Weekly Wrap Content for the week of Nov 25:
1. Week
47 major indexes performance;
2.
Week 47 US sector indexes performance;
3.
Major indexes weekly charts of support and resistance levels;
U.S
For the
week of Nov 25, the U.S stocks produced gains during the holiday-shortened
week, with the S&P 500 Index finishing above the 4,000 level for the first
time in two months. Favorable earnings reports in the retail and technology
sectors as well as indications that the Federal Reserve is open to slowing its
pace of rate hikes helped fuel the rally. Markets overcame worries early in the
week about the potential impact of a new round of coronavirus-related lockdowns
in China on global economies (see China section below). As expected, trading
was light heading into the Thanksgiving holiday. Refer to major indexes’ weekly
performance tables below.
1. Rate hikes to slow down. The minutes from the Fed’s early-November policy meeting, which were released Wednesday, said that a “substantial majority of participants” thought that slowing the pace of hikes would be appropriate, although the fed funds rate may end up higher than previously expected.
2. Bond yields. As we approach the end of the Federal Reserve’s tightening cycle and a potential peak in yields, it’s expected the Fed’s final rate hike will likely occur in the first half of next year (likely February or March), implying that bond yields may be peaking in the months ahead.
SPX
sectors in play
All 11
sectors in the S&P 500 ended green this week. Defensive stocks such as
Utilities(XLU) and Consumer Staples(XLP) outperformed. Energy(XLE) and
Tech(XLK) lagged. Refer to below SPX sector indexes weekly performance table.
Technically, DJI index
was in its 3rd weekly gains streak, hitting seven-month high. Tech
heavy Nasdaq index had an insider week, consolidating within its previous
weekly range, while SPX closed above 4000 level for the first time in two
months. Click to view below the three major indexes’ weekly charts.
China/HK
China’s stock markets were
modestly positive for the week as investors balanced new coronavirus
restrictions against signs that authorities will provide more supportive
measures to stimulate the economy. News of additional funding for property
developers also provided a boost to sentiment. The Shanghai Composite Index gained
0.14%, while Hong Kong’s Hang Seng Index eased 2.33%.
COVID restrictions
tightened across China as cases soar. Several
cities in China imposed broad restrictions on movement and introduced mass
testing as daily coronavirus cases approached all-time highs. Although no
citywide lockdowns have been announced, the widespread restrictions have
increasingly disturbed economic activities across the country, raising further
concerns about the economic outlook in China even as authorities attempt to
make their responses more targeted and less disruptive.
Chinese authorities
step in to support economic growth. Chinese authorities increased hopes of
further monetary stimulus as they attempt to amplify support for the Chinese
economy, which is under strain from surging coronavirus cases and newly imposed
lockdowns. On Friday, the People’s Bank of China announced a 25-basis-point cut
to the reserve requirement ratio (RRR) for banks after it pledged that monetary
tools will be used “in a timely and appropriate manner” to maintain reasonably
ample liquidity, according to Bloomberg.
Singapore
STI index retreated
0.85% for the first time after four-week of consecutive up, seen profit-taking
after hitting resistance around 3300 level, trading volume seen thin during World
Cup and also black Friday holiday season. Immediate downside technical support
at 3230- 200dma, upside resistance to continue watch around 3300 recent top.
DISCLAIMER:
The above WeeklyWrap contains data/reports from various public available market reports
No comments:
Post a Comment