Skip to main content

Weekly Market Outlook: US Federal Reserve's rate cut Benefiting Asian Equities and Bonds

 



Week Ahead, 23 Sept 2024

Asian and Emerging Markets equities and bonds are set to benefit from the Federal Reserve's rate cut, as borrowing costs are expected to decrease, while stocks are further supported by stronger currencies.

The U.S. S&P 500 Index continues its upward trend. As long as the index holds above the 5,650 support level, the next technical target lies in the 5,900-6,000 zone.

The NASDAQ 100 ETF has broken out of its downtrend line, signalling a potential retest of its previous high in the 500 area, with immediate support at 470.

The Straits Times Index (STI) has reached its 3,600 technical target and may consolidate this week before moving towards the 3,700 area. Immediate support for the STI stands at 3,500.

Singapore real estate investment trusts (REITs) are expected to go thru short-term pullback or consolidation following their recent rally.

No single stock setups have been identified for the week ahead.

Headlines for the week:
- US Aug PCE, PMI Surveys
- SG Aug CPI, Ind Prod

Disclaimers apply

Most Popular

Historical Stock Market Performance During the Year of the Snake (2025)

Historical Stock Market Performance During the Year of the Snake (2025) Introduction: The Chinese zodiac plays a fascinating role in shaping cultural beliefs and behaviors. Among the 12 zodiac animals, the Year of the Snake is often associated with intelligence, caution, and financial shrewdness. We take a simply review of three key indices, S&P 500, Hang Seng Index (HSI), and Straits Times Index (STI),  annual performance  during the Year of the Snake. Key Observations from the Data: S&P 500 Performance: Average annual return: 0.47% . Win/Loss ratio: 37.5% (3 years of gains vs. 5 years of losses). Notable years: 1989 marked a robust gain of 27.25% , while 1941 saw a steep decline of -20.22% , coinciding with global tensions during World War II. HSI Performance: Average annual return: -5.36% . Win/Loss ratio: 66.67% (2 years of gains vs. 1 year of losses). Notable years: The index's strongest year was 1989, with a return of 5.55% , while 2001 suffered a severe decli...
Read more

Week Ahead: Trump Trade and the Resilient US Economy

  Week Ahead, 9 Dec 2024 Macro News: U.S. markets continued their record-breaking streak this week following a reassuring speech by U.S. Federal Reserve Chair Jerome Powell, highlighting Fed's cautious yet comfortable stance on rate cuts. Beneficiaries of the "Trump Trade" also saw significant gains, with Tesla Inc. rising by +12.77% and Bitcoin up +2.24% for the week. The U.S. technology sector, represented by the QQQ ETF, also performed strongly, boosted by Friday's jobs report, which indicated a resilient economy. Meanwhile, the Hang Seng Index (2800 ETF) experienced a technical turnaround, gaining +2.28% this week. The rally was fuelled by speculation that Beijing might introduce additional lending and mortgage rate cuts to stimulate the economy. Medium Term: • S&P 500 (SPX): Index remains above the 6,000 level and could trend towards the 6,180 zone. • Straits Times Index (STI): STI reversed near our 3,860 resistance zone. We are neutral and is looking out for...
Read more

Yangzijiang Shipbuilding Ltd (BS6) – Bullish Momentum Boosting Near-Term Outlook

  Yangzijiang Shipbuilding (YZJ) has been exhibiting favourable technical and fundamental observations. 1. Technicals The chart shows a price  breakout above S$2.75 , which had previously served as a strong resistance level. This breakout occurred with increasing volume, indicating strong buying momentum. Price Targets: - 1st Target: S$3.0 - 2nd Target: S$3.20 - Trailing Stop Loss Box (7): S$2.36 (Current) These targets are in line with Fibo extension, 1.618% (S$3.02) and 2.0 (S$3.19). Support and Stop-Loss Investors should keep an eye on the trailing stop at S$2.36 , derived from current Box (7) value. Relative Strength While the stock is outperforming the STI index , the relative strength index (RSI) is not yet overbought, signaling room for further upward movement. 2. Fundementals YZJ's robust strong order and  underlying structural trend in s hifting to clean Energy Vessels  container and LNG vessels, continues to support company's order book , which extends i...
Read more