Market News & Analysis
Market Brief: Festive Cheer Comes Early For Stock Bulls
Kelvin Wong December 13, 2019 2:24 PM
- Asian stock markets are in “risk on” mood to celebrate a festive cheer with a treble of positive news flows; U.S. President Trump has approved the terms of the Phase One U.S.-China trade deal and suspended the additional 15% tariff on China products that are set to take place on 15 Dec, the U.S. Federal Reserve’s has expanded its repo programme to US$365 billion through Jan 2020 in the short-term funding market to prevent any disorderly funding squeeze and U.K PM Boris Johnson’s Conservative party that has won a majority in the UK snap general election that is likely to see greater clarity for Brexit.
- Meanwhile, the latest Bank of Japan’s “tankan” quarterly survey has showed that big Japanese manufacturers’ business mode sank to a near 7-year low, the 4th consecutive quarter of decline.
- The Nikkei 225 has shrugged off the lackluster “tankan” data and stage a magnificent rally of 2.64%, the best intraday performance seen so far in the past 10 days led by Basic Materials and Consumer Cyclicals stocks. These two sectors have gained by 3% and 2.44% respectively.
Price Acton (derived from CFD indices):
- Japan 225: Bullish breakout from 23650 medium-term range resistance in place since 07 Nov 2019. Short-term support now at 23780 (today’s Asian session gapped up) with further potential upside towards intermediate resistance at 24400 (01 Oct 2018 major swing high area).
- Hong Kong 50: Underperformer in the past 6-month has surged as well. Short-term support now at 27100 (former minor swing high areas of 19/26 Nov 2019 with further potential upside to test the next intermediate resistance at 28000/2000 (former minor range support from 26 Jun/15 Jul 2019 & 61.8% retracement of the previous slide from 03 May to 15 Aug 2019 low).
- Australia 200: Continued to be stuck inside a range bound configuration. Expect sideways movement between 6780 and 6670. Bulls need to have a break above 6780 for a potential push up towards 6840 intermediate resistance in the first step (former minor swing lows of 29 Nov/02 Dec 2019).
- Germany 30: Bullish breakout above the 13350 medium-term range resistance in place since 19 Nov 2019. Eyeing the all-time high area of 13600/750 next in the first step with short-term support now at 13190 (former minor rang resistance from 05 Dec/09 Dec & minor ascending trendline from 10 Dec 2019 low).
- US SP 500: Bullish breakout above 3147 minor descending trendline from 02 Dec 2019 and surged to a fresh new all-time high, printed a current intraday high of 3183 in today’s Asia session. Key short-term support now at 3155/3150(the former all-time high area printed on 28 Nov/02 Dec 2019 & lower boundary of a minor ascending channel from 03 Dec 2019 low) with a further potential upside to target 3200/220 next (Fibonacci expansion cluster & upper boundary of the minor ascending channel from 03 Dec 2019 low).
Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.