Week Ahead: Big Tech Earings Report, US FOMC Statement and US President Trump's Policies to Drive Markets

Week Ahead: January 27, 2025

• The comment by POTUS, “I’d rather not have to use tariffs on China,” provided a boost for both onshore and Hong Kong equities. The seasonal Chinese New Year rally anomaly could push China/HK indices higher in the upcoming shortened trading week.

• The Federal Reserve is expected to hold the federal funds rate steady at the 4.25%-4.5% range, pausing after three consecutive rate cuts in 2024. Markets will closely monitor the Fed's statement for any insights into its plans for 2025.

• Upcoming Big Tech earnings announcements have the potential to trigger significant directional move in the U.S. market.

Medium Term:

• S&P 500 (SPX): The S&P 500 is at our 6,100 resistance level. We remain cautiously bullish on the index as long as it stays above the 5,780-5,832 support zone. Big Tech Earnings & Fed Announcement: These events could drive a significant directional shift in the broader market.

• Straits Times Index (STI): The STI continues to trade within the 3,700-3,850 range. We are closely monitoring demand and supply dynamics to determine the STI's next directional move.

• Hang Seng Index (HSI): The China A50 Index (gray line) remains in an upward trend. Meanwhile, the Hang Seng Index (candlestick) is trading above its 19,000 support zone. As long as the index holds this level, we may see further upward or sideways trading, potentially setting the stage for future gains.

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 Corp Earnings: Microsoft, Meta, Tesla, Apple, Boeing, Starbucks, IBM, Visa, Mastercard, Blackstone, Caterpillar, UPS, Exxon Mobil, AbbVie and Chevron.

- US Corp Earnings: SG REITs

- US President Trump's policy announcements, FOMC Meeting, US 4Q24 GDP, PCE Report

- China MLF Rate, NBS PMI, Shortened trading week

- SG Unemployment Rate, Shortened trading week

Wishing all in our community a Happy Lunar New Year.

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