Index Weekly Wrap for the Week of Jun 5

Summary of content for the week of  Jun 5:

1. Week 23 major indexes performance;
2. Week 23 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;

U.S

U.S stocks rallied sharply this week, posting a 3rd-straight week of gains, turbocharged by a much better-than-expected May nonfarm payroll report on Friday, adding the already-high optimism surrounding the economic recovery from COVID-19 disruption. SPX closed the week up 5% and just 6% from Feb record high. The index has risen a marvelous 43% from March low so far. Refer to the major indexes weekly performance table below.

It shows the risk-off mode as the small-cap indexes were particularly strong. Moreover, over the last two weeks, with positive signs of a safe reopening of the global economy, the market rally has broadened from a handful of large tech companies with strong fundamentals that were largely immune to the COVID-19 lockdown, to other sectors tied most tightly to the economic conditions, such as financials, industrials and real estate. 

Within SPX 11 major sectors, Energy(XLE) shares outperformed, helped by news that OPEC and other oil major exporters were considering extending production reduction. Typically defensive Healthcare(XLV) sector lagged. Refer to the below sector's weekly performance.

China/HK

China SSE rose for the week, aided by a thaw in U.S-China relations. As U.S Trade Representative Robert Lighthizer said he felt "very good" about the progress of phase one agreement with China. 

HK business environment expected to be improved after stability returned as the implementation of HK security law by China's central government. HSBC(0005.HK) and Stanchart(2888.HK) rallied 13% and 19% respectively this week after defying UK to endorse Hongkong security law. HSI index added 8% to 3-mth high this week.

Singapore

STI index was the best performer index this week with 10% gain, boosted by reopening of economy after Jun 1. Local banks, real estate led the rebound. The weekly candlestick looks super bullish, the market is expected to continue rebound in the coming week(s) with the next target at 2890-2960 which is a technical gap resistance area.