U.S stocks Posted Biggest Drop Since March

 Summary of content for the week of  Oct 30:

1. Week 44 major indexes performance;

2. Week 44 US sector indexes performance;

3. Oct monthly major indexes performance;

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

U.S

As we emphasized in our week 43 weekly wrap- Markets hate uncertainty in the short-run. True enough, this week's market selloff became immediate evidence, the S&P 500 index fell almost 6%. its worst weekly decline since March 20, and volatility jumped 40% from prior weeks' level. The sell-off was largely driven by news that daily coronavirus cases have hit new record highs in U.S and EU, and less certainty that we will see another round of fiscal stimulus this year. 

The trifecta of worries: Days left before the U.S election; Coronavirus progress and the lack of progress on another fiscal stimulus package, weighed on stocks. Notably, the technology sector, which has been a leader for much of this bear-market rally, down 6.4%, making it one of the worst indexes this week.

Some good news. Strong 3Q GDP growth at an annualized rate of 33.1%, beat estimate of around 31%; jobless claims came in lowers than forecast, consumer spending increased for 5th straight month in Sep. Positive data showing the recovery well on its way. 

Major indexes performance for the month of Oct. Only Hong Kong and Shanghai indexes recorded a positive return of 2.8% and 0.2% respectively in Oct. The worst performer is Dow Jones which declined 4.6%. Refer to the below monthly index performance table for details.

Major indexes performance for the week. All major indexes underwater this week. The least loss was  Shanghai Index with 1.63% down, and Dow Jones was the worst performer with 6.47% down. Refer to below weekly index performance table for details.

S&P sector index performance for the week. All 11 sectors were underwater, utility(XLU) held up best and tech(XLK) and consumer discretionary( XLC) fell the most.

Technically, all three U.S major indexes still on uptrend on their weekly charts.

China/HK

China stocks fell in sympathy with the downturn on wall street, with SSE down 1.6%. Politics in focus as China's CCP held 5th plenum from Oct 26-29. Ant Group geared up for its mega IPO dual listing in Shanghai and HK, aims to raise around USD 35 billion in IPO sales. Technically, SSE immediate support level at 3200 its 3-month sideway bottom. HSI index immediate support at 24000 level. 

Singapore

STI becomes the worst Asia stock indexes with 25% loss this year so far, after logging its five-day losing streak this week. Valuation are proving attractive for some as the STI trades at 13x forecast PE. In comparison, the MSCI Asia Pacific Index is trading at 16x PE. Technically, STI immediate support at 2380 level.