FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 14 November 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 14 November 2022

Technical Analysis

CHINESE PROPERTY SHARE INCREASE

Asian stock market ended on positive note, closed in green on Friday. The Shanghai Composite is up 1.69% at 3087.29 Overall, the Singapore MSCI is up 4.25% at 289.60. Over in Hong Kong, the Hang Seng Index is up 7.74% at 17,325.66. In Japan, the Nikkei 225 is up 2.98% at 28263.57, while the Topix index is up 2.12% at 1977.76. South Korea’s Kospi is up 3.37% at 2,483.16. Australia S&P/ASX 200 up 2.79% at 7158.00.

Top News of the Day:

Chinese property stocks soared on Monday as the market cheered a new aggressive financing package outlined by Chinese regulators to shore up the liquidity of its embattled property sector, with the shares of many major companies surging over 14%.

Large property developers Country Garden, Longford Group, CIFI Holdings and Greentown China all jumped close to 15% at market open.

Two sources told Reuters a notice to financial institutions from the People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) outlined 16 steps to support the industry, including loan repayment extensions, in a major push to ease the deep liquidity crunch which has plagued the property sector since mid-2020.

Market Summary as per 11/11/2022:

European equities Friday closing. The DAX futures contract in Germany traded up 0.56% at 14224.86, CAC 40 futures up 0.58% at 6594.62. and the UK 100 futures contract in the U.K. down 0.78% at 7318.04.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed 0.10% at 33747.86. The S&P 500 up 0.92% at 3992.93 and the Nasdaq 100 also up 1.85% at 11848.00, NYSE closes 0.77% at 15352.69.

Top Market News Today:

In the Forex market, GBPUSD down 0.49% at 1.1778. The USDJPY up 0.26% at 139.16 The USDCHF up 0.29 at 0.9445. EURUSD down 0.25% at 1.0326. EUR/GBP up 0.24% at 0.8765. The USD/CNY down 0.48% at 7.0738 at the time of writing.

In the Commodity market U.S. Gold futures down at 0.48% $1,762.78. Elsewhere, Silver futures down 0.79% at $21.538 per ounce, Platinum down 0.39% at $1039.55per ounce, and Palladium down 0.72% at $2016.53.

Brent Crude Oil up 0.49% at $96.22 per barrel.

In the Cryptocurrency Markets, Bitcoin at 16045.50 down 1.57%, Ethereum down 2.89% at 1184.13, Litecoin at 56.05 down 2.15%, at the time of writing.

Top Market Segment to Watch Out Today:

Nvidia: The chip company (ticker: NVDA) is set to report third-quarter earnings on Wednesday, and the consensus call among analysts tracked by FactSet is that profits will be 71 cents a share from revenue of $5.8 billion. October-quarter sales in its data-centre segment, the most important business for the roughly 30-year-old company, are expected to fall by a percentage in the single digits from the prior quarter. A slowdown in demand for chips in China has been a risk for the company.

Economic News:

U.S. Treasury Secretary Janet Yellen said the United States will impose new sanctions on a transnational network of individuals and companies that have been working to procure military technologies for Russia’s war effort in Ukraine.

Yellen told reporters on the side-lines of the G20 summit in Bali the sanctions would target 14 individuals and 28 entities, including financial facilitators, but she declined to provide details on where they were located. She said the announcement was scheduled for later Monday.

“This is part of our larger effort to disrupt Russia’s war effort and deny equipment it needs through sanctions and export controls,” Yellen told reporters.

She declined to provide details on which technologies the sanctions would target to cut off Russian purchases.

The U.S. Treasury has sanctioned major military industrial firms in Russia and the Commerce Department has cut off exports of American-made components and U.S. technologies that have been used in some of Russia’s military hardware. Yellen said these were already having an impact on the battlefield in Ukraine.

Russia has managed to procure drones from Iran that have been used to attack cities and power infrastructure in Ukraine. Iranian military entities and industries are already under heavy U.S. sanctions over Tehran’s nuclear development program, and it was unclear whether any of the sanctions were related to those drone munitions purchases.

Yellen also said that at the same time the United States would continue to support Ukraine with financial and economic aid. The Biden administration has requested an additional $4.5 billion in non-military assistance from Ukraine, and Yellen said that, once congressional approval was secured, the Treasury would immediately begin disbursing it to Ukraine.

Euro Zone:

Asking prices for British residential properties are dropping and there are signs that the fallout from the “mini-budget” bond market rout is weighing on first-time buyers, property website Rightmove said on Monday.

Asking prices for homes dropped 1.1%, or by 4,159 pounds ($4,886.41) month-on-month in the Oct. 9 – Nov. 5 period, after a 0.9% rise over the previous month, Rightmove said.

The decline – despite the “weight of financial uncertainty” – was in line with the average fall recorded in November during the pre-pandemic years of 2015-2019, it said.

But Rightmove said former prime minister Liz Truss’s growth plan, which triggered a steep rise in borrowing costs when it was announced in September, accelerated Britain’s property market slowdown.

Average two- and five-year fixed rate mortgages surpassed 6% in October for the first time since the global financial crash in 2008, according to data from website Moneyfacts.

Rates have since eased back after the announcement of Rishi Sunak as prime minister calmed financial markets.

“We’re now in another state of limbo as we wait for any surprises or help in Jeremy Hunt’s Autumn Statement on Thursday,” Tim Bannister, director of property science at Rightmove said.

Finance minister Hunt is expected to announce spending cuts and tax increases to repair Britain’s public finances and restore its credibility among investors.

“The frenzied market of the past two years has turned into a more normal market more abruptly and less smoothly than we were expecting,” Bannister said.

First-time buyer homes continued to be the most affected category, with demand down by 26% compared with a year earlier but still up 7% on the same period in 2019.

Top Economic Releases Today:

  1. USD: Fed Waller Speaks at 03:00
  2. USD: Opec Monthly Report at 17:30
  3. EUR: Industrial Production (MoM) (Sep) Forecast 2.8%, Previous 2.5% at 15:30.
  4. CHF: PPI (MoM) (Oct) Forecast 0.2%, Previous 0.2% at 13:00.
  5. CAD: Boc Gov Macklem Speaks at 19:15.

TECHNICAL ANALYSIS

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 1.18397, TAKE PROFIT AT 1.20367, SL AT 1.16715

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 1.03609, TAKE PROFIT AT 1.04806, SL AT 1.02523

USDJPY TECHNICAL ANALYSIS

TRADE SUGGESTIONSELL AT 138.779, TAKE PROFIT AT 136.724, SL AT 141.944

AUDUSD TECHNICAL ANALYSIS

TRADE SUGGESTION-  BUY AT 0.67585, TAKE PROFIT AT 0.68680, SL AT 0.66755

S&P500 INDEX TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 4001.41, TAKE PROFIT AT 4112.49, SL AT 3923.26

BRENT CRUDE OIL TECHNICAL ANALYSIS

TRADE SUGGESTION BUY AT 95.97, TAKE PROFIT AT 98.01, SL AT 93.39

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 1772.32, TAKE PROFIT AT 1792.41, SL AT 1751.31

ETHEREUM TECHNICAL ANALYSIS

TRADE SUGGESTIONSELL AT 1160.64, TAKE PROFIT AT 1046.77, SL AT 1295.98

About Author