FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT

03 Oct

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 03 October 2022

/ CSFX Analytics

OPEC+ Supply Cut This Week

Asian Pacific shares were mixed on Monday. The Shanghai Composite is down 0.55% at 3,024.39. Overall, the Singapore MSCI is down 0.29% at 278.10. Over in Hong Kong, the Hang Seng Index is down 1.52% at 16,948.00. In Japan, the Nikkei 225 is up 0.46% at 26,060.00, while the Topix index is up 0.05% at 1837.00. South Korea’s Kospi is down 0.71% at 2,155.49. Australia S&P/ASX 200 down 0.27% at 6456.90.

Top News of the Day:

Oil prices rallied in early trade on Monday following multiple reports that the OPEC+ will decide on supply cuts during a meeting this week, as it grapples with weakening prices.

Multiple reports said on Monday that the Organization of Petroleum Exporting Countries and its allies (OPEC+) is considering production cuts of over 1 million barrels a day (bpd) when it meets on Wednesday, in order to support weakening crude prices.

Market Summary as per 30/09/2022:

European equities Friday closing. The DAX futures contract in Germany traded up 1.16% at 12,114.36, CAC 40 futures up 1.51% at 5762.35 and the UK 100 futures contract in the U.K. up 0.18% at 6,893.82.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 1.71% at 28725.52. The S&P 500 down 1.51% at 3585.61 and the Nasdaq 100 down 1.73% at 10971.22, NYSE closes down 1.00% at 13472.18.

Top Market News Today:

In the Forex market, GBPUSD up 0.78% at 1.1242. The USDJPY up 0.03% at 144.765. The USDCHF down 0.28% at 0.9841. EURUSD up 0.25% at 0.9825, EUR/GBP down 0.38% at 0.8742. The USD/CNY flat at 7.1135 at the time of writing.

In the Commodity market U.S. Gold futures up 0.40% at $1,667.03. Elsewhere, Silver futures up 2.48% at $19.473 per ounce, Platinum up 0.70% at $865.00 per ounce, and Palladium up 0.39% at $2166.50.

Crude Oil up on Monday; Brent Crude Oil up 2.56% at $87.46 per barrel while U.S. West Texas Intermediate (CLc1) up 2.64% at $81.335.

In the Cryptocurrency Markets, Bitcoin at 19120.00 down 1.57%, Ethereum down 3.49% at 1285.50, Litecoin at 52.89 up 2.06%, at the time of writing.

Top Market Segment to Watch Out Today:

Tesla: Tesla (NASDAQ:TSLA) delivered 343,830 electric vehicles (EVs) in Q3, the company announced Sunday. During the year-ago quarter, Tesla delivered 254,695 vehicles, or growth of 35%.

Q3 deliveries were lower than expected as analysts were looking for 359,162 vehicle deliveries, according to Refinitiv. The Bloomberg consensus stood at 357,938 while estimates compiled by Street Account showed that analysts were expecting Tesla to report deliveries of 364,660 cars.

Economic News:

US: Several Fed policymakers are due to make appearances during the week, including New York Fed President John Williams, Atlanta Fed President Raphael Bostic, Chicago Fed President Charles Evans, San Francisco Fed President Mary Daly, and Cleveland Fed President Loretta Mester.

Investors are assessing the likelihood of another 75 basis-point rate hike at the Fed’s November meeting. Recent comments by Fed officials have indicated that they want to see clear evidence of slowing inflation before they let up on the policy tightening.

The Fed’s policy rate is now in the 3.00%-3.25% range, a full 3 percentage points higher than where it was at the start of 2022, and officials have penciled in more rate rises later this year and in 2023.

Euro Zone: Russian manufacturing activity grew at its fastest rate in 3-1/2 years in September, driven by rises in production, new orders and client demand, a business survey showed on Monday, though Western sanctions continued to weigh on export business.

The S&P Global (NYSE:SPGI) Purchasing Managers’ Index (PMI) rose in September to 52.0 from 51.7 in the previous month, climbing higher above the 50.0 mark that separates expansion from contraction to its highest point since March 2019.

“Client demand was focused on domestic customers, however, as new export orders declined steeply,” S&P Global said in a monthly survey. “The decrease in foreign client demand was attributed to the loss of customers and the impact of sanctions.”

The United States and European Union last week promised to impose more sanctions on Moscow after Russia staged referendums in four Ukrainian regions and later declared that it was annexing them.

Top Economic Releases Today:

U.S. ISM Manufacturing PMI (Sep) today at 10:00 this time estimated 52.20, previously which was 52.80.
55, this time estimated 48.30, previously which was 49.10.
JAPAN Tokyo Core CPI (YoY) (Sep) today at 19:30 this time estimated 2.80%, previously which was 2.6%.

U.K. Manufacturing PMI (Sep) today at 04:30 this time estimated 48.5, previously which was 47.3.
AUSTRALIA RBA Interest Rate Decision (Oct) today at 23:30 this time estimated 2.85%, previously which was 2.35%.