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Sunday, October 11, 2020

Hoping For Another Round of Fiscal Stimulus

Summary of content for the week of  Oct 9:

1. Week 41 major indexes performance;
2. Week 41 US sector indexes performance;

3.Major indexes weekly charts of support and resistance levels;

U.S
The SPX index had its best weekly gain in three-month, as investors seems to grow more optimistic about about a new round of fiscal stimulus, as well as vaccines for the coronavirus. Nasdaq(COMP) index had 4.56% gain in the week, was the best performer in my weekly indexes table below. YTD, COMP has been best performer with 29% return. In Asia, SSE index also recorded 7.3% return, but STI and HSI was the two laggers with -21.4% and -14.4% respectively. However, we see attractive value in STI and HSI, and believe they will catch up eventually.
Stimulus hopes boost sentiment despite conflicting signals. The off and on-again negotiations between Republican and the Dems over coronavirus relief package was in focus. 
Trump's seemingly rapid recovery following his Covid-19 diagnosis the previous week also seems boost sentiment. Hopes rise for a vaccine treatment soon. 
China/HK
China's stock markets rose on Friday after being closed from Oct 1-8 for the national Golden Week holiday. SSE index was in trading sideways within its three-month consolidation range. While HSI index rebounded for 2nd week, back above its 24,000 level. 
Singapore
STI had 2nd week up in a row. Recouped 2500 level which is a bullish sign. Immediate support to watch at 2520 and resistance at 2600.











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