Weekly Updates 31/7/23 –4/8/23 July 31, 2023

Weekly Updates 31/7/23 –4/8/23

Weekly Updates 31/7/23 –4/8/23

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 (24 July 2023 – 28 July 2023)

Weekly Updates 31/7/23 –4/8/23*These prices are taken based on the previous Monday’s opening price and the preceding Friday’s closing price.

Last week’s market action revolves around the Fed hiking interest rates by another quarter of a percentage point. The Fed also highlight that the economy still needed to slow and the labour market to weaken for inflation in order for it to fall back to the US’s central bank’s 2% target. On the other hand, the HSI reversed losses to rise marginally in early Fruday trade after the PMI data was released where the Chinese yuan hit its weakest against the US dollar since mid-November.

Updates for the week (31 July 2023 – 4 August 2023)

The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.

Weekly Updates 31/7/23 –4/8/23

This week’s macro news mainly focuses on the mainly US’s employment data and China’s production data. Markets participants are paying full attention on the employment numbers releasing this week as higher than expected NFP has been a driver of this year’s stock rally where it signals that the economy is growing too rapid at a pace that could spark worries that the Fed will need to raise rates more than expected. Analyst are expecting China’s Manufacturing to continue to fall as the economic momentum is still weak in China as global economy is also slowing down which likely to put further pressure on demand for China’s products. This also supported by the fall in it’s Caixin PMI where analyst are expected it to fall by 0.4.

Weekly Updates 31/7/23 –4/8/23

The earnings season continues this week with reports due from some of the market’s most widely held names including Amazon, Apple, DBS, OCBC, etc. Recently, Amazon wrapped a successful Prime Day sales event with 375million items sold which it is a sign that the 2nd quarter retail results will be down. Market participants are expecting Apple to have a decline in its revenue as there are huge questions about whether the company will grow more as the Vision Pro mixed-reality goggles won’t ship till 2024 while the AI push on Apple products are still on-going and the iPhone 15 launching is still months away. In SG, all eyes are on DBS and OCBC where the board expectations of the end towards the Fed hiking interest rate while the SORA used by banks to price the loans are seen to slowed down recently which has an impact on the bank’s net interest margins. This also indicates that banks will need to depend more on other steams like fee income or loan growth.

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.

Weekly Updates 31/7/23 –4/8/23

US SP500 Index (INX.IX): Trading Opportunity – By Donny Lew

Weekly Updates 31/7/23 –4/8/23

Key Entry Price Pivot(s):

  • 4460

Recommended Trade:

  • Long when it pull back to support level 4460, take profit at 4610, stop loss at 4390


  • US S&P 500 Index (INX) has seen a strong uptrend.
  • We are waiting for it to pull back and found support at the 4460.
  • We potentially look to take a long trade on S&P 500 when forming a bullish bar at the support level to continue the uptrend moving ahead.

Weekly Updates 31/7/23 –4/8/23

EUR/JPY rose following BoJ decision and German data

Weekly Updates 31/7/23 –4/8/23

Recommended Trade:

  • Long above 156.00 handle, take profit at 157.50 (previous high), stop loss at 155.00.

Alternative Case:

  • Short below 155.00 levels, take profit at 153.00 (consider let profits run), stop loss at 156.00


  • The 2-day BOJ meeting concluded with an unexpected adjustment to the Yield Curve Control (YCC), leading to market volatility. However, the BoJ interest rate decision remained unchanged and it was commented that the YCC tweak was not a step to normalization. That is, the bank is no-where near raising rates, hence weakening the Yen. On the other hand, Germany’s inflation data came in-line with expectations of 6.5% but lower than the previous 6.6%, and Q2 GDP data disappointed.
  • On a technical front, the pair had a bullish end to the dovish week. The Relative Strength Index (RSI) is just slightly above the midline, with a steep positive slope. These are all indications that the pair is still considered on 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.


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.

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.

No Related Market Journal.

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com