Market News & Analysis

Top Story

S&P drops to key level as recession fears mount

There has been bloodbath on Wall Street. Sentiment turned sour yesterday afternoon and investors have remained in panic mode ever since. The publication of a very poor US manufacturing PMI report was a game changer. Up until now, the US manufacturing and other sectors of the economy had remained resilient despite weakness in other economic regions like the Eurozone and China. BUT now investors are worried that the world’s largest economy has also caught the cold.

So, right now, stocks and the US dollar are falling sharply, causing bond yields to weaken as investors seek the relative safety of government bonds. Dollar-denominated and safe-haven gold has found itself in unexpected demand after falling noticeably in the previous days.

At the time of writing, the major US indices were near their lows and there were no signs of a rebound. However, the S&P 500 was testing its bullish trend line near 2885. Will we see some bargain hunting around these levels? Will the bears ease off the gas? Time will tell. For now, it is worth monitoring the benchmark index closely. Given the over-extended moves, a short-term pullback should not come as major surprise. But if the trend breaks on a closing basis then expect more selling in the latter parts of the week. 

Source: Trading View and City Index. Please note this product may not be available to trade 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 for the complete Risk Disclosure Statement.

Important Notice:

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.