FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT

10 Oct

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 10 October 2022

/ CSFX Analytics

Dow Futures Drop as Earnings Season Starts

Asia Pacific stocks slipped on Monday. The Shanghai Composite is down 0.84% at 2,998.08. Overall, the Singapore MSCI is down 1.56% at 281.00. Over in Hong Kong, the Hang Seng Index is down 2.81% at 17,237.00. In Japan, the Nikkei 225 is down 1.48% at 26,700.00, while the Topix index is down 1.02% at 1886.00. South Korea’s Kospi is down 0.22% at 2,232.84. Australia S&P/ASX 200 down 1.40% at 6667.80.

Top News of the Day:

U.S. stock futures were trading lower during Sunday’s evening deals, after major benchmark indices finished the week in a mixed fashion amid volatile trading conditions as investors brace for a busy week amid corporate earnings, FOMC minutes, and highly anticipated consumer price index data.

Ahead in the week, market participants will be closely monitoring speeches from Fed policymakers including Evans and Brainard as well as FOMC members Harker and Mester for further clues on the Fed’s rate hike path.

Market Summary as per 07/10/2022:

European equities Friday closing. The DAX futures contract in Germany traded down 1.59% at 12,273.00, CAC 40 futures down 1.17% at 5866.95 and the UK 100 futures contract in the U.K. down 0.09% at 6991.10.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 2.11% at 29296.80. The S&P 500 down 2.80% at 3639.67 and the Nasdaq 100 down 3.88% at 11039.47, NYSE closes down 2.05% at 13798.26.

Top Market News Today:

In the Forex market, GBPUSD down 0.25% at 1.1064. The USDJPY flat at 145.370. The USDCHF down 0.04% at 0.9941. EURUSD down 0.19% at 0.9720, EUR/GBP up 0.11% at 0.8784. The USD/CNY down 0.01% at 7.1130 at the time of writing.

In the Commodity market U.S. Gold futures down 0.47% at $1,685.76. Elsewhere, Silver futures down 2.00% at $19.710 per ounce, Platinum down 0.82% at $905.00 per ounce, and Palladium down 0.34% at $2173.50.

Crude Oil down on Monday; Brent Crude Oil down 1.38% at $96.98 per barrel while U.S. West Texas Intermediate (CLc1) down 1.43% at $90.86.

In the Cryptocurrency Markets, Bitcoin at 19340.00 down 0.33%, Ethereum down 0.47% at 1317.30, Litecoin at 53.89 up 0.22%, at the time of writing.

Top Market Segment to Watch Out Today:

BOEING: A Boeing (NYSE:BA) 737 MAX flight by MIAT Mongolian Airlines landed in Guangzhou on Monday morning, flight tracking websites showed, marking what appeared to be the first commercial flight by the model to China since the country grounded the plane in March 2019.

Chinese airlines have not returned the 737 MAX to commercial service and Boeing last month said it would begin to remarket some of the planes meant for Chinese customers.

Economic News:

US: U.S. unemployment unexpectedly fall last month, Friday figures showed, and inflation data due on Thursday is forecast to show headline inflation at a hot 8.1% year-on-year. Policymakers’ preferred core inflation is seen rising to 6.5%.

Westpac strategist Sean Callow said the data and rising yields in response was a “robust combination for the dollar.”

“It’s further evidence that the U.S. economy is not cratering,” he said. “It just feeds into the notion that the Fed is going to spend the next three weeks saying the same thing about interest rates.”

Nomura analysts said the market, and the Fed, will want to see a series of falling monthly inflation readings before expecting a definite pause in hikes from the Fed.

Climbing oil prices and geopolitical tension also provided plenty of reasons for nervousness about growth, weighing on energy-importer currencies in Europe and even on exporters such as the growth-sensitive Australian dollar.

Euro Zone: Germany’s expert commission charged with drawing up plans to ease the impact of soaring gas prices on consumers agreed on a set of proposals early on Monday, sources close to the talks said.

A draft of a paper seen by Reuters earlier showed the commission favoured the state giving households and businesses a one-off payment worth one month’s gas bill this year and a price break from next March or April.

The commission is still working on a separate scheme for big gas consumers in the industrial sector.

In a second phase, the state could subsidize 60-80% of projected gas consumption, with consumers having to pay the remainder at market prices, incentivising energy savings. The subsidized price could come in around 12-14 cents per kilowatt hour (kWh), according to the paper.

If adopted, the scheme would be paid for by a 200-billion-euro ($194 billion) relief package Chancellor Olaf Scholz’s government announced late last month to soften the impact of soaring energy prices on Europe’s largest economy.

Top Economic Releases Today:

U.K. BRC Retail Sales Monitor (YoY) (Sep) today at 19:01 this time estimated -0.40%, previously which was 0.50%.
50 this time estimated -0.47T, previously which was -0.63T.
AUSTRALIA NAB Business Confidence (Sep) today at 20:30 previously which was 10.