FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT

04 Nov

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 04 November 2022

/ CSFX Analytics

Gold Heads for Weekly Loss

Asian equities rose on Friday. The Shanghai Composite is up 2.09% at 3,060.39. Overall, the Singapore MSCI is up 0.29% at 276.35. Over in Hong Kong, the Hang Seng Index is up 5.87% at 16,222.00. In Japan, the Nikkei 225 is down 2.03% at 27,080.00, while the Topix index is down 1.45% at 1908.00. South Korea’s Kospi is up 0.48% at 2,340.31. Australia S&P/ASX 200 up 0.34% at 6881.40.

Top News of the Day:

Still, rising interest rates and strength in the U.S. dollar are widely expected to keep metal markets subdued in the coming months. Gold, which is more sensitive than most metals to interest rates, was set to lose about 1% this week after the Fed hiked rates and signalled more monetary tightening.

Interest rate hikes by the Fed caused steep losses in gold this year, as the opportunity cost of holding the yellow metal increased.

Market Summary as per 03/11/2022:

European equities Thursday closing. The DAX futures contract in Germany traded down 0.95% at 13,130.19, CAC 40 futures down 0.54% at 6243.29 and the UK 100 futures contract in the U.K. up 0.62% at 7188.63.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.46% at 32001.26. The S&P 500 down 1.06% at 3719.88 and the Nasdaq 100 down 1.98% at 10690.60, NYSE closes down 0.29% at 14455.67.

Top Market News Today:

In the Forex market, GBPUSD up 0.67% at 1.1231. The USDJPY down 0.25% at 147.883. The USDCHF down 0.37% at 1.0088. EURUSD up 0.41% at 0.9785, EUR/GBP down 0.28% at 0.8712. The USD/CNY down 0.76 at 7.2444 at the time of writing.

In the Commodity market U.S. Gold futures up 1.02% at $1,646.08. Elsewhere, Silver futures up 1.34% at $19.713 per ounce, Platinum up 1.15% at $925.50 per ounce, and Palladium up 1.58% at $1831.50.

Crude Oil up on Friday; Brent Crude Oil up 1.52% at $95.95 per barrel while U.S. West Texas Intermediate (CLc1) up 1.79% at $88.86.

In the Cryptocurrency Markets, Bitcoin at 20355.00 up 0.35%, Ethereum up 1.33% at 1551.40, Litecoin at 63.71 up 3.02%, at the time of writing.

Top Market Segment to Watch Out Today:

TWITTER: Twitter will tell employees by email on Friday about whether they have been laid off, temporarily closing its offices and preventing staff access, following a week of uncertainty about the company’s future under new owner Elon Musk.

Economic News:

US: U.S. employers likely hired the fewest workers in nearly two years in October and increased wages at a moderate pace, suggesting some loosening in labor market conditions, which would allow the Federal Reserve to shift towards smaller interest rates increases starting in December.

The Labor Department’s closely watched employment report on Friday is also expected to show unemployment ticking up to 3.6% from 3.5% in September. The Fed on Wednesday delivered another 75-basis-point interest rate hike and said its fight against inflation would require borrowing costs to rise further.

But the central bank signalled it may be nearing an inflection point in what has become the fastest tightening of monetary policy in 40 years.

Nonfarm payrolls likely increased by 200,000 jobs last month after rising 263,000 in September, according to a Reuters survey of economists. That would be the smallest gain since December 2020, when payrolls declined under an onslaught of COVID-19 infections. Estimates ranged from 120,000 to 300,000.

Euro Zone: Britain’s government is considering cutting the tax-free allowance for dividend income, Bloomberg reported on Thursday, before a Nov. 17 budget.

The report, citing two officials familiar with the matter, added that finance minister Jeremy Hunt was looking at cutting the amount shareholders can earn in dividends before they begin paying tax from the current level of 2,000 pounds ($2,235).

“All options are under consideration,” said a government source when asked about the report.

Hunt is also looking at increasing the headline rate of capital gains tax (CGT), The Telegraph reported later on Thursday.

The finance minister is reviewing changes to the headline rate, reliefs and allowances on CGT while also considering hitting savers with an increase in dividend taxes, the newspaper said.

Broad changes to CGT, including to the headline rate, are being considered, Telegraph said, citing treasury sources, but they cautioned that much can change before Nov. 17.

Top Economic Releases Today:

GERMANY Factory Orders (MoM) (Sep) today at 03:00 this time estimated -0.5%, previously which was -2.4%.
30 this time estimated 10.00K, previously which was 21.10K.
U.S. Nonfarm Payrolls (Oct) today at 08:30 this time estimated 200K, previously which was 263K.

4. U.K. Construction PMI (Oct) today at 05:30 this time estimated 50.50, previously which was 52.30.

5. EURO ZONE Services PMI (Oct) today at 05:00 this time estimated 48.20, previously which was 48.20.