FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 11 November 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 11 November 2022

Technical Analysis

WALL STREET SOARS

Asian stock markets had a good start but closed in red on Thursday. The  Shanghai Composite is down 0.39% at 3036.13 Overall, the Singapore MSCI is up 2.37% at 277.65. The Shanghai Composite is down 0.39% at 3036.13 Overall, the Singapore MSCI is up 2.37% at 284.43. Over in Hong Kong, the Hang Seng Index is down 1.70% at 16,081.04. In Japan, the Nikkei 225 is down 0.98% at 27,446.10, while the Topix index is down 0.66% at 1936.66. South Korea’s Kospi is down 0.91% at 2,402.23. Australia S&P/ASX 200 down 0.50% at 6964.00.

Top News of the Day:

Wall Street’s main indexes rallied with the tech-heavy Nasdaq leading gains, after data showed consumer prices rose less than expected in October, spurring hopes that the Fed might scale down the size of its future rate hikes.

The benchmark S&P 500 and the Nasdaq were set for their biggest percentage gain since April 2020 as the data pointed to strongest signs, yet that inflation was starting to subside, with the annual number below 8% for the first time in eight months.

“It’s very good news for future Fed policy and indicates that what the Fed has been doing has been appropriate,” said Mike Zigmont, head of trading and research at Harvest Volatility Management. “It takes off the table the risk that the Fed will have to overtighten and break the economy.”

The inflation data prompted traders to adjust their rate hike bets, with odds of a 50-basis point rate hike in December jumping to more than 80% from 52% before the data was released.

Market Summary as per 10/11/2022:

European equities Thursday closing. The DAX futures contract in Germany traded up 3.51% at 14146.09, CAC 40 futures up 1.96% at 6556.83. and the UK 100 futures contract in the U.K. up 1.08% at 7375.34.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 3.70% at 33715.37. The S&P 500 up 5.45% at 3953.19 and the Nasdaq 100 up 7.35% at 11114.15, NYSE closes up 4.43% at 15234.72.

Top Market News Today:

In the Forex market, GBPUSD down 0.37% at 1.1669. The USDJPY up 0.85% at 142.15 The USDCHF up 0.34 at 0.9669. EURUSD down 0.24% at 1.0184,EUR/GBP up 0.14% at 0.8724. The USD/CNY down 0.14% at 7.2488 at the time of writing.

In the Commodity market U.S. Gold futures up at 0.07% $1,754.95. Elsewhere, Silver futures up 0.1% at $21.705 per ounce, Platinum up 0.14% at $1050.95per ounce, and Palladium down 1.03% at $1943.28.

Brent Crude Oil up 0.27% at $93.92 per barrel.

In the Cryptocurrency Markets, Bitcoin at 16968.60 down 3.32%, Ethereum down 4.64% at 1235.22, Litecoin at 59.84 down 0.89%, at the time of writing.

Top Market Segment to Watch Out Today:

Telecom Italia (TIM): shares rose more than 5% to hit a four-month high  after the former phone monopoly flagged some improvement in its battered domestic business despite tough operating conditions.

Economic News: US:

The Biden administration said that it plans to announce by June 30 how it intends to allocate more than $42 billion in broadband infrastructure grants to states and territories.

The distribution formula from the Commerce Department’s National Telecommunications and Information Administration (NTIA) agency is contingent on ensuring accurate maps of U.S. locations without access to high-speed broadband internet. The Federal Communications Commission (FCC) separately said it will unveil a pre-production draft of new broadband maps on Thursday to improve provider data by incorporating challenges.

Individuals or others can search for their addresses and make challenges if they do not believe they accurately reflect available broadband internet services. State or tribal governments can make bulk challenges.

The infrastructure law authors said last year 19 million Americans lack access to high-speed internet.

The NTIA says challengers have their “best opportunity” to make challenges by Jan. 13 “in time for the FCC to include corrections in the final version of the map that will be used to allocate Internet for All funding in the summer of 2023.”

The $1 trillion November 2021 infrastructure bill includes $65 billion in total to boost access to the internet. There is a separate $10 billion COVID-19 aid program administered by the U.S. Treasury that also aims to boost broadband internet access in underserved communities.

Euro Zone:

Euro zone government bond yields plunged after U.S. inflation cooled off in October, supporting the view that the Federal Reserve might slow down its tightening path.

The closely watched core consumer price index (CPI), which excludes the volatile food and energy components, rose 0.3% last month after gaining 0.6% in September. Economists expected core CPI to gain 0.6%.

Germany’s 10-year government bond yield fell 19 basis points (bps) to 1.98%, its biggest daily drop since Oct. 3.

It rose 20 bps last week after dropping 35 bps the week ending on Oct. 28, in its biggest weekly fall since 2011.

The 2-year yield dropped 17.5 bps to 1.946%. It hit its highest level since December 2008 on Tuesday at 2.25%.

“Today’s U.S. inflation figures confirm suggestions that the peak may be disappearing down the rear-view mirror,” said Neil Shah, executive director at Edison Group.

“At the same time, stubborn core inflation persists, and continuing reports of a tight labour market will fuel wage inflation, pointing to a longer-term and more entrenched inflationary challenge,” he added.

Italy’s 10-year government bond yield was down 27 bps at 4.008%, its lowest since Oct. 27.

Top Economic Releases Today:

 1. USD: Federal Budget Balance (Oct)- Forecast -90.0B, Previous -430.0B at 00:30.

2. USD: FOMC Member George Speaks at 00:00.

3.GBP: GDP (QoQ) (Q3) Forecast -0.5%, Previous 0.2% at 12:30.

4.GBP: Monthly GDP 3M/3M Change – Previous -3% at 12:30

5. EUR: German CPI (YoY) (Oct)- Forecast 10.4%, Previous 10.4% at 12:30.

TECHNICAL SUMMARY

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 16838, TAKE PROFI AT 1.18181, SL AT 16416

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 1.01581, TAKE PROFIT AT 1.02691, SL AT 1.01809

AUDUSD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 0.66197, TAKEPROFIT AT 0.67277, SL AT 0.65515

USDJPY TECHNICAL ANALYSIS

TRADE SUGGESTION-  SELL AT 141.750, TAKE PROFIT AT 140.163, SL AT 142.636

NIKKIE TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 28220, TAKE PROFIT AT 28438, SL AT 28054

BRENT CRUDE OIL TECHNICAL ANAYSIS

TRADE SUGGESTIONSELL AT 95.28, TAKE PROFIT AT 92.89, SL AT 96.46

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 1752.28, TAKE PROFIT AT 1776.84, SL AT 1745.32

BITCOIN TECHNICAL ANALYSIS

TRADE SUGGESTIONSELL AT 16477.67, TAKE PROFIT AT 15610.28, SL AT 1800.88

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