Weekly Updates 17/2/25 – 21/2/25 February 17, 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 (10 Feb – 14 Feb 2025)
*These prices are taken based on the previous Monday’s opening price and the preceding Friday’s closing price.
Last week’s market action revolved around FOMC where Jerome Powell said the FOMC does not need to rush to adjust the policy thus holding interest at the 4.25% -4.5% range which shows that the policymakers are being careful. Many FOMC participants believe that the outlook on inflation and employment is quite balanced. As of now, the FOMC will be in a wait-and-see mode. The S&P 500 hovered near all-time high where last Friday it closed at 3877.5 while the Nasdaq also recorded positive gains bouncing back from negative results from the past 2 weeks. The price of gold climbed to a record high last Friday at $2964 while Silver also rallied to around $34 per ounce which is approaching the highest price level in a decade.
Updates for the week (17 Feb – 21 Feb 2025)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week mainly focuses on US economic data. For Empire Manufacturing data,analysts are expecting a -2% change in manufacturing conditions in Jan 2025 ascompared to Dec 2024 due to President Trump’s announcement on the postponement of tariffs on Canada and Mexico which is expected to weigh this survey in months aheadas well. Housing starts are expected to be lower at 1397K due to higher financing costs and cold weathers back in Dec 2024 which caused it to slow down in Jan 2025. Jobless claims are most likely to hover around 200k which is considered to be an elevated level which signals upward pressure of the unemployment rate in Feb 2025.
US earnings releases for this week focus on retail spending companies – Alibaba and Walmart. Trader and use the results as a proxy for US and China spending outlook. Booking Holdings is also releasing their earnings results on the same day. Hong Kong earnings releases for this week focus on banks with Hang Seng and several other banks releasing earnings. HK analysts forecast that earnings could exceed expectations due to higher revenue and better cost cutting. Meanwhile in Singapore, the banking theme continues with UOB and Hong Leong Finance releasing earnings. Seatrium earnings this week could also be another trading theme after its MOU with BP last week, share price had already risen over 10%.
Japan 225 Index: Range Trading Opportunity By Jun Yuan Kwong
Key Entry Price Pivot(s)
- $40,100
Recommended Trade
- Short at $40,100
- Take Profit: $38,000
- Stop Loss: $40,650
Alternative Case
- Long at $40,800
- Take Profit: $42,000
- Stop Loss: $40,000
Remarks
- The Japan 225 Index has been trading within a wide range since October 2024,with support at $37,800 and resistance at $40,100. The $40,100 level has proven to be strong resistance, having been tested multiple times. A false breakout occurred on January 24th, and the price quickly retraced back to the support level.
- Analyzing the daily chart, the price is moving toward the resistance level.
- A potential short trade could be considered if the price hits resistance and forms a bearish candle as a confirmation signal.
- Alternatively, if the Japan 225 Index breaks out of its 4-month trading range, traders can go long, targeting a measured move of at least 1x the trading range as profit.
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.
