Thoughts
on the Week Ahead:
Week of
July 22, 2024
TSMC’s revenue increased by 40% year-over-year, yet its stock price
declined by 3.55% for the day. Similarly, Netflix Inc. saw a 17% revenue
increase but experienced a 1.51% stock price drop.
Several factors could be contributing to the market’s
volatility. These include valuations in the tech sector, interest rate
expectations, and the potential impact of a Donald Trump re-election on taxes.
We anticipate similar market behaviour this week as other
tech giants release their earnings reports. There are currently no significant
technical patterns suggesting a market reversal. Therefore, we will monitor
sell-offs and wait for price stabilization before entering trades.
Despite a recovery in the China A50 index, Hong Kong
markets have not followed suit. Investor enthusiasm for Chinese markets remains
subdued. The upcoming earnings season may offer more clarity on the equity
market's direction.
The Singapore market has weakened, and the index is
currently mixed, reflecting global equity market trends and export challenges.
We maintain a cautious outlook for the week ahead. No
trading opportunities have been identified at this time and we will provide
updates as conditions change.
Headlines
for the week:
- US Corp Earnings (MSFT, GOOGL, TSLA, V, UPS, GM, IBM, F, SBUX, XOM)
- US Adv 2Q24 GDP, PCE report, PMI
- China LPR
fixing, PMI
- SG Jun
CPI, Ind Prod, MAS Policy
Disclaimers
apply