US equity markets closed marginally lower on Friday amid uncertainties surrounding the proposed delay in corporate tax bill, which was one of the key drivers of stock market rally this year.

This resulted in moderate jump in volatility and triggered some profit-taking activities. Negative sentiment also weighed on the US dollar index, which fell from its three-month high of 95.0 to the 94.4 area.

The tax reform delay, however, was not a catalyst for significant selloff in both equity and currency markets that could change the big picture of the rally. S&P 500 index is still on an uptrend despite of some weakness in momentum. The downside is protected by upbeat third quarter earnings, improved fundamentals and a tight job market.

In Asia, equities outperformed the US last week, with Hang Seng index registering 1.7% weekly gain to its decade high of 29,100 area. Technically, the Hang Seng Index has broken out above its 200% Fibonacci Extension level of 28,900 and its next major resistance level will become psychological level of 30,000. Trend indicator 10-Day Simple Moving Average and SuperTrend (10,3) are both sloped upwards, suggesting uptrend remains intact.

China’s e-commerce giant Alibaba has celebrated its iconic ‘Single’s Day’ with a new record single-day sales of 168.2 billion renminbi on 11th Nov. This marked some 39% jump from a year ago.

In Singapore, earnings from UOL group, SATS, Citi Development, GLP and Yangzijiang shipbuilding have all surpassed market expectations. So far, 14 STI components have beat, whereas 7 have missed market consensus, according to Bloomberg data.

Technical Analysis:

Hong Kong 50 – Cash

  • The 10-Day Simple Moving Average and SuperTrend (10,2) are both sloped upwards, suggesting uptrend remains intact
  • Immediate support and resistance levels at 29,050 and 29,650 respectively
  • Trading within a upward channel; the upper range of the channel may serve as an immediate resistance

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