FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT

06 Oct

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 06 October 2022

/ CSFX Analytics

JAPAN NO PACT WITH LANKA ON DEBT RESTRUCTURING

Asian stock markets extended recent gains on Thursday. The Shanghai Composite is down 0.55% at 3,024.39. Overall, the Singapore MSCI is up 0.47% at 286.40. Over in Hong Kong, the Hang Seng Index is up 0.16% at 18,112.00. In Japan, the Nikkei 225 is up 1.03% at 27,360.00, while the Topix index is up 0.76% at 1925.50. South Korea’s Kospi is up 1.37% at 2,244.73. Australia S&P/ASX 200 up 0.03% at 6817.50.

Top News of the Day:

Japan has not yet reached an agreement with crisis-hit Sri Lanka to co-chair a summit on negotiations with creditor nations, a government official with direct knowledge of the matter told Reuters, brushing aside a statement from Colombo on Thursday.

Japan is ready to fully support the Indian Ocean Island nation in its credit restructuring, the official said on condition of anonymity, as the issue is a sensitive one.

Market Summary as per 05/10/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded down 1.21% at 12,517.18, CAC 40 futures down 0.90% at 5985.47 and the UK 100 futures contract in the U.K. down 0.48% at 7,052.63.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.14% at 30273.88. The S&P 500 down 0.20% at 3783.29 and the Nasdaq 100 down 0.08% at 11573.18, NYSE closes down 0.40% at 14262.03.

Top Market News Today:

In the Forex market, GBPUSD up 0.13% at 1.1339. The USDJPY down 0.09% at 144.522. The USDCHF down 0.28% at 0.9805. EURUSD up 0.39% at 0.9917, EUR/GBP up 0.30% at 0.8747. The USD/CNY flat at 7.1148 at the time of writing.

In the Commodity market U.S. Gold futures up 0.39% at $1,722.46. Elsewhere, Silver futures up 0.54% at $20.756 per ounce, Platinum up 0.91% at $925.31 per ounce, and Palladium up 0.44% at $2267.50.

Crude Oil down on Thursday; Brent Crude Oil down 0.28% at $93.35 per barrel while U.S. West Texas Intermediate (CLc1) down 0.36% at $87.06.

In the Cryptocurrency Markets, Bitcoin at 20355.00 up 1.07%, Ethereum up 1.97% at 1373.00, Litecoin at 54.53 down 0.16%, at the time of writing.

Top Market Segment to Watch Out Today:

Toyota Motor Corp.: Toyota Motor (NYSE:TM) Corp said it had found a fix for a defect that caused a recall of its first electric vehicle (EV), bZ4X, months after the recall froze deliveries of the car and hurt the automaker’s nascent efforts to electrify its range.

Toyota, a laggard in the EV market, recalled 2,700 bZ4X sports utility crossovers globally in June, less than two months after the model was launched, because of a risk of wheels coming loose.

Economic News:

US: The U.S. services industry slowed modestly in September, while employment surged and a measure of prices paid by businesses for inputs fell to more than a 1-1/2-year low, suggesting underlying strength in the economy despite rising interest rates.

The Institute for Supply Management (ISM) said on Wednesday its non-manufacturing PMI dipped to a reading on 56.7 last month from 56.9 in August. Economists polled by Reuters had forecast the non-manufacturing PMI falling to 56.0.

A reading above 50 indicates expansion in the services sector, which accounts for more than two-thirds of U.S. economic activity. The economy is slowing as the Federal Reserve aggressively tightens monetary policy to quell inflation.

The U.S. central bank has hiked its policy rate from the near-zero level at the beginning of this year to the current range of 3.00% to 3.25%, and last month signalled more large increases were on the way this year.

Higher borrowing costs are weighing on the housing market and starting to strain the manufacturing industry. The ISM reported on Monday that its manufacturing PMI dropped in September to the lowest reading since May 2020.

Euro Zone: The European Union will explore ways to raise funding as a bloc to accelerate its plans to cut off from Russian gas despite continuing reservations from some of its member states.

The European Commission president, Ursula von der Leyen, told leaders Wednesday in a letter that the EU’s executive arm will look into other “sources of funding to enhance the firepower of REPowerEU,” the bloc’s initiative to reduce its dependence on energy from Moscow.

Several European countries, including Germany and the Netherlands, have been deeply sceptical about the need to raise fresh EU funds, but her call to consider EU-level funding reflects growing concerns about the massive scale of spending that will be needed to get the bloc through the next few winters without Russian gas.

It’s not clear yet whether the bloc will consider issuing new joint debt or look to other ways to raise funds.

Top Economic Releases Today:

U.K. Construction PMI (Sep) today at 04:30 this time estimated 48.00, previously which was 49.20.
00 this time estimated -0.4%, previously which was 0.3%.
U.S. Initial Jobless Claims today at 08:30 this time estimated 203K, previously which was 193K.

CANADA Ivey PMI (Sep) today at 10:00 previously which was 60.90.
JAPAN Household Spending (YoY) (Aug) today at 19:30 this time estimated 6.7%, previously which was 3.4%.