Weekly Wrap Content for the week of Nov 11:
1. Week
45 major indexes performance;
2.
Week 45 US sector indexes performance;
3.
Major indexes weekly charts of support and resistance levels;
U.S
For the
week of Nov 11, the U.S stocks recorded strong gains as investors celebrated
reassuring inflation data and bond yields fell. The S&P 500 Index recorded
its best week since June and hit its best intraday level in two months. After
the release of consumer inflation data on Thursday, the index recorded its
largest daily gain since April 2020. Growth stocks—technology and
internet-related shares, in particular—benefited the most from falling yields,
which typically increase the perceived value of future profits. Refer to major indexes’ weekly performance tables below.
Key highlights for the week and outlook:
1. Cooling Inflation: Data released on Thursday showed the headline consumer price index (CPI) rose 0.4% in October, less than consensus expectations of roughly 0.6% and bringing the year-over-year increase to 7.7%—still well above the Federal Reserve’s target, but the slowest increase since January. Also core inflation retreats to 6.3% from a 40-year high of 6.6% in September.
2. Midterm election: Tuesday’s midterm election results and the chance that the Democratic Party might retain some control of Congress may have weighed on markets when they opened on Wednesday morning, with some investors favoring a divided government that would restrain new spending and regulation.
3. FTX crypto exchange bankruptcy Saga: The collapse of the leading cryptocurrency exchange this week drove a further decline in Bitcoin and other currencies and appeared to foster some broader market volatility.
SPX
sectors in play
All 11 sectors in the S&P 500 ended green this week. Technology(XLK) and Communication Services(XLC) sectors outperformed. Growth stocks—technology and internet-related shares benefited the most from falling yields. The usual defensive Utilities(XLU) and Healthcare(XLV) stocks lagged. Refer to below SPX sector indexes weekly performance table.
Indexes technical levels
Technically, DJI index
rebounded back to around three months high. SPX and Nasdaq indexes were back to
around their two months’ respective highs. Dow was the strongest one which
crossed major moving averages 200dma and 250dma already. Click to view below
the three major indexes’ weekly charts.
China/HK
China’s stock markets received
a late boost from the surprise drop in U.S. inflation but trailed most other
global markets as investors worried about new signs of economic fragility. The Shanghai Composite Index gained 0.54% this
week.
News of additional
support for the troubled housing market helped provide some relief to property
stocks. Chinese officials ordered second-tier banks to extend another USD 56
billion in loans to developers, according to Bloomberg.
A surge in COVID
cases, with the number of daily cases reaching above 10,000 for the first time
in over a year, threatened further lockdowns and appeared to weigh on sentiment
for much of the week. Nevertheless, Friday’s rally also
seemed to have been helped by a relaxation in China’s strict “zero-COVID”
policy.
Data shows China’s
Exports fell 0.3% in Oct, well below the 4.3% increase that that analysts
polled by Reuters had predicted and the first drop since early in the pandemic.
Imports also fell 0.7% as weakening domestic demand compensated for increases
in purchases of most commodities.
In Hong Kong, the Hang
Seng index rallied for 2nd week in a row, gained another 7.21% after
previous week’s 8.73% surge, which was the biggest weekly gain in 11 years.
Singapore
STI index closed 3rd
week up in a row, tested its 200dma at 3231 level on Friday and closed just off
it. Do watch immediate resistance level
3231(200dma) in coming week.
Source: Contents/Data including
information from various public market reports
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