FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT

13 Oct

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 13 October 2022

/ CSFX Analytics

Biden acknowledges recession risk as IMF slashes forecasts

Asia Pacific markets retreated for a fourth consecutive session on Thursday. The Shanghai Composite is flat at 3,026.74. Overall, the Singapore MSCI is down 1.70% at 273.95. Over in Hong Kong, the Hang Seng Index is down 1.20% at 16,512.00. In Japan, the Nikkei 225 is down 0.57% at 26,240.00, while the Topix index is down 0.67% at 1853.50. South Korea’s Kospi is down 1.37% at 2,172.22. Australia S&P/ASX 200 down 0.07% at 6642.60.

Top News of the Day:

U.S. President Joe Biden, for the first time, acknowledged the risk that the U.S. economy will fall into recession, on the same day that the International Monetary Fund slashed its growth forecasts for the country (and the rest of the world) and the NASDAQ fell back into a bear market.

Market Summary as per 12/10/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded down 0.39% at 12,172.26, CAC 40 futures down 0.25% at 5818.48 and the UK 100 futures contract in the U.K. down 0.86% at 6826.16.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.10% at 29210.86. The S&P 500 down 0.33% at 3577.04 and the Nasdaq 100 down 0.05% at 10785.62, NYSE closes down 0.45% at 13546.79.

Top Market News Today:

In the Forex market, GBPUSD down 0.13% at 1.1081. The USDJPY down 0.07% at 146.795. The USDCHF up 0.04% at 0.9975. EURUSD up 0.04% at 0.9706, EUR/GBP up 0.27% at 0.8762. The USD/CNY up 0.19% at 7.1859 at the time of writing.

In the Commodity market U.S. Gold futures down 0.24% at $1,668.98. Elsewhere, Silver futures down 0.25% at $18.950 per ounce, Platinum up 0.24% at $879.08 per ounce, and Palladium up 0.44% at $2135.41.

Crude Oil down on Thursday; Brent Crude Oil down 0.01% at $92.36 per barrel while U.S. West Texas Intermediate (CLc1) down 0.03% at $85.93.

In the Cryptocurrency Markets, Bitcoin at 19086.00 down 0.37%, Ethereum down 0.59% at 1286.90, Litecoin at 51.87 down 0.71%, at the time of writing.

Top Market Segment to Watch Out Today:

Samsung Electronics Co.: Samsung Electronics (OTC:SSNLF) Co has been granted a one-year exemption from new U.S. restrictions that block exports of advanced chips and related equipment to China, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

Economic News:

US: The U.S. is scrambling to tackle unintended consequences of its new export curbs on China’s chip industry that could inadvertently harm the semiconductor supply chain, people familiar with the matter said.

Hours before a new restriction took effect, South Korean memory chipmaker SK Hynix Inc said it got authorization from the United States to receive goods for its chip production facilities in China without additional licensing imposed by the new rules.

Separately, Taiwan Semiconductor Manufacturing Co secured a one-year license to continue ordering American chipmaking equipment for its expansion in China, Nikkei Asia reported on Thursday.

The U.S. government assured TSMC that it will be able to ship the equipment to a manufacturing facility in the Chinese city of Nanjing, Nikkei report said, citing people familiar with the matter. TSMC did not immediately respond to Reuters’ request for comment.

Euro Zone: More than 5 billion euros ($4.85 billion) of European Union funds were misspent last year, the bloc’s auditors said on Thursday, as national authorities often made mistakes in allocating the money while cases of suspect fraud increased.

In its annual report, the European Court of Auditors (ECA), which is responsible for assessing the EU budget, estimated that an average of 3% of last year’s 181.5-billion-euro spending was irregular, up from 2.7% the previous year.

“The level of error for high-risk expenditure was pervasive,” auditors said in the report, issuing an “adverse opinion” on the 27-nation bloc’s spending last year.

Auditors pointed out that errors were mostly caused by national authorities’ having trouble with applying complex rules and criteria for the selection of funds’ beneficiaries. That did not represent a measure of fraud or waste of funds, they said.

However, they identified 15 cases of potential fraud, up from six in the previous year’s assessment.

Top Economic Releases Today:

U.S. Crude Oil Inventories today at 11:00 this time estimated 1.750M, previously which was -1.356M.
30 this time estimated 8.10%, previously which was 8.30%.
GERMANY CPI (YoY) (Sep) today at 02:00 this time estimated 10.00%, previously which was 7.90%.

CHINA Trade Balance (USD) (Sep) today at 23:00 this time estimated 81.00B, previously which was 79.39B.
RUSSIA Central Bank reserves (USD) today at 9:00 previously which was 540.70B.