Weekly Updates 13/1/25 – 17/1/25 January 13, 2025
This weekly update is designed to help you stay informed and relate economic and company earnings to potentially value-add your CFD (Contract For Difference) trading via hedging (risk reducing). This article should be used for educational purposes only and not as financial advice. We urge all traders to carry out your own due diligence before submitting trades.
Recap for last week (06 Jan – 10 Jan 2025)
*These prices are taken based on the previous Monday’s opening price and the preceding Friday’s closing price.
Last week began with a strong note when reports suggesting the incoming Trump administration might adopt a more lenient approach to tariffs than previously anticipated which lifted most indexes on Monday. However, by the end of the week the US equities declined where Nasdaq fell by 1.18% which is the biggest weekly drop since mid-November. This is mainly due to Donald Trump dismissing the reports and highlighting that there is persistent inflationary pressures as well as strong labour market which indicated by last week’s economic data. With all these concerns, Fed’s meeting minutes which was released last Wednesday revealed that most policy makers viewed the risks to inflation to have increased where they favored in holding the interest rate steady in January.
Updates for the week (13 Jan – 17 Jan 2025)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week ahead focuses on Inflation data coming out of the US with both CPI and PPI data coming out on Tuesday and Wednesday. With CPI expected to remain flat and CPI YoY data to hover around 2.9%, market participants are looking at inflation numbers closely to have a clearer picture of upcoming moves from the Fed. Furthermore, the initial jobless claim is expected to pick up slightly to 210k from 201kprior. China is publishing its GDP, Industrial production and retail sales YoY data on Friday. These measures will give market participants a broad base of information on the overall strength of the China economy.
The highlight for earnings releases this week will be mainly from the US, especially JPMorgan as it is one of the several financial stocks where it is due to release its Q4 2024earnings on Wednesday. Consensus is expecting banks earnings and revenue to be lower from QoQ but higher on a YoY basis due to a stronger economy with lower rates(cut by the Feds). Mainly JP Morgan is gaining a lot of market share across different core businesses where even mid-size businesses are looking into doing business with JP Morgan. It has also been seen by many analyst that JP Morgan is expanding their services across investment banking and M&A. This earning release will set the tone and the market trend for other financial institutions.
Another noteworthy earnings will be United Health Group. It is considered one of the more volatile components in DJI as the Wall Street reacted to one of the news where its key executive was shot which lead to the cancellation of its Investor Day. The stock fell 13.5% over a 3 month period. On the other hand, analysts are viewing it as a buying opportunity due to the high potential of a pullback. The company highlighted its meaningful diversification that includes expanding service offering and integrating services to improve its value-based-care positioning which allow the company to have a key differentiator in the health insurer industry.
UK100 Index : Wide Range Trading by Jun Yuan Kwong
Key Entry Price Pivot(s)
- $8,400
Recommended Trade
- Short at $8,400
- Take Profit: $8,250
- Stop Loss: $8,490
Alternative Case
- Long at $8,500
- Take Profit: $8,800
- Stop Loss: $8,350
Remarks
- The UK 100 Index has been trading within a wide range since August 2024, withsupport at $8,000 and resistance at $8,400. The $8,400 level has proven to be astrong resistance, having been tested multiple times.
- Analyzing the daily chart of the UK 100 Index, the price is moving toward theresistance level.
- A potential short trade could be considered if the price hits the resistance andforms a bearish bar with a wedge top pattern.
If you have any feedback or questions, feel free to email us at samht@phillip.com.sg or onishathyeyn@phillip.com.sg or cfd@phillip.com.sg.
Disclaimer
This material is provided to you for general information only and does not constitute a recommendation, an offer or solicitation to buy or sell the investment product mentioned. It does not have any regard to your specific investment objectives, financial situation or any of your particular needs.
Accordingly, no warranty whatsoever is given and not liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of your acting based on this information. Investments are subject to investment risks.
The risk of loss in leveraged trading can be substantial. You may sustain losses in excess of your initial funds and may be called upon to deposit additional margin funds at short notice. If the required funds are not provided within the prescribed time, your positions may be liquidated.
The resulting deficits in your account are subject to penalty charges. The value of investments denominated in foreign currencies may diminish or increase due to changes in the rates of exchange.
You should also be aware of the commissions and finance costs involved in trading leveraged products. This product may not be suitable for clients whose investment objective is preservation of capital and/or whose risk tolerance is low.
Clients are advised to understand the nature and risks involved in margin trading. You may wish to obtain advice from a qualified financial adviser, pursuant to a separate engagement, before making a commitment to purchase any of the investment products mentioned herein. In the event that you choose not to obtain advice from a qualifies financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest and we do not offer any advice in this regard unless mandated to do so by way of a separate engagement.
You are advised to read the trading account Terms & Conditions and Risk Disclosure Statement (available online at www.poems.com.sg) before trading in this product. Any CFD offered is not approved or endorsed by the issuer or originator of the underlying securities and the issuer or originator is not privy to the CFD contract. This advertisement has not been reviewed by the Monetary Authority of Singapore.
CFD Disclaimer
Investments are subject to investment risks. The risk of loss in leveraged trading can be substantial. You may sustain losses in excess of your initial funds and may be called upon to deposit additional margin funds at short notice. If the required funds are not provided within the prescribed time, your positions may be liquidated. The resulting deficits in your account are subject to penalty charges. The value of investments denominated in foreign currencies may diminish or increase due to changes in the rates of exchange. You should also be aware of the commissions and finance costs involved in trading leveraged products. This product may not be suitable for clients whose investment objective is preservation of capital and/or whose risk tolerance is low. Clients are advised to understand the nature and risks involved in margin trading.
You may wish to obtain advice from a qualified financial adviser, pursuant to a separate engagement, before making a commitment to purchase any of the investment products mentioned herein. In the event that you choose not to obtain advice from a qualified financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest and we do not offer any advice in this regard unless mandated to do so by way of a separate engagement. You are advised to read the trading account Terms & Conditions and Risk Disclosure Statement (available online at https://www.poems.com.sg/) before trading in this product.
Any CFD offered is not approved or endorsed by the issuer or originator of the underlying securities and the issuer or originator is not privy to the CFD contract.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
This material is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should seek advice from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products.
About the author
Sam Hei Tung (Assistant Manager, Dealing) & Onisha Thye (Dealing)
Sam graduated from National University of Singapore with a Master of Science in Finance. He personally manages his own investment portfolio and does equity and economic research in his free time. Sam believes that education and information is essential to making good financial decisions.
Onisha is a dealer at the CFD Dealing Desk. She graduated from Monash University with a double major in finance and econometrics. Her natural curiosity for finance is what drove her to be in this field as she is fascinated by all the possibilities and opportunities.
