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: Trump Trade and the Resilient US Economy

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Yangzijiang Shipbuilding Ltd (BS6) – Bullish Momentum Boosting Near-Term Outlook

Yangzijiang Shipbuilding (YZJ) has been exhibiting favourable technical and fundamental observations. 1. Technicals The chart shows a price breakout above S$2.75 , which had previously served as a strong resistance level. This breakout occurred with increasing volume, indicating strong buying momentum. Price Targets: - 1st Target: S$3.0 - 2nd Target: S$3.20 - Trailing Stop Loss Box (7): S$2.36 (Current) These targets are in line with Fibo extension, 1.618% (S$3.02) and 2.0 (S$3.19). Support and Stop-Loss Investors should keep an eye on the trailing stop at S$2.36 , derived from current Box (7) value. Relative Strength While the stock is outperforming the STI index , the relative strength index (RSI) is not yet overbought, signaling room for further upward movement. 2. Fundementals YZJ's robust strong order and underlying structural trend in s hifting to clean Energy Vessels container and LNG vessels, continues to support company's order book , which extends i...

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