Skip to main content

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. 

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

Week Ahead: Sustaining December’s Investor-Friendly Momentum

  Week Ahead, 2 Dec 2024   Macro News: Despite inflation remaining firm, the market continues to expect that the US Federal Reserve has a higher probability of cutting rates by 25 basis points at the upcoming FOMC meeting . December marks the final month of 2024 as we approach the year's end. Historically, the S&P 500 Index has been favorable to investors in December , with a 70.83% probability of a positive return and an average gain of 0.74%. We hope these trends persist in 2024. Currently, we have not identified any trade setups. We will provide updates if any opportunities arise. Medium Term: ·        S&P 500: The S&P 500 remains above the 6,000 level and could trend towards the 6,180 zone. ·        STI: The STI remains at the 3,700 resistance zone, with no major technical signals observed. If momentum sustains, the index could move towards the 3,860 level. ·     ...
Read more