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Weekly Update: Markets Focus on "Liberation Quarter" Corporate Earnings

 


Week Ahead: 14 July 2025

None of my clients were allocated units in the NTT DC REIT IPO on SGX, except for one who applied for 1,000 units. How about you? NTT DC REIT is scheduled to debut on 14 July at 2:00 PM, and strong demand suggests we may see fireworks on the first day of trading.

Over the next two weeks, market direction is likely to be driven by corporate earnings guidance and how companies are adjusting post the “Liberation Quarter.” In particular, AI leaders such as Nvidia Corp and TSMC will remain in the spotlight as they continue to lead the current bull run.


Short Term:

S&P 500 (SPX):
The S&P 500 has approached and is consolidating near our previously identified 6,300 resistance zone, which corresponds to the 2.618x Fibonacci extension.

A sustained breakout above this level, supported by expanding demand, would open the path toward our next upside objective at 6,600. On the downside, initial support is expected at 6,150.

Momentum-driven traders may consider deploying incremental long positions on confirmation of strength above 6,300, with tight stops placed just below. Conversely, a failure to break higher could result in a pullback toward initial support at 6,150, offering a potential re-entry zone for medium-term investors.

Hang Seng Index (HSI):
The Hang Seng Index (HSI) retested the key resistance level at 24,500 last week but failed to achieve a sustained breakout. Given the lack of upward follow-through, our near-term bias shifts toward further consolidation. Immediate support is located at 23,600.

However, should a strong demand impulse emerge and the index break decisively above 24,500, the next resistance level is projected at 26,800.

Maintain a neutral stance in the near term, with a focus on the 23,600 support level as a potential area for tactical positioning.

Straits Times Index (STI):
The Straits Times Index (STI) has reached our anticipated target level of 4,100 and is expected to consolidate within the current range in the near term.

Should upward momentum persist and the index achieve a decisive break above the 4,100 resistance, the next resistance level is projected at 4,260. Immediate support is identified at the 4,000 level.

Position traders or Investors may look for confirmation of a breakout above 4,100 before adding to long positions, targeting the next upside resistance at 4,260.


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: JPMorgan, Bank of America, and Goldman Sachs, TSMC, J&J, ASML, Netflix

US: Jun CPI, PPI, Retail sales, IP, Mfg data, US Fed Beige Book, Fed speakers
China: 2Q GDP, Jun IP, retail sales, trade, jobless rate, property data, Intl Supply Chain Expo in Beijing.
Singapore: 2Q adv GDP, Jun NODX

Disclaimers apply


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