Week Ahead: China AI Rally and Delayed US Tariff Continues to Fuel Market Optimism

Week Ahead: 17 Feb 2025

Equities rebounded while Treasury yields fell after U.S. President Trump provided a generous lead time until April, allowing countries to negotiate trade tariffs.

China’s AI rally continued, with the Hang Seng Tech Index rising +7.30%. We will continue to ride the Hang Seng Tech momentum amid positive sentiment, next technical target is at 5,940 level. A key focus will be how companies incorporate AI into their products and its impact on their bottom line.

Medium Term:

S&P 500 (SPX): The S&P 500 broke above our 6,100 resistance level. Sustaining above this level could see the index trading towards the 6,380–6,400 zone. If the index falls back below 6,100, the next support levels are at 5,970 and 5,832.

Straits Times Index (STI): STI's technical outlook continues to be positive. Holding above the 3,850 level could see it trading toward the 4,000 level.

Hang Seng Index (HSI): The China A50 Index (grey line) is still trending upward. The Hang Seng Index (candlestick) has reached 22,500, our target and resistance level. The index could consolidate from here. If momentum persists, the next target and resistance level will be 25,000

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: McDonalds, Coca-Cola, Shopify, Gilead Science, Cisco Sys, Applied Mat

- SG Corp Earnings: UOB, Wilmar, SIA, Genting SP, Seatrium, SATS, Venture Corp, REITs

- US FOMC minutes, speeches by FED officials, S&P Global PMI

- China LPR Fixing

- SG NODX report, Budget announcement,

Disclaimers apply

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