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

BYD Co (1211:HK) Witnessing Signs of Strength

BYD Co (1211:HK) Witnessing Signs of Strength On Friday, we observed strong buying within a wide trading range, with the stock closing near the day’s high and good volume recorded. The previous two days of selling showed relatively low volume, indicating potential supply exhaustion. The stock price is currently at a key resistance level, constrained by a downward trendline and a horizontal support-turned-resistance line. A breakout above this level could signal a potential trend reversal , with an initial technical price target of HK$300.00. The stock is outperforming the broader market, indicating strong market demand, as evidenced by our proprietary Relative Strength Indicator (RSI), which is above zero. Additionally, the volume momentum indicator (FFI) is improving, further supporting the possibility of supply exhaustion. The Stochastic indicator also continues to trend higher, reinforcing a bullish outlook. A stop-loss price is set below HK$248.40 . If the price falls below this l...
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

DBS Group Holdings (D05) and Straits Times Index (STI): Technical Change of Momentum

         DBS Group Holdings (D05) and Straits Times Index (STI):  Technical  Change of Momentum  Recent price developments in DBS Group Holdings (SGX: D05) and the Straits Times Index (STI) signal a critical inflection point. Both instruments have breached established ascending trendlines, suggesting a potential reassessment in investor sentiment and market trajectory.  DBS Group Holdings (D05) Price Dynamics:  DBS has decisively broken below its ascending trendline, closing at SGD 44.23, registering a 3.53% decline. The price action underscores weakening upward momentum and raises the probability of an extended correction phase. Key Technical Levels: 38.2% Fibonacci retracement: SGD 41.45 50% Fibonacci retracement: SGD 39.78 61.8% Fibonacci retracement: SGD 38.12 Full retracement: SGD 32.72 Outlook:  The breach beneath the trendline suggests an erosion of bullish conviction. Immediate attention should be on the 38.2% retracement le...
Read more