FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT

05 Oct

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 05 October 2022

/ CSFX Analytics

Dollar steadies as investors heed hawkish

Asian Pacific stocks up on Wednesday. The Shanghai Composite is down 0.55% at 3,024.39. Overall, the Singapore MSCI is up 1.21% at 285.30. Over in Hong Kong, the Hang Seng Index is up 5.90% at 18,089.00. In Japan, the Nikkei 225 is up 0.74% at 27,110.00, while the Topix index is up 0.53% at 1913.50. South Korea’s Kospi is up 0.30% at 2,215.97. Australia S&P/ASX 200 up 1.74% at 6815.70.

Top News of the Day:

The dollar steadied on Wednesday after a sharp rate rise in New Zealand poured cold water over hopes for a pause or slowdown in the U.S. Federal Reserve’s intentions for aggressive hikes.

The dollar had suffered its heaviest setback in more than two years on Tuesday but was back on the front foot after the Reserve Bank of New Zealand (RBNZ) delivered a fifth consecutive 50 basis point (bp) hike.

Market Summary as per 04/10/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded up 3.78% at 12,670.48, CAC 40 futures up 4.24% at 6039.69 and the UK 100 futures contract in the U.K. up 2.57% at 7,086.47.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 2.80% at 30316.33. The S&P 500 up 3.06% at 3790.92 and the Nasdaq 100 up 3.14% at 11582.54, NYSE closes up 3.35% at 14319.49.

Top Market News Today:

In the Forex market, GBPUSD down 0.23% at 1.1446. The USDJPY flat at 144.089. The USDCHF up 0.07% at 0.9794. EURUSD down 0.12% at 0.9973, EUR/GBP up 0.17% at 0.8614. The USD/CNY up 0.02% at 7.1148 at the time of writing.

In the Commodity market U.S. Gold futures down 0.29% at $1,720.25. Elsewhere, Silver futures down 1.15% at $20.790 per ounce, Platinum down 1.18% at $922.92 per ounce, and Palladium down 0.84% at $2296.50.

Crude Oil mix on Wednesday; Brent Crude Oil down 0.03% at $91.69 per barrel while U.S. West Texas Intermediate (CLc1) up 0.01% at $85.71.

In the Cryptocurrency Markets, Bitcoin at 20190.00 down 0.47%, Ethereum down 0.22% at 1350.00, Litecoin at 54.93 down 0.74%, at the time of writing.

Top Market Segment to Watch Out Today:

Twitter Inc.: Billionaire Elon Musk is planning to go ahead with his original $44-billion offer to take Twitter Inc (NYSE:TWTR) private, sources familiar with the matter told Reuters, potentially ending the bitter feud between the Tesla (NASDAQ:TSLA) chief and the social media company.

Economic News:

US: U.S. job openings fell by the most in nearly 2-1/2 years in August, suggesting that the labor market was starting to cool as the economy grapples with higher interest rates aimed at dampening demand and taming inflation.

Despite the fifth month of decreases in job openings this year reported by the Labor Department in its Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday, vacancies remained above 10 million for the 14th straight month.

While there were 1.7 job openings for every unemployed person in August, down from two in July, this closely watched measure of supply-demand balance in the labor market remained above its historical average. Layoffs also stayed low, signs of a still-tight labor market, which likely keep the Federal Reserve on its aggressive monetary policy tightening path.

Job openings dropped 1.1 million to 10.1 million on the last day of August, the lowest level since mid-2021. August’s decline was the largest since April 2020, when the economy was reeling from the first wave of the COVID-19 pandemic. Economists polled by Reuters had forecast 10.775 million vacancies.

Euro Zone: Euro zone producer prices jumped slightly more than expected in August, data showed on Tuesday, driven mainly by continuously rising energy costs, but price increases excluding that most volatile component decelerated.

The European Union’s statistics office Eurostat said prices at factory gates in the 19 countries sharing the euro rose 5.0% month-on-month for a 43.3% year-on-year surge.

Economists polled by Reuters had expected a 4.9% monthly rise and a 43.1% annual increase.

Rocketing energy prices were the main driver of the overall index, rising 11.8% on the month and 116.8% year-on-year.

Without energy, producer prices rose only 0.3% month-on-month and 14.5% year-on-year in August, decelerating from 0.6% monthly and 15.1% annual rises the month before.

Top Economic Releases Today:

U.K. Services PMI (Sep) today at 04:30 this time estimated 49.20, previously which was 50.90.
30 this time estimated -0.5%, previously which was -6.6%.
U.S. Crude Oil Inventories today at 10:30 this time estimated 2.052M, previously which was -0.215M.

GERMANY Buba Beermann Speaks today at 05:00.
EURO ZONE S&P Global Composite PMI (Sep) today at 04:00 this time estimated 48.20, previously which was 48.90.