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...

Week Ahead: US Indices Momemtum in Question

    Week Ahead: 10 March 2025 Key event this week was  U.S. indices technically closed below the key 30-week (or 150-day) moving average . For the upward trend to continue, the indices need to reclaim levels above the moving averages. Remaining below the 30-week (or 150-day) moving average could indicate that the upward trend has reversed downward. However, in the short term, we expect a rebound as the indices trade near their respective support levels. Medium Term: S&P 500 (SPX):  The S&P 500 broke below its key upward trendline, which had been established since October 2023. In the longer term, we expect the index to trade sideways or move in a downward direction. In the short term, we anticipate the S&P 500 will find support at the 5,700 level and could rebound to test the 5,860 and then the 5,966 resistance zones. Straits Times Index (STI):  The technical trend remains bullish. We maintain a constructive outlook while staying vigilant for any sig...

DBS Group Holdings (D05) and Straits Times Index (STI): Technical Change of Momentum

         DBS Group Holdings (D05) and Straits Times Index (STI):  Technical  Change of Momentum  Recent price developments in DBS Group Holdings (SGX: D05) and the Straits Times Index (STI) signal a critical inflection point. Both instruments have breached established ascending trendlines, suggesting a potential reassessment in investor sentiment and market trajectory.  DBS Group Holdings (D05) Price Dynamics:  DBS has decisively broken below its ascending trendline, closing at SGD 44.23, registering a 3.53% decline. The price action underscores weakening upward momentum and raises the probability of an extended correction phase. Key Technical Levels: 38.2% Fibonacci retracement: SGD 41.45 50% Fibonacci retracement: SGD 39.78 61.8% Fibonacci retracement: SGD 38.12 Full retracement: SGD 32.72 Outlook:  The breach beneath the trendline suggests an erosion of bullish conviction. Immediate attention should be on the 38.2% retracement le...