Index Weekly Wrap for the Week of May 29

Summary of content for the week of  May 29:

1. Week 22 major indexes performance;
2. Week 22 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;
5. Major indexes performance for the month of May

U.S

U.S stocks rallied in the final hour of trading on Friday, performed a "V" shape recovery from its early loss in the day, as Trump's press conference appeared to be less ominous than what market expected. U.S three major indexes closed new high this week since rebounded from Mar low. Refer to the below index weekly and monthly performance tables. 

To highlight, SPX closed up 32% from Mar 23 low and down just 9.6% from Feb high. The sharp rebound mainly due to governments' unprecedented fiscal spending around the globe as well as aggressive monetary stimulus by major central banks. Stock markets are forward-looking despite current ugly economic data.

Technology-heavy Nasdaq Composite Index(#COMP) climbed within 3% of its Feb peak and it's the only index recorded positive YTD return with 5.77% up. Refer to below index weekly performance table. The more cyclical stocks gaining ground, the Financials( XLF) and Industrials(XLI) outperformed this week, while Energy(XLE) stocks lagged. Refer to below table for S&P 500 major sectors indexes weekly performance. 

China/HK

Investors in China and HK stocks were in cautious mood ahead of Trump's press conference on Friday. Many analysts agree that the potential withdrawal of U.S. trade privileges would have a negligible direct impact on HK as its main focus is on merchandise trade. Trade in the services category, which is far more important, is not affected.

MSCI announced a deal with the Hong Kong Exchange(HKEX), to sell 37 futures and options contracts based on its Asian and emerging market indexes. It will let the agreement license with Singapore Stock Exchange expire in Feb 2020 at the same time. This is positive news for HKEX. 

Singapore

STI edged up a little and closed within its technical support area 2500-2522 level. SGX was under selling pressure as it will stop trading MSCI index futures other than MSCI Singapore next year.