Weekly Updates 18/9/23 – 22/9/23 September 18, 2023
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 (11 Sep 2023 – 15 Sep 2023)
*These prices are taken based on the previous Monday’s opening price and the preceding Friday’s closing price.
Last week, the ECB announced a 10th consecutive hike of its interest rates with a magnitude of 25 basis points. The increase in the deposit rate by 0.25% to 4% takes it past the previous record high in 2001. This decision shows that policymakers remain worried about the inflation staying above target as compared to having a sharp economic downturn. The S&P 500 records another weekly loss due to worries over inflation pressure while pricing in the fact that the Fed will keep interest rates high for a longer period.
Updates for the week (18 Sep 2023 – 22 Sep 2023)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week’s macro news mainly focuses on the FOMC from the Federal Reserve of US releasing their Rate decision which market participants expect to remain the same (Upper Bound at 5.5%). The US Leading Index is expected to remain negative resulting in overall deteriorating macro economic factors from Leading Credit Index to Jobless Claims and more factors. Investors and Traders should position their portfolios and positions to have better risk management during release of key macro news.
This week’s corporate earnings focuses on FedEx from the US and Top Glove from Singapore stock markets. Analysts expect top line numbers from FedEx to drop Year on Year while FedEx share price has increased ~43% year to date.
If you hold equity positions in these stocks, you can hedge your positions using CFDs to mitigate the risk of disappointing earnings releases.
For those looking to speculate or capitalize on the increased volatility, CFDs provide leverage and ease of going long and short across a broad range of products available.
UK 100 Index: Potential Further Upside – By Jun Yuan Kwong
Key Entry Price Pivot(s):
- 7730
Recommended Trade:
- Long above 7730
- take profit at 7860
- stop loss at 7630
Alternative Case:
- Short below 7730
- take profit 7530
- stop loss at 7830
Remarks:
- UK 100 Index had recently broken out the downtrend line and 200 EMA resistance level with a strong bullish bar on 14 Sep 2023.
- We could potentially look to take a long trade on the UK 100 Index if there is a follow-through on 15 Sep 2023 in order to confirm an uptrend.
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.
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About the author
Sam Hei Tung (Dealing) and 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 that are available to grow one’s wealth, either through trading or investment.
