The Week Ahead Feb 2022 - [STI, HSI, NASDAQ & S&P]

The start of the week was a good one for Asia markets as we saw many of our Asian counters hitting their porfit targets. But as the week drew to a close, hot inflation numbers spook the markets, sending the 10 year yield curve temporarily above 2%. To add fuel to the fire, talks about an emergency fed meeting to raise rates before March further escalated the drop. Goldman even sees Fed hiking rates from 5 to 7 times this year which caused further panic. Also, Russo-Ukrainian war continues to spark fears in the market causing the S&P500 to drop even more on Friday but Oil gained an upper ground. All in all, Asia continues to outperform the US markets.

Key Events to Watch For

As tension carries on this week, keep a lookout for development on the Ukraine front and watching fed to see any updates from them.

Wednesday – Crude Oil Inventories

Thursday – Core CPI ( The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy). Watch for this as it gives more signs of inflation data.

Friday – Fed Monetary Policy report (The Federal Reserve Act requires the Federal Reserve Board to submit written reports to Congress containing discussions of “the conduct of monetary policy and economic developments and prospects for the future.”)

Technical Levels to Watch For This Week

STI

The STI continues to outperform the markets and even our expectations pushing up higher this week. We’re glad a lot of our counters are finding their profit targets with some hitting over multiple targets in the week. STI has been up close to 2 weeks already and it might be time for some healthy pullback if not it’ll be tough for re-entries. We’re eyeing a pullback to 3366 level. So far, the banks are once again pushing the index up while other recovery counters like comfort and sats are also pulling their weight.

HSI

Over in Hong Kong, the markets got a boost as reports of China State funds buying stocks to help stem declines. Covid cases continues to raise and strict measures are in place to curb the spread. HSI has hit our short term upside target and pulled back to a level of support both horizontal and the 5ema. With a few negative sentiments out now, we’re cautious going into this week. If the 5ema doesn’t hold, we might see it get pushed down to the 20ema of around 24330 area.

For more analysis on the US market and where it might head to, you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

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