Weekly Updates 2/6/25 – 6/6/25 June 3, 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 (26 May – 30 May 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 the US longer term bonds such as 10 year and 20 year bonds spiking in yields. Ringing alarm bells of a potential decrease in demand for the “Safe Haven” asset. As bond traders digest the implications the “big beautiful bill” will do to the overall deficit of the US and its ability to repay its debts. NVIDIA announced a stellar earnings beat and was up 5.6% for the week at a point. The US trade court blocks President Trump’s global tariffs, but the Appeals court grants stay.
Updates for the week (2 June – 6 June 2025)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week’s upcoming macro-economic news releases mainly focuses on the US releasing Manufacturing and employment data such as ADP Employment Change, Change in Nonfarm Payroll and the Unemployment rate. With manufacturing factory and durable goods orders expected to decrease -3.1% and -6.3%, analysts expect a major slowdown in upcoming manufacturing orders. However, analysts expect a strong labor market with ADP employment change of 110k compared to 62k prior. With solid employment growth and unemployment rate expected to remain at 4.2%.
US earnings releases for this week focus on CrowdStrike, Broadcom in the tech sector and discount retailers like Dollar Tree and Dollar General. Both Dollar Tree and Dollar General have an impressive 18% and 28.6% gains YTD in share price appreciation. Market participants will be eager to see how these two companies manage in a Trump tariff environment. Market participants should focus on not just the earnings release but the forward guidance that companies provide and their commentary on how they plan to navigate the upcoming business environment. There are no major earnings releases in HK, China and SG markets.
Tokyo Index: Overbought RSI Level by Louis Hee
Key Entry Price Pivot(s)
- 2821
Recommended Trade
- Short below 2821
- Take Profit at 2606
- Stop Loss at 2900
Alternative Case
- Long above level 2821
- Take profit at 2950
- Stop loss at 2689
Remarks
- The 4-hour chart of Tokyo Index is showing that the RSI level has reached an overbought level.
- Traders can potentially seek to take a short trade at the high level of RSI. Otherwise, traders could take a long position if price breaks above the 2821 resistance level.
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.
