Weekly Market Outlook

Week Ahead:

5 August 2024

Markets declined after the US unemployment rate climbed to 4.3%, intensifying recession concerns following a period of high-interest rate policies. Risk assets also suffered this week as a strengthening Yen unwound the popular carry trade strategy (borrowing Yen to invest in riskier assets).

The overall sentiment for equities deteriorated further as Buffett's Berkshire Hathaway reported a record-high cash position of $277 billion while simultaneously reducing its Apple Inc holdings by 50%.

The upcoming week is expected to be quiet in terms of economic data releases, with a few key corporate earnings reports scheduled. Technically, the S&P 500 is testing its 5,300 support level, and a short-term rebound is possible in this area.

While we do not have a specific trading setup at this time, we anticipate further inflows into bonds and high-quality REITs, as the interest rate environment eases.

Headlines for the week:
- US Corp Earnings (Caterpillar, Uber, Airbnb, Walt Disney, Eli Lilly, SoftBank, Venture Corp, SembCorp Ind, DBS, SGX)
- China CPI
- SG Holiday (Fri)

Disclaimers apply

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