Fundamental and Technical Analysis Report

15 Sep

Fundamental and Technical Analysis Report – 15 September 2022

/ CSFX Analytics

European Stock Futures Slip Lower due to Fragile Sentiment

Asian Pacific steadied from recent losses on Thursday. The Shanghai Composite is down 1.36% at 3,193.46. Overall, the Singapore MSCI is up 0.05% at 293.40. Over in Hong Kong, the Hang Seng Index is up 0.36% at 18,875.00. In Japan, the Nikkei 225 is up 0.11% at 27,680.00, while the Topix index is up 0.29% at 1933.00. South Korea’s Kospi is down 0.40% at 2,401.83. Australia S&P/ASX 200 up 0.21% at 6842.90.

Top News of the Day:

European stock markets are expected to open largely marginally lower Thursday, stabilizing after losses earlier in the week, but sentiment remains fragile as investors fret about the impact of tightening monetary policy as economic growth slows.

European stocks will receive the benefit of modest gains on Wall Street late Wednesday and in Asia overnight, but a meaningful near-term recovery is unlikely.

Market Summary as per 14/09/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded down 1.22% at 13,028.00, CAC 40 futures down 0.37% at 6222.42 and the UK 100 futures contract in the U.K. down 1.47% at 7,277.31.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.10% at 31135.10. The S&P 500 up 0.34% at 3946.02 and the Nasdaq 100 up 0.84% at 12134.40, NYSE closes up 0.15% at 14843.21.

Top Market News Today:

In the Forex market, GBPUSD down 0.21% at 1.1516. The USDJPY up 0.37% at 143.665. The USDCHF up 0.18% at 0.9633. EURUSD down 0.18% at 0.9962, EUR/GBP up 0.06% at 0.8650. The USD/CNY up 0.12% at 6.9701 at the time of writing.

In the Commodity market U.S. Gold futures down 0.57% at $1,687.22. Elsewhere, Silver futures down 1.73% at $19.348 per ounce, Platinum down 0.77% at $898.00 per ounce, and Palladium down 1.75% at $2124.72.

Crude Oil down on Thursday; Brent Crude Oil down 0.56% at $93.94 per barrel while U.S. West Texas Intermediate (CLc1) down 0.42% at $88.01.

In the Cryptocurrency Markets, Bitcoin at 20070.00 up 0.73%, Ethereum down 1.06% at 1621.30, Litecoin at 59.98 down 0.27%, at the time of writing.

Top Market Segment to Watch Out Today:

Apple Inc.: Apple Inc. recently overtook Tesla (NASDAQ:TSLA) as the stock with the most short interest in the U.S., according to data from S3 Partners.

As of today, Apple has short interest totalling $18.44 billion, versus $17.44 billion for Tesla. While the total dollar value for Apple is higher, the short interest as a percentage of the float is just 0.70% for Apple, while it stands at 1.8% for Tesla.

Economic News:

US: Factory gate prices stayed strong in August, corroborating a picture of unbroken and broadening inflationary pressure in the U.S. economy.

The producer price index dipped 0.1% on the month from July, thanks to cheaper gasoline prices – down nearly 13% on the month – reducing freight costs. But less volatile elements of the index rose, pushing the ‘core’ price index up 0.4%, more than expected. Excluding food, energy and transportation, prices rose 0.2%.

The numbers reflect the same trend as those seen in Tuesday’s consumer prices report, which also showed headline inflation easing, despite signs of prices broadly rising throughout the economy.

Corporate profit margins, which have been a key driver of inflation in the last two years, also stayed broadly solid. The Bureau of Labor Statistics said the index for final demand services rose 0.4% on the month, its fourth straight monthly rise, with 60% of that due to a 0.8% increase in margins.

Eurozone: The European Union’s executive plans to raise more than 140 billion euros ($140 billion) to shield consumers from soaring energy prices by skimming off revenues from low-cost electricity generators and making fossil fuel firms share windfall profits.

The European Commission published the proposals on Wednesday as the 27-member European Union grapples with an energy crisis fuelled by Russia’s invasion of Ukraine.

Governments across Europe have already ploughed hundreds of billions of euros into tax cuts, handouts and subsidies to tackle a crisis that is driving up inflation, forcing industries to shut production and hiking bills ahead of winter.

“In these times, profits must be shared and channelled to those who need it most,” European Commission President Ursula von der Leyen told the EU Parliament in Strasbourg, adding that the plans should raise more than 140 billion euros for member states to rechannelled into helping businesses and retail consumers.

Top Economic Releases Today:

EURO ZONE Trade Balance (Jul) today at 05:00 this time estimated -20.00B, previously which was -24.60B.
U.S. Initial Jobless Claims today at 08:30 this time estimated 226K, previously which was 222K.
CHINA Industrial Production (YoY) (Aug) today at 22:00 this time estimated 3.80%, previously which was 3.80%.
RUSSIA Central Bank reserves (USD) today at 09:00 previously which was 561.90B.
U.S. Retail Sales (MoM) (Aug) today at 8:30 this time estimated 0.20%, previously which was 0.00%.