Weekly Wrap Content for the week of Jan 12:
1. Week
2 major indexes performance;
2.
Week 2 US sector indexes performance;
3.
Major indexes weekly charts of support and resistance levels;
U.S.
For the week
ended 12 Jan, U.S three major indexes moved higher, with large-cap growth
stocks and the tech-heavy Nasdaq outperforming the broader market. Several tech
giants recorded solid gains, including Facebook parent Meta Platforms and
chipmaker NVIDIA. Energy stocks underperformed as oil prices pulled back early
in the week. The week brought the unofficial start of earnings season, with the
nation’s four largest banks—JPMorgan Chase, Citigroup, Bank of America, and
Wells Fargo—reporting fourth-quarter results on Friday. Coming Monday is a
public holiday, there is no trading. Refer to major indexes’ weekly performance
table below.
Key highlights for the year and outlook:
1. Uptick in CPI as shown on latest data report on Thursday. All eyes were on the release of the consumer price index (CPI), which increased 3.4% in December from a year ago, a slight acceleration from last month's 3.1% reading. Core CPI, which excludes food and energy, continued to slow, falling to 3.9% from 4%. While that was the lowest reading in two and half years, and was mostly in line with forecasts, core inflation is still well above the Fed's target 2%. The trend of inflation remains lower, but the road to the Fed's 2% target could be bumpy.
2. Fed rate cuts is likely on the way. The bond market is currently pricing in a 75% chance that the first rate cut will be delivered in March and that there will be two more rate cuts by June. It is possible that at the first Fed meeting of the year at the end of the month, policymakers might push back against these expectations. There will be two more inflation readings and two jobs reports before March, so the debate will continue.
SPX
sectors in play
Seven
out of the 11 sectors in SPX closed with weekly gains. Large-cap growth stocks such
as Tech(XLK) and Communication Services(XLC) outperforming the broader market.
While Energy stocks(XLE) underperformed as oil prices pulled back
early in the week. Refer to below SPX sectors ETF weekly performance table.
The SPX and Nasdaq have recovered full losses from previous week,
while DJI recovered most of its previous loss. All three indexes uptrend are
well intact. Click below three indexes for their weekly charts respectively in
a new window.
China/HK
Stocks in China retreated as data showed that China’s deflationary
cycle persisted into December, raising expectations of increased government
support in 2024. The Shanghai Composite Index(SSE) fell 1.61%, while blue chip
CSI 300 gave up 1.35%. In Hong Kong, the benchmark Hang Seng Index fell 1.76%. (Refer
to the above weekly performance table).
Key highlights for the week and outlook
for China/HK:
1. The consumer price index fell 0.3% in December from the prior-year period, the third monthly decline, easing from November’s 0.5% drop as lower pork prices continued to weigh on food prices. The producer price index declined 2.7% from a year ago compared with November’s 3% drop, and marked the 15th monthly decline.
2. The latest inflation data raised expectations for some analysts that China’s central bank would lower its key policy rate and inject more cash into the financial system at its next policy meeting amid worries that sustained deflation will increasingly weigh on the economy.
3. China’s exports rose a better-than-expected 2.3% in December from a year earlier, up from a 0.5% rise in November.
Click below title to view weekly charts.
Singapore
STI ticked up with 0.23% weekly gain. The local index traded within
its previous week’s range around 200dma. About half of the 30 STI index stocks
closed with weekly gains. Seatrium was the top gainer with 7.7% up. Two banks
DBS and OCBC also among top gainers. Top losers were DFI and CDL with 4% and 3%
losses.
Source: Some
contents and data excerpted from various public market reports.
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