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 more directional cue this week.

• Hang Seng Index (HSI): Index rebounded at 19,000 support level with potential of retesting 20,500 area.

Long Term:

• S&P 500 (SPX) trend remains upward

• Hang Seng Index (HSI) trend remains upward

• Straits Times Index (STI) trend neutral to upward trend.

Headlines Next Week:

- US Nov CPI, PPI Reports

- China CEWC, Nov CPI, PPI Reports

- SG Nov NODX, Ind Prod

Disclaimers apply

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