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Week Ahead: Markets Under Pressure Amid Rising Middle East Tensions and Looming End of U.S. Tariff Truce

 



Week Ahead:23 June 2025

Uncertainties in the markets continue to mount, with two key events in focus: escalating Middle East tensions and the approaching end of Trump’s 90-day trade truce. Positive developments in either area could lift market sentiment, while adverse outcomes may trigger renewed volatility.

At current juncture one of the measures we could rely on are various asset classes momentum to guide both investor and traders on long-term positioning and short-term tactical decisions.

Short Term: 
S&P 500 (SPX): The S&P 500 is expected to remain range-bound in the near term amid heightened Middle East tensions and the approaching end of the U.S. tariff truce. Key support levels to monitor are 5,900 and 5,780.

Traders should stay nimble and consider short-term opportunities within the 5,780–5,970 band. Investors may look to accumulate on dips.

Hang Seng Index (HSI): The Hang Seng Index (HSI) remains range-bound in the near term. From a technical perspective, we are monitoring for strong buy or sell signals to determine the likely breakout direction from the current 22,750–24,200 range.

Traders can wait for clear directional confirmation before positioning aggressively. Investors may maintain selective exposure to quality names.


Straits Times Index (STI): The Straits Times Index (STI) was unable to hold above the 3,900 support level, suggesting potential short-term weakness. The next key technical support is at 3,800. However, a sustained move back above 3,900 signal a resumption of the bullish trend.

Traders may look for bearish setups if the index fails to reclaim 3,900, targeting 3,800 as the next support. For investors, a move back above 3,900 could validate a bullish resumption.

Long Term:
S&P 500 (SPX) Upward Trend
Hang Seng Index (HSI) Upward Trend
Straits Times Index (STI) Uptrend Trend

Headlines Next Week:
US Corp Earnings: FedEx, Micron
US: 1Q GDP (final), May PCE, Personal Income
China: Jun Various PMI, May Ind Profits 
Singapore: May CPI, May Ind Prod

Disclaimers apply


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