Rising Yield Continue to Dominate Sentiment

 Summary of content for the week of  Mar 5:

1. Week 9 major indexes performance;

2. Week 9 US sector indexes performance;

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

U.S

U.S three major indexes finished mixed for the week ended Mar 5, as long-term interest rates continued their ascent. U.S 10-year treasury yield closed at 1.55% on Friday, temporarily higher than SPX dividend yield of 1.52%. The rise in rate again weighted on growth stocks by increasing the discount on future earnings, while value stocks performed much better. 

As for SPX 11 sectors, Energy(XLE) outperformed as oil price hit highest to 66.28(WTI) in over a year, Financials(XLF) and Industrials(XLI) also are among top-performing sectors. Technology(XLK) was broadly weak, and Consumer Discretionary(XLY) was the weakest dragged lower by Telsa(TSLA). Refer to the below sector indexes weekly performance table for details.

Rising interest rates are not all viewed as a bad thing, as Fed Chairman Jerome Powell said it's a statement of confidence for a robust recovery. Markets seemed divided about whether the rise in 10-year bond yield was due to an upbeat growth expectation or a worrisome increase in inflationary pressures. Stocks on Friday had a very volatile session, eventually finished much higher after initial sharp sell-off, accompanied by obvious higher than average volume. Following are major events: 

1. Nonfarm payroll reported 379k for Feb, roughly twice estimates. Nearly all gains in jobs came in leasure and hospitality industry, especially restaurants.

2. Biden's USD 1.9 trillion stimulus package passed.

3. OPEC to maintain current production levels instead widely expected increase sent oil price higher. 

Technically, among the major three U.S equity indexes, DJI appears to be the strongest as it tested 50dma on Thursday and rebounded back above its 20dma, uptrend is well intact. SPX had a breakdown below its 50dma, rebounded and recovered all its losses on Friday, shut the shorts off with a close above 50dma. Nasdaq(COMP) the weakest one among the three, still away below its 50dma despite sharp "V shape" rebound from its early sold-off. 

China/HK

China SSE had gap-down and Friday as rising U.S yields and inflation expectations spilled into China's stocks, but it managed to recover almost all its losses on close, ended the week flat. China's top regulator officer warned about financial bubbles in the foreign markets. Overall, Chinese stocks were cautious ahead of the annual National People's Congress(NPC), which kicked off on Mar 5. NPC unveiled China's official 2021 growth target of above 6%, a goal widely seen as conservative. 

Technically, both SSE and HSI indexes are above their key technical support levels. HSI index rebounded and closed above its 50dma and the SSE index closed above 3450-3500 support area.

Singapore

STI continued to be the best performer in my weekly indexes table for the second week in a row. Singapore's three local banks led the rebound. The index appears to be bullish and the next immediate target level is at 3100.