Stocks Rebounded on Easing Omicron Worries

Weekly Wrap Content for the week of Dec 10:

1. Week 49 major indexes performance;

2. Week 49 US sector indexes performance;

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

U.S

For the week ended Dec 10, the major equity indexes rebounded, after two weeks of losses, as fears seemed to abate about the new omicron variant of the coronavirus. Most of the benchmarks moved near their record highs, The SPX index recorded its best weekly gain since February. Refer to major indexes’ weekly performance tables below.

Key highlights for the week/coming week:

1.    Weekly unemployment number for previous week dropped to 184k-the lowest since 1969. The number of open jobs in the U.S. also rose much more than expected to a record 11 million, with most of the gains coming in accommodation and food services. 

2.    Nov consumer price index reported on Friday, rising 6.8% on a YoY basis, the biggest jump since 1982. 

3.    FOMC meeting coming week. The pace of tapering will likely increase from $15 billion per month currently, to perhaps close to $30 billion per month.

SPX sectors in play

Information technology(XLK) stocks drove much of the rally, as solid gains in Apple pushed the market capitalization of the world’s most highly valued public company near USD 3 trillion. Shares of financial firms and utilities lagged but still recorded gains. Refer to below sector indexes weekly performance table.

Technically, all three major indexes uptrend was well intact.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

For the week, the Shanghai Composite Index (SSE weekly chart) rose 1.6% after the central bank cut the reserve requirement ratio (RRR) for banks and November factory gate inflation cooled, easing inflation concerns. However, worries about property sector defaults and the withdrawal of more U.S.-listed Chinese companies dampened sentiment after ride-hailing app Didi Global said it would delist from the New York Stock Exchange earlier this month.

Hang Kong(.HSI weekly chart) stocks rebounded 1^st week after three weeks down, bulls had relief for now as the .HSI index’s key technical support level 23200 hold for now.

Singapore

STI index(STI weekly chart) closed first week up after two weeks losses, rebounded to close just beneath 200dma 3142 level. Current level, there is no clear direction for STI in coming week.