1. Week 5 major indexes performance;
2. Week 5 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;
U.S
U.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.
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