Index Weekly Wrap for the Week of Jun 21

Summary of content for the week of Jun 21:

1. Week 25 major indexes performance;
2. Week 25 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels.

U.S
U.S stocks finished higher for the 3rd week in a row, with SPX and DJI closed at fresh new highs. As Fed signaled a possible rate cut 2H this year at its latest policy meeting on Thursday to support economic expansion. Crude oil rallied this week as rising tension in the Middle East, oil-related stocks got boosted. The Fed's dovish statement pushed treasury yields lower-- the 10-yr treasury yield hit lowest since late 2016, which is positive for the high dividend yield stocks such as REITs and rate sensitive sectors such as properties. 

Among the 11 SPX sectors, Energy(XLE) was the best performer this week with more than 4% gain, Consumer(XLP) and Materials(XLB) were the two laggers. 

Semiconductor stocks under selling pressure after the U.S added another five Chinese firms to its entity list ahead G20 meeting next week, targeting Chinese supercomputing companies this round. AMD tumbled more than 3%, while Xilinx(XLNX) and Nvidia(NVDA) fell 2.2% and 1.5% respectively. Trump-Xi meeting is in investors' focus in the coming week G20. 

China/HK

China Shanghai SSE and HSI added were the two most outperform indexes with 4.16% and 5% up this week, as traders bet that Trump-Xi at upcoming G20 meeting would lead to resume trade talks that broke down last month. 

Among the latest five Chinese firms which were put on U.S entity list, there is one listed in Shanghai stock exchange- Sugon(中科曙光 SH:603019) will be under selling pressure in the coming week(s). Note when another Chinese company ZTE( 中兴通讯HK:00763) was under U.S sanction in Apr 2018, it fell as much as 60% before rebounded. How will Sugon(中科曙光 SH:603019) react this time around? It closed at 40.55 CNY on Friday, a 60% drop would bring it down to around 16.2 CNY. Let’s see.

Singapore

STI recorded 3rd week up in a row, added more than 3% this week, that's remarkable. The weekly candlestick looks bullish, next technical target would be 3360 then 3400 levels going forward.