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Summary of content for the week of Feb 21:
1. Week 8 major indexes performance;
2. Week 8 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;
U.S
U.S stocks closed lower, recorded first weekly losses in three weeks, as worries grew about the impact of the COVID-19 outbreak on the global economy. Number of cases infected in China seems like much contained but cases out side of China in countries such as S. Korea and Japan dampened sentiment. Latest business activity reports showed manufacturing slowed and the key services sector fell into contraction for the first time in four years.10-yr Treasury yield hit new 5-month low, an indication of money flight to safe heaven. SPX technical level to watch is 20ma 3323 then 50ma 3274 levels.
Stocks fell began in Tuesday after Apple revealed that it would miss sales target due to supply chain in China disrupted as factories delayed in normalizing their operation and demand shortfalls due to the close of its outlets.
Technology(XLK) was among the worst performs in SPX sectors, Communications services(XLC) also weak. Refer to below SPX sector weekly performance table.
China/HK
China SSE index rallied to a one-month high this week, encouraged by a rate cut and promise of more support to businesses from the central bank, falling new virus cases. But HSI closed down first week in three weeks. Technically it hit its major technical downtrend line and retreated from the resistance level. Refer to below weekly charts.
Singapore
STI closed 1st week in three weeks as well but the index traded within its four weeks price range. Expected mute in tradings for the time being as market is observing more evidence that the COVID-19 outbreak's impact on local business and economy.
Summary of content for the week of Feb 14:
1. Week 7 major indexes performance;
2. Week 7 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;
U.S
U.S stocks posted 2nd week up in a row, closed record new high. While coronavirus remained attracting global markets attention. Most opinions indicate economic impact is meaningful but temporary. Containment of the COVID-19 coronavirus seem to grow more confident, also U.S consumer sentiment hit two-year high helping pushed market higher.
All 11 major SPX sectors closed positive for the week. Real Estate(XLRE) outperformed with 4.86% gain and Materials(XLB) lagged with 0.7% gain. refer to below weekly sectors performance table.
China/HK
Economic growth in China will see a much more negative impact from COVID-19 but will be temporary as well. Both China domestic funds and foreign funds seen continued flowing into A shares. China SSE and Hong Kong HSI indexes seen 2nd week rebound. Investors should be more encouraging once containment of virus spreading confirmed.
Singapore
STI rebounded 2nd week and closed near its previous week high, along with other regional markets. However, there are noticeable increasing number of cases on the local transmission of COVID-19 virus, which further spreading to local community. There could be more severe implication on local economy. Keep monitoring.
Summary of content for the week of Feb 7:
1. Week 6 major indexes performance;
2. Week 6 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;
U.S
U.S stocks closed at biggest weekly gain in six months, turned around drastically higher this week as it had biggest weekly loss in three months previous week. What a volatile market. Upbeat U.S economic data including stronger-than-expected Jan labor report, rebounded manufacturing PMI and the focusing of Walls Street- China's economic measures to offset the impact of the Coronavirus. Furthermore, China also announced to cut tarriffs on U$75 of U.S goods as part of phase-one trade agreement in the week, to be effective on Feb 14. Stocks shook off two-week slump and had a V shape rebound. Going forward, do expected market volatility increase.
Among SPX 11 major sectors, Technolgy(XLK) was the best performer, refer to below sector performance chart. Tesla(TSLA) is under spotlight as its price rocketed higher in first two days this week and came off down.
China/Hong Kong
Mainland China stocks opened this week after extended CNY holiday, dropped more than 9% on Monday as expected, and recovered sharply thereafter as China government injected RMB 1.2 trillion of liquidity into banking sector to support the economy and counter the impact of some of the short term financial stress. Foreign funds and domestic funds reported buying massively in a "bottom-fishing" manner. It has since recovered two thirds of Monday loss though SSE index closed still down 3.38% for the week. Technically there is a big gap between 2955-2877 area, most gaps will be closed in future.
HSI index also recovered and rebounded after hitting its major technical support around 26200 level.
Singapore
STI had gap-down on Monday following Asian peers but recovered almost 100% of its previous loss by Thursday, only down by short term profit-taking on Friday, gave back about one third of previous three-day gain. Bias to upside in coming week.
Summary of content for the week of Jan 31:
1. Week 5 major indexes performance;2. Week 5 US sector indexes performance;3. Major indexes weekly charts of support and resistance levels;
U.SU.S stocks closed with biggest weekly loss since Oct, dropped 2nd week, gave back all gain in Jan,SPX and DJI soldoff 2.53% and 2.12% this week, and Nasdaq(COMP) lost 1.76%. As the outbreak of coronavirus spooked investors globally, and still escalating. Bond rallied as funds flow to safe heaven. It's a busy week of corporate earnings and Fed left interest rate unchanged.
WHO declared the coronavirus a global health emergenc but does not recommend restriction on China's international flow of trade and travel. The economic impact is difficult to predict but the it is believed that the reaction will be short term and outbreak will be solved within months. As example from SARS in 2003, SPX declined 3.4% between the first case of SARS and last case over a six-month period according to Bloomberg data.
Among the 11 SPX major sectors, defensive sector Utilities(XLU) is the only sector recorded weekly positive close and Energy(XLE) continued to be selloff, losing 11% YTD. Refer to below weekly sector performance table.
China/HK
China stock markets were shut during for CNY holiday and extended to whole week as part of their efforts to contain the spread of wuhan coronavirus. China market will open on coming Monday. HK stocks lost 5.9% this week, resumed trading on Wed after CNY holiday. Cyclical sectors underperformed, hotels, airlines, travel, restaurant led the selling down. and some Pharmacy stocks rallied. It's expected HSI index will drop further on Monday following China markets but downside should be limited. The immediate technical support to watch is 26000 for HSI.
Singapore
STI's immediate technical support to watch is 3144 and then 3100 level. Refer to weekly charts below.
