Robust Economic Recovery Against Interest Rate Spike Concern

 Summary of content for the week of  Mar 26:

1. Week 12 major indexes performance;

2. Week 12 US sector indexes performance;

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

U.S

U.S stocks rallied on Friday to finish higher, bring SPX and DJI index into positive returns for the week, while Nasdaq(#COMP) also rallied more than 1% on Friday but the technology dominant index still ended the week down 0.58%. 

The Fed said it will end restrictions on dividends and buybacks on stocks, which benefited already very strong financials after the recent rise in interest rates. The latest round of stimulus checks has been given out since last week, which is likely to boost consumer spending in the coming weeks and months. 

10-year treasuries were relatively calm for the week, cyclicals and growth stocks found support. Energy stocks also traded higher as crude oil prices rebounded as the key global trade route of the Suez Canal continuing to be blocked. Communication services and Consumer Discretionary stocks lagged as the FAANG stocks (FB,AAPL, AMZN, NFLX, GOOGL) +TSLA all have been in a large consolidation range with no clear direction. Refer to below SPY sector indexes weekly performance table for details.

Technically, U.S three major indexes uptrend well intact. 

China/HK

China SSE index recoded a weekly gain, as it rallied on Friday after the Central bank signaled it was not about to tighten monetary policy. SSE index appears found its support at 3400 level after its four-week down streak . HK listed China mainland stocks also performed strongly, particularly property services and real estate management stocks. China and HK also experiencing rotating from growth stocks to value stocks like other major markets. 

HSI index was the worst-performing index in my major indexes weekly performance table below. It spiked down below 28000 level middle of the week but rebounded up to its breakdown level at 28330, as technology and other growth stocks under selling pressure. 

Singapore

STI closed higher for the 5th week in a row, as the majority of banks and cyclical stocks dominant index continues to benefit from rising interest rate and rotation from growth to value stocks.