<p><span lang="EN-GB">The month of May has begun on a weak footing with </span><span lang="EN-GB">most Asian markets posting declines. China H-shares Index and Indonesia Index led the fall. Key benchmark indices such as S&amp;P 500 Index and MSCI Asia Pacific ex Japan Index are trading near their 200-days moving average level. Both displayed similar chart patterns having tested the 200-days moving average levels on three separate occasions this year. Any break below this key level could lead to a sharp correction and impact risk sentiments. </span></p><p><span lang="EN-GB"> </span><span lang="EN-GB">The US dollar Index continued its upward climb and has broken above its 200-days moving average level. Since mid-April, the US Dollar Index has risen more than 3% to 92.56. Further gains in the US dollar Index could be an impetus for equity market to break its support level. </span></p><p><span lang="EN-GB"> </span><span lang="EN-GB">Last week, the US reported weak employment data in April. Nonfarm payroll grew 164k, below expectations of 192k. The payroll miss is attributed to the early April winter storm in the Midwest. Wages are also soft. </span><span lang="EN-GB">Average hourly earnings rose by 2.6% y-o-y, weaker than expected 2.7%. Unemployment rate declined to 3.9%, its lowest level since 2000. </span><span lang="EN-GB"></span></p><p><span lang="EN-GB"> </span><span lang="EN-GB">Although trade war rhetoric has toned down, uncertainty remains. Last week’s high level trade talks between US and China </span><span lang="EN-GB">ended disappointingly without any conclusive resolution. China is expected to release trade figures as well as inflation data in the coming week. This will shed further clues on the impact that heightened trade tensions has on China. Other key macro data reporting this week include Industrial Production for Germany, UK and France. </span></p><p><span lang="EN-GB"> </span><span lang="EN-GB">For earnings release this week, we will see Walt Disney and Anheuser-Busch as well as large-cap German companies such as Siemens, Deutsche Telekom and Deutsche Post reporting results. In Asia, we will see </span><span lang="EN-GB">NTT, Hon Hai, Samsung Life and Westpac as well as <span>large-cap Japanese companies such as T</span>oyota, Panasonic and Softbank<span> reporting results.</span></span></p><p><span lang="EN-GB"> </span></p><p><strong><span style="text-decoration: underline;"><span lang="EN-GB">Monday – 7 May</span></span></strong><span lang="EN-GB"></span></p><p><span lang="EN-GB">Macro data: HK and China Foreign Reserves</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">Earnings:</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">US and Europe – Cognizant Technology</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">Asia – OCBC, China Overseas Land, ICICI, Axis Bank, Westpac</span><span lang="EN-GB"></span></p><p><span lang="EN-GB"> </span></p><p><strong><span style="text-decoration: underline;"><span lang="EN-GB">Tuesday – 8 May</span></span></strong><span lang="EN-GB"></span></p><p><span lang="EN-GB">Macro data: China Exports, Imports and FDI, Germany Industrial Production</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">Earnings:</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">US and Europe – Disney, Intesa Sanpaolo, Deutsche Post</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">Asia – BOC HK, Mitsubishi, KB Financial, JD.com</span><span lang="EN-GB"></span></p><p><span lang="EN-GB"> </span></p><p><strong><span style="text-decoration: underline;"><span lang="EN-GB">Wednesday – 9 May</span></span></strong><span lang="EN-GB"></span></p><p><span lang="EN-GB">Macro data: France Industrial Production</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">Earnings:</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">US and Europe – Anheuser-Busch, Siemens, Deutsche Telekom</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">Asia – Toyota Motors, Softbank, HK Exchange, Amore Pacific</span><span lang="EN-GB"></span></p><p><span lang="EN-GB"> </span></p><p><strong><span style="text-decoration: underline;"><span lang="EN-GB">Thursday – 10 May</span></span></strong><span lang="EN-GB"></span></p><p><span lang="EN-GB">Macro data: US and China CPI, UK Industrial Production</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">Earnings:</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">US and Europe – NVIDIA</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">Asia – Bridgestone, Panasonic, Advanced Info</span><span lang="EN-GB"></span></p><p><span lang="EN-GB"> </span></p><p><strong><span style="text-decoration: underline;"><span lang="EN-GB">Friday – 11 May</span></span></strong><span lang="EN-GB"></span></p><p><span lang="EN-GB">Macro data: <span> </span>HK GDP, India Industrial Production</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">Earnings:</span><span lang="EN-GB"></span></p><p><span lang="EN-GB">Asia – Hon Hai, NTT, Samsung Life</span></p><p><strong><span lang="EN-GB"> </span></strong></p><p><strong><span lang="EN-GB">Edmund Chan, CFA</span></strong></p>