Week Ahead: DeepSeek's Impact on Capex, US Tariffs, and Tech Earnings in Focus

Week Ahead: 3 Feb 2025

DeepSeek Impact: DeepSeek disrupted the AI scene with Nvidia Corp (NVDA), market leader in the current AI rally, breaking its key technical levels. We remain cautious on Nvidia moving forward and have outlined both bullish and bearish scenarios for the stock.

US Tariff Impact: US tariffs have begun, leading to a stronger dollar—a development the markets dislike. As a result, ETFs tracking both developed and emerging markets fell between 0.50% and 1.12%.

Precious Metals: Among the headlines, precious metals such as gold emerged as winners for the week, gaining around +1.00% and trading at an all-time high, near US$2,800/oz.

Medium Term:

S&P 500 (SPX): The S&P 500 is holding steady, consolidating this week as it encounters resistance again around 6,100. Our outlook remains neutral for now. The key level to watch is the 5,780-5,832 support zone. As long as the index stays above this, further consolidation and a potential move upwards are possible.

Big Tech earnings and any developments regarding Trump's policies could be catalysts for a directional shift in the market. We'll be closely monitoring these events for clearer signals.

Straits Times Index (STI): The STI's move above its previous trading range is a potentially bullish development. Sustained support above 3,765, would increase the probability of trading towards the 4,000 level.

Hang Seng Index (HSI): The China A50 Index (grey line) is still trending upwards. The Hang Seng Index (candlestick) is holding above its 19,000 support zone. The reopening of the Hong Kong Exchange (HKEX) this week could provide directional cues for the Hong Kong market.

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: Amazon, Alphabet, Palantir Tech, Merck, PepsiCo, AMD, Pfizer, Walt Disney, Qualcomm and Uber.

- SG Corp Earnings: SG REITs, CICT, Keppel, SGX,

- US Jobs Report, ISM surveys

- China/HK markets reopen, Econ reports,

- SG PMI Survey, Retail Sales

Disclaimers apply

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...

Week Ahead: US Indices Momemtum in Question

Week Ahead: 10 March 2025 Key event this week was U.S. indices technically closed below the key 30-week (or 150-day) moving average . For the upward trend to continue, the indices need to reclaim levels above the moving averages. Remaining below the 30-week (or 150-day) moving average could indicate that the upward trend has reversed downward. However, in the short term, we expect a rebound as the indices trade near their respective support levels. Medium Term: S&P 500 (SPX): The S&P 500 broke below its key upward trendline, which had been established since October 2023. In the longer term, we expect the index to trade sideways or move in a downward direction. In the short term, we anticipate the S&P 500 will find support at the 5,700 level and could rebound to test the 5,860 and then the 5,966 resistance zones. Straits Times Index (STI): The technical trend remains bullish. We maintain a constructive outlook while staying vigilant for any sig...

Palantir Technologies Inc PLTR: Technical Rebound at Sight After US Broad Market Stabilises

Palantir Technologies Inc. (PLTR) USD86.24 Palantir (PLTR) posted a bullish reversal, closing above the 13-day SMA (83.56) with significant volume expansion. This signals potential momentum strength in the near term. First key resistance zone between the 50% and 61.8% Fibonacci retracement levels (USD 99.85 – 105.79), which could present selling pressure. Disclaimers apply

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