Week Ahead: 13 Jan, 2025
· The hot employment report on Friday suggests
that the US Federal Reserve is expected to maintain the target rate at
4.25%-4.50% for an extended period. US equities are showing further
technical weaknesses following Friday's report.
· The Chief Economist from Goldman Sachs mentioned
that US President-elect Donald Trump will likely seek an average tariff of
20% on most Chinese goods, with rates as high as 60% on certain categories.
· On a lighter note, frequent visitors to Malaysia
may be interested to know that the popular Oriental Kopi (0338) will be
listed on the Malaysia Exchange (Ace Market) at M$0.44.
· Nil trading set up identified for the week
ahead.
Medium Term:
· S&P 500 (SPX): The S&P 500 is experiencing
selling pressure. A key level to monitor is 5,780, along with the upward
trendline. If the index remains above these levels, it will continue its
bullish uptrend. However, trading below these levels could indicate a potential
technical trend reversal.
· Straits Times Index (STI): The STI index
faced rejection at 3,850 and has fallen back below the 3,700–3,850 range. We
will closely monitor the demand and supply dynamics at this point to
determine whether bullish sentiment can reaccumulate to drive the index higher
or if it will turn lower from here.
· Hang Seng Index (HSI): The China A50
Index (grey line) remains in an upward trend. However, the Hang Seng Index
(candlestick) traded lower for the week. Without a reversal in the current
supply situation, the index could fall to 18,000, representing the 76.8%
retracement level.
·
S&P 500 (SPX) trend remains upward
·
Hang Seng Index (HSI) trend remains
upward
·
Straits Times Index (STI) trend neutral
to upward trend.
- US CPI
Report, Retail Sales
- China 4Q24
GDP, Econ data
Disclaimers apply