Payroll Grow Beat Expectation, Stocks Hit New Records

 Summary of content for the week of Aug 6:

1. Week 31 major indexes performance;

2. Week 31 US sector indexes performance;

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

U.S

For the week of end of Aug 6, U.S all three major indexes finished hitting new record highs, with the latest jobs report reflecting the broadly favorable fundamental backdrop. Refer to major indexes weekly performance table below.

Major events happened in the week:

1. July nonfarm payroll report tops forecasts. Nonfarm payrolls rose by 943k jobs in July, compared to estimate of an 858k rise. 

2.    The unemployment rate fell to 5.4% from June's 5.9% rate, compared to expectations of a decrease to 5.7%.

Better job report provided some optimism, but also uncertainty over what it could mean for future Fed tapering. Within SPX sectors, a sharp rise in longer-term interest rates following Friday’s strong payroll report mean higher leading margins for banks(XLF), and the small utilities sector(XLU) also outperformed. Consumer Staplers (XLP)lagged. Refer to SPX sector indexes weekly performance below.

Technically, the three major indexes weekly charts remain in strong uptrend. Refer to below major indexes weekly charts.

China/HK

Mainland China stocks rose as the previous week’s steep declines attracted some buyers. SSE was the best performer with 1.79% gains for the week. Refer to the above weekly indexes weekly performance table. Domestic investors appeared to avoid market sectors that have recently drawn criticism from the government in favor of areas with strong official support.

China faces coronavirus outbreak. China grappled with its biggest COVID-19 outbreak since the virus appeared in the city of Wuhan in 2019. New Delta variant outbreak that began in late July when a group of airport workers tested positive in the city of Nanjing. 

Technically, the .HSI index bounced this week after two-week consecutive selloff. The index expected to be stabilised around 26000 support level. SSE index bounced above its 50 weekly MA after pervious’ week slump. Technical still bullish. 

                              

Singapore

STI index appears very resilient and consolidated in a tight range over past two months. Immediate resistance at 3194 recent high and major support at 3104 recent low. With bullish bias.