Skip to main content

Week Ahead: US Tariff Roller Coaster Set to Continue

 



Week Ahead: 2 June 2025
Deal or no deal—markets are bracing to ride the U.S. tariff roller coaster in the week ahead. On a brighter note, the U.S. April PCE report helped calm equities as inflation remained subdued despite renewed tariff concerns.

Meanwhile, Singapore banks declined 0.60%–1.00% on Friday, following a dip in April bank loan growth after March’s record high.


Medium Term: 
S&P 500 (SPX): The S&P 500 rebounded from the 5,780 support level and is currently trading within the 5,780–5,970 range. With the Forward Flow Indicator (FFI) in positive territory, the outlook remains tilted to the upside. However, if selling pressure resumes, the next key support level is at 5,540.

Hang Seng Index (HSI): Our China Market Long-Term Cycle Indicator continues to signal an upward trend for the HK/China markets. The Hang Seng Index (HSI) recovery remains intact. But our near-term outlook for the index is sideways, with potential support at the 22,750 level.

Alternatively, the uptrend could extend toward the 24,200 resistance level.

Trade the range with a neutral-to-bullish bias. Consider entries near 22,750 support and partial profit-taking near 24,200 resistance. Maintain stop-loss levels below 22,500.

Straits Times Index (STI): The Straits Times Index (STI) continues to test the 3,900 resistance for a second time. Our base case remains unchanged, anticipating a retest of the 4,000 zone. However, the index may consolidate within the 3,800–3,900 range this week if demand does not strengthen.

Trade within the 3,800–3,900 consolidation band. Short-term bullish bias above 3,900 could open upside momentum. Set stops below 3,780 on downside breaks.


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


Headlines Next Week:
US Earnings: Broadcom, CrowdStrike
US: May ISM mfg/services, JOLTS, NFP, unemployment, wages, factory orders, Fed Beige Book, Powell and Fed speeches
China/HK: Caixin mfg/services PMI, May FX reserves, Dragon Boat holiday.
Singapore: Shangri-La Dialogue, May PMI, S&P PMI, Apr retail sales

Disclaimers apply

Most Popular

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...
Read more

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...
Read more

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
Read more