January marks the beginning of fourth quarter earnings season in the world especially in the US. Notwithstanding investor’s disappointmen

January marks the beginning of fourth quarter earnings season in the world especially in the US. Notwithstanding investor’s disappointment from Trump’s press conference, the fourth quarter earnings will likely set the path of the markets. The key companies which released their financial results and have garnered market’s attention were the financials in the likes of JP Morgan, Bank of America and Wells Fargo. Fundamentals aside, key central bankers will take the limelight this week such as speeches from Mark Carney followed by the British Prime Minister – Theresa May on the 17 Jan where she will provide the details of the Brexit plans. In the same week, the ECB will hold a press conference while the Fed Chairman is expected to speak on the 19 Jan before Donald Trump officially takes the office on 20th January. 

•             S&P500 (SPX) - SPX is consolidating in a narrow range below the all-time high level of 2273. SPX is expected to keep trading sideway this week as fund manager position their portfolio ahead of  earning seasons.

•             Hang Seng (HSI) - HSI is consolidating below the resistance of 23000 after breaking out of the downtrend line.

•             Strait Times (STI) - STI broke an eight-month resistance level of 2960 but is now overbought, which indicates a higher pullback risk. The next resistance and support are at 3040 and 2960 respectively.

•             KLCI - KLCI showed a reversal candlestick pattern near the end of last week. This week, the index could pull back to support at 1660.