Fundamental and Technical Analysis Report – 20 September 2022

20 Sep 2022

RUSSIA SURGING OIL EXPORT TO CHINA

Asian Pacific recovered from recent losses on Tuesday. The Shanghai Composite is up 0.46% at 3,129.86. Overall, the Singapore MSCI is up 1.28% at 292.90. Over in Hong Kong, the Hang Seng Index is up 1.33% at 18,821.00. In Japan, the Nikkei 225 is up 0.37% at 27,450.00, while the Topix index is up 0.50% at 1927.50. South Korea’s Kospi is up 0.64% at 2,370.62. Australia S&P/ASX 200 up 1.27% at 6805.00.

Top News of the Day:

China’s crude oil imports from Russia in August surged 28% from a year earlier, data showed on Tuesday, but it handed back its top supplier ranking to Saudi Arabia for the first time in four months.

Imports of Russian oil, including supplies pumped via the East Siberia Pacific Ocean pipeline and seaborne shipments from Russia’s European and Far Eastern ports, totalled 8.342 million tonnes, data from the Chinese General Administration of Customs showed.

Market Summary as per 19/09/2022:

European equities Monday closing. The DAX futures contract in Germany traded up 0.49% at 12,803.24, CAC 40 futures down 0.26% at 6061.60 and the UK 100 futures contract in the U.K. down 0.62% at 7,236.69.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.64% at 31019.69. The S&P 500 up 0.69% at 3899.88 and the Nasdaq 100 up 0.77% at 11953.27, NYSE closes up 0.69% at 14674.45.

Top Market News Today:

In the Forex market, GBPUSD down 0.01% at 1.1428. The USDJPY up 0.08% at 143.305. The USDCHF up 0.20% at 0.9657. EURUSD up 0.02% at 1.0024, EUR/GBP up 0.07% at 0.8771. The USD/CNY up 0.09% at 7.0092 at the time of writing.

In the Commodity market U.S. Gold futures down 0.19% at $1,672.36. Elsewhere, Silver futures down 0.56% at $19.442 per ounce, Platinum up 0.02% at $918.72 per ounce, and Palladium down 2.46% at $2170.51.

Crude Oil up on Tuesday; Brent Crude Oil up 0.51% at $92.05 per barrel while U.S. West Texas Intermediate (CLc1) up 0.30% at $85.12.

In the Cryptocurrency Markets, Bitcoin at 19401.00 down 0.70%, Ethereum down 1.41% at 1366.93, Litecoin at 52.20 down 1.45%, at the time of writing.

Top Market Segment to Watch Out Today:

GOLD: Gold prices rose slightly on Tuesday but kept to a tight range seen this week as investors held off from making big bets ahead of a U.S. Federal Reserve meeting that is expected to result in an interest rate hike.

Pressure on gold eased slightly on Tuesday as the U.S. dollar edged lower. But the greenback stayed pinned near 20-year highs, while U.S. Treasury yields rose, ahead of an interest rate decision by the Fed.

Economic News:

US: Confidence among U.S. single-family homebuilders fell for the ninth straight month in September as soaring mortgage rates and persistently high prices for building materials made new housing less affordable for many first-time buyers.

The National Association of Home Builders/Wells Fargo Housing Market index dropped three points to 46 this month. Discounting the plunge during the spring of 2020 when the economy was reeling from the first wave of COVID-19, this was the lowest reading since May 2014. A reading below 50 indicates that more builders view conditions as poor rather than good.

Economists polled by Reuters had forecast the index at 47.

The Federal Reserve’s aggressive monetary policy tightening has had a significant impact on the housing market, compared to the labor market and consumer spending, where demand remains fairly strong.

Euro Zone: Britain’s low headline rate of corporation tax has failed to boost business investment, which lags behind that of all its major peers, according to a report on Tuesday which comes as the government prepares to reverse a planned rise.

Britain’s 19% corporation tax rate – the lowest in the Group of Seven (G7) large, rich nations – had been due to rise to 25% in 2023 under plans announced last year by former finance minister Rishi Sunak.

However, opposing the rise formed a major part of Liz Truss’s successful campaign to defeat Sunak in the contest to succeed Boris Johnson as Conservative Party leader and Britain’s prime minister.

New finance minister Kwasi Kwarteng is expected to confirm this in an emergency fiscal statement on Friday, where he gives more details about Truss’s plan to support the economy in the face of surging energy bills.

Top Economic Releases Today:

U.S. Building Permits (Aug) today at 08:30 this time estimated 1.610M, previously which was 1.685M.
U.S. API Weekly Crude Oil Stock today at 16:30 previously which was 6.035M.
CANADA Core CPI (MoM) (Aug) today at 08:30 previously which was 0.50%.
EURO ZONE ECB President Lagarde Speaks today at 13:00.
GERMANY PPI (MoM) (Aug) today at 02:00 this time estimated 1.6%, previously which was 5.3%.