Week Ahead: DBS Group Results Announcement and US President Trump's Trade Tariffs Expected to Set the Tone for Markets This Week

Week Ahead: 10 Feb 2025

It’s Sell-Off Friday again for the third consecutive week, as investors saw the market close lower after U.S. President Trump announced plans to impose reciprocal tariffs on multiple countries next week. We are turning cautious on the S&P 500 after the index rejected the key 6,100 level for the fourth time this week. Alternatively, a breakout above this level would signal the continuation of the uptrend.

DBS Group’s earnings announcement on Monday before market open is expected to set the tone for the Singapore market. On the chart, the stock is trading within the $43.00 – $45.00 range. Our volume-momentum indicator (FFI) and relative strength indicator are showing positive readings. Thus, while we remain cautious, there is potential for the bank stock to trade higher following the results announcement.

The STI's technical outlook remains positive. Holding above the 3,850 level could see it trading toward 4,000. DBS Group’s results on Monday are expected to be the key catalyst for the index's directional movement.

Regarding the Chinese economy, Chinese New Year holiday spending has been encouraging. During this year’s festive break, 5.9% more trips were made, while spending increased 7% compared to the previous year. Meanwhile, sales of household appliances and communication equipment from retail enterprises surged by over 10% year-on-year.

Technically, both the Hang Seng Index (HSI) and CSI 300 continue to rebound from their respective support levels. The Hang Seng Index, given its current momentum, could trade toward 22,500, with immediate support at 20,000.

No tactical ideas spotted. We will provide an update if any emerge in the coming week.

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: DBS, REITs,

- US Jan CPI, Powell to deliver testimonies to congress

- China Jan CPI

Disclaimers apply

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