels stand at 4,458, with resistance at 4,600.

Headlines for Week Ahead:
US Holiday (Mon)
US ISM Report, US FED Beige Book
China Caixin PMI (Aug), CPI (Aug)
SG Retail Sales (Jul)

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