FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT

07 Oct

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 07 October 2022

/ CSFX Analytics

CHINA COMMODITY SHIPPING DEMAND TO IMPROVE FROM Q4

Asian stock markets up on Friday. 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:

China’s demand for commodity shipments is expected to improve in the fourth quarter as investments in infrastructure projects and steel production pick up pace, while Beijing ramps up oil products exports, senior shipping executives said.

The world’s top commodities buyer reduced energy and metals imports in the first half this year as COVID-19 restrictions ravaged its economy although Beijing has pledged to support growth through stimulus measures.

Market Summary as per 06/10/2022:

European equities Thursday 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 Friday; 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:

CRUDE OIL: Oil prices kept to a three-week high on Thursday, but appeared to have paused a recent rally as markets awaited more clarity on how the OPEC+ intends to carry out a massive supply cut, as well as a U.S. response to the move.

London-traded Brent oil futures fell 0.2% to around $93.59 a barrel, while West Texas Intermediate crude futures rose 0.2% to $87.95 a barrel. Both contracts rallied about 2% on Wednesday and are up sharply this week.

Economic News:

US: The U.S. Federal Reserve’s fight against inflation is likely “still in early days,” Atlanta Fed president Raphael Bostic said Wednesday, becoming the latest U.S. central banker to caution against the likelihood rates would be reduced in response to any weakening of the economy.

Despite “glimmers of hope” in recent data, Bostic said “the overarching message I’m drawing…is that we are still decidedly in the inflationary woods, not out of them,” with the Fed’s target funds rate needing to rise to around 4.5% by the end of the year.

In prepared remarks to the North-western (NASDAQ:NWE) University Institute for Policy Research, Bostic said he would like to cap rates at that point long enough to assess where the economy is heading.

But that does not imply rate cuts would follow. The Fed’s singular focus is that inflation head decisively back to the central bank’s 2% target.

Euro Zone: Prime Minister Liz Truss sought on Wednesday to restore her authority following a chaotic first month in power, urging her Conservative Party to trust her to secure economic growth and steer Britain through “stormy days” ahead.

Addressing Conservative lawmakers and members at an annual conference beset by internal bickering and policy confusion, Truss looked to reassure her party, the public and investors that her plan was the right way to transform Britain.

The conference, once expected to be Truss’s crowning glory after she became prime minister on Sept. 6, had turned into a personal nightmare after the announcement of a new economic plan triggered a crisis of confidence among investors.

Her attempt to cut 45 billion pounds ($51 billion) of taxes and hike government borrowing sent markets into a tailspin and borrowing costs sharply higher.

Forced to reverse the most divisive policy – the scrapping of the top rate of tax – Truss was then openly challenged by lawmakers and ministers over other policy areas, in stark contrast to the sense of discipline on display last week at a conference of the main opposition Labour Party.

Top Economic Releases Today:

U.K. House Price Index (MoM) (Sep) today at 02:00 previously which was 0.4%.
00 this time estimated -0.5%, previously which was -0.3%.
U.S. Nonfarm Payrolls (Sep) today at 08:30 this time estimated 250K, previously which was 315K.

CANADA Employment Change (Sep) today at 8:30 this time estimated 20.00K, previously which was -39.70K.
RUSSIA CPI (MoM) (Sep) today at 12:00 this time estimated -0.1%, previously which was -0.5%.