Fundamental and Technical Analysis Report – 16 September 2022
16 Sep 2022
Street falls down amid Fed fears and economic rumblings
Asian Pacific markets tumbled on Friday. The Shanghai Composite is down 1.45% at 3,153.54. Overall, the Singapore MSCI is down 0.68% at 291.10. Over in Hong Kong, the Hang Seng Index is down 0.25% at 18,817.00. In Japan, the Nikkei 225 is down 1.16% at 27,360.00, while the Topix index is down 0.72% at 1919.00. South Korea’s Kospi is down 1.01% at 2,377.04. Australia S&P/ASX 200 down 1.36% at 6749.50.
Top News of the Day:
Wall Street ended sharply lower on Thursday, extending its losses in late afternoon trading as a raft of economic data failed to alter the expected course of aggressive tightening by the Federal Reserve amid growing warnings of global recession.
Market Summary as per 15/09/2022:
European equities Thursday closing. The DAX futures contract in Germany traded down 0.55% at 12,956.66, CAC 40 futures down 1.04% at 6157.85 and the UK 100 futures contract in the U.K. up 0.07% at 7,282.08.
In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.56% at 30961.83. The S&P 500 down 1.13% at 3901.34 and the Nasdaq 100 down 1.71% at 11927.49, NYSE closes down 0.82% at 14722.02.
Top Market News Today:
In the Forex market, GBPUSD down 0.16% at 1.1447. The USDJPY up 0.06% at 143.536. The USDCHF up 0.23% at 0.9634. EURUSD down 0.15% at 0.9981, EUR/GBP up 0.06% at 0.8722. The USD/CNY up 0.31% at 7.016 at the time of writing.
In the Commodity market U.S. Gold futures down 0.13% at $1,662.62. Elsewhere, Silver futures down 0.69% at $19.033 per ounce, Platinum down 0.33% at $902.72 per ounce, and Palladium down 0.09% at $2132.52.
Crude Oil up on Friday; Brent Crude Oil up 0.61% at $91.21 per barrel while U.S. West Texas Intermediate (CLc1) up 0.47% at $84.93.
In the Cryptocurrency Markets, Bitcoin at 19700.00 down 0.15%, Ethereum down 1.61% at 1470.50, Litecoin at 55.92 down 0.85%, at the time of writing.
Top Market Segment to Watch Out Today:
GOLD: Gold and Copper prices moved little on Friday, and were set for steep weekly losses as growing expectations of more sharp interest rate hikes by the Federal Reserve boosted the dollar and dented metal markets.
Expectations of an at least 75 basis point rate hike by the Fed skyrocketed after U.S. inflation showed little signs of cooling in August. Signs of strength in the labor market also pointed to the Fed having enough space to keep raising rates at a fast pace.
US: Proposed rules by the U.S. Securities and Exchange Commission (SEC) to boost central clearing in Treasuries could help to shore up resiliency in the $24 trillion market and may pave the way for more trading that bypasses the large banks that have traditionally dominated the market.
The SEC’s proposed reforms, unveiled on Wednesday, are part of an effort by multiple regulators, the Treasury Department and the Federal Reserve to increase liquidity and reduce volatility in the world’s largest bond market.
In recent years the market has suffered from reduced liquidity, with trading seizing up in March 2020 when COVID-19 restrictions roiled financial markets.
The SEC proposed expanding the number of market participants that are required to centrally clear Treasuries to hedge funds, principal trading firms and some other types of leveraged accounts. The regulator also will require central clearinghouses and their members to develop rules and methods that expand clearing access to all investors.
Eurozone: The Bank of England and Britain’s new finance minister Kwasi Kwarteng will test their ability to jointly manage the economy next week, with the BoE set to raise interest rates to fight inflation and Kwarteng eyeing tax cuts which could stoke prices.
The seemingly opposing directions of monetary and fiscal policy underscore the economic challenges for Britain, which has the highest inflation rate among the world’s big rich countries but is also at risk of slipping into a recession.
New Prime Minister Liz Truss campaigned for the Conservative Party leadership with a vow to reverse the “Treasury orthodoxy” which she blames for higher taxes and slower economic growth.
Top Economic Releases Today:
- EURO ZONE CPI (YoY) (Aug) today at 05:00 this time estimated 9.10%, previously which was 9.10%.
- U.S. Michigan Consumer Sentiment (Sep) today at 10:00 this time estimated 60.00, previously which was 58.20.
- CANADA Wholesale Sales (MoM) (Jul) today at 08:30 this time estimated -0.60%, previously which was 0.10%.
- RUSSIA Interest Rate Decision (Sep) today at 06:30 previously which was 7.50%, previously which was 8.00%.
- U.K. Retail Sales (MoM) (Aug) today at 2:00 this time estimated -0.50%, previously which was 0.40%.
GBPUSD Technical Analysis
TRADE SUGGESTION- SELL AT 1.1419, TAKE PROFIT AT 1.1412 AND STOP LOSS AT 1.1424
EURUSD Technical Analysis
TRADE SUGGESTION- SELL AT 0.9992, TAKE PROFIT AT 0.9952 AND STOP LOSS AT 1.0026
EURGBP Technical Analysis
TRADE SUGGESTION- BUY AT 0.8747, TAKE PROFIT AT 0.8800 AND STOP LOSS AT 0.8694
EURJPY Technical Analysis
TRADE SUGGESTION- BUY AT 143.086, TAKE PROFIT AT 143.503 AND STOP LOSS AT 142.911
FTSE 100 Technical Analysis
TRADE SUGGESTION- SELL AT 7261.80 TAKE PROFIT AT 7231.70 AND STOP LOSS AT 7290.20
WTI CRUDE OIL Technical Analysis
TRADE SUGGESTION- SELL AT 84.99 TAKE PROFIT AT 84.71 AND STOP LOSS AT 85.32
GOLD Technical Analysis
TRADE SUGGESTION- SELL AT 1657.00, TAKE PROFIT AT 1650.00 AND STOP AT 1661.16
BITCOIN Technical Analysis
TRADE SUGGESTION- SELL AT 19703.00 TAKE PROFIT AT 18951.56 AND STOP AT 20402.95