Fundamental And Technical Analysis Report – 26 December 2022

26 Dec 2022

BOJ Kuroda rejects the chance of leaving the easy policy in the near future

Asian stock market closes in red on Friday. The Shanghai Composite is down 0.28% at 3045.87. Overall, the Singapore MSCI is flat 0.00% at 289.65. Over in Hong Kong, the Hang Seng Index is down 0.44% at 19593.06. In Japan, the Nikkei 225 is down 1.03% at 26235.25. While the Topix index is down 0.54% at 1897.94 South Korea’s Kospi is down 1.83% at 2313.69. Australia S&P/ASX 200 down 0.63% at 7107.70.

Top News of the Day:-

Bank of Japan (BOJ) Governor Haruhiko Kuroda on Monday brushed aside the chance of a near-term exit from ultra-loose monetary policy but voiced hope that intensifying labour shortages will prod firms to raise wages.

Kuroda said the BOJ’s decision last week to widen the allowance band around its yield target was aimed at enhancing the effect of its ultra-easy monetary policy, rather than a first step toward withdrawing its massive stimulus programme.

“This is definitely not a step toward an exit. The Bank will aim to achieve the price target in a sustainable and stable manner, accompanied by wage increases, by continuing with monetary easing under yield curve control,” Kuroda said in a speech delivered to a meeting of Japan’s business lobby Keidanren.

He also said Japan’s average consumer inflation will likely slow below the BOJ’s 2% target next fiscal year as the effects of soaring import costs dissipate.

Market Summary as per 23/12/2022:

European equities Friday closing. The DAX futures contract in Germany traded up 0.19% at 13940.93, CAC 40 futures down 0.20% at 6504.90. UK 100 futures contract in the U.K. up 0.05 at 7473.01

In the U.S. on Wall Street, the Dow Jones Industrial Average Closed up 0.53% at 33203.93. The S&P 500 up 0.59% at 3844.82 and the Nasdaq 100 up 0.21% at 10497.46, NYSE closes 0.71% up at 15188.45.

Top Market News Today:

In the Forex market, GBPUSD up 0.12% at 1.2060. The USDJPY down 0.25% at 132.42, The USDCHF down 0.01 at 0.9326. EURUSD up 0.05% at 1.0619. EUR/GBP down 0.16% at 0.8792. The USD/CNY down 0.13% at 6.9784 at the time of writing.

In the Commodity market U.S. Gold futures down at 0.60% $1,806.00. Elsewhere, Silver futures up 0.09% at $23.72 per ounce, Platinum down 0.49% at $1020.50 per ounce, and Palladium up 4.40% at $1754.00.

Brent Crude Oil flat 0.00% at $84.50 per barrel.

In the Cryptocurrency Markets, Bitcoin at 16884.30 up at 0.33%, Ethereum up 0.16% at 1220.20, Litecoin at 69.07 down 0.17%, at the time of writing.

Top Market Segment to Watch Out Today:

Toyota Motor Corp: – Toyota Motor Corp reported on Monday a 1.5% rise in November global vehicle output, reaching a new record of 833,104.

Domestic production slid 3.3% to 266,174 vehicles, while overseas output rose 3.8% to an all-time high of 566,930 for the month.

Global sales and production in November exceeded last year’s levels due to solid demand, particularly in North America, and a recovery in parts supplies that had been impacted by COVID-19 slowdowns, Toyota said.

Economic News:

US: – An arctic blast that gripped much of the United States on Saturday left more than 700,000 without power, at least 16 dead from weather-related car crashes and thousands stranded due to flight cancellations.

Plummeting temperatures were expected to bring the coldest Christmas Eve on record, and energy systems across the country were strained by rising demand for heat and storm-related damage to transmission lines.

The latest outage numbers are a sharp drop from the 1.8 million U.S. homes and businesses left without power as of early Saturday morning, according to tracking site Poweroutage.us.

Many electric companies continued to ask customers to conserve energy by not running large appliances and turning off unneeded lights.

Duke Energy (NYSE: DUK) By late Saturday afternoon told customers it had ended the 15-30-minute rolling blackouts across North and South Carolina that it had initiated earlier in the day until additional electricity was available.

Disruptions upended daily routines and holiday plans for millions of Americans during one of the year’s busiest travel periods.

More than 2,700 U.S. flights were cancelled on Saturday, with total delays tallying more than 6,400, according to flight-tracking service FlightAware. More than 5,000 flights were cancelled on Friday, FlightAware said.

The American Automobile Association had estimated that 112.7 million people would venture 50 miles (80 km) or more from home between Dec. 23 and Jan. 2. But stormy weather heading into the weekend likely ended up keeping many people at home.

Weather-related car accidents around the country left at least 16 dead and hundreds stranded on ice and snowbound roads, according to media reports.

Euro Zone: – Britain will increase defence spending by more than 1 billion pounds ($1.21 billion) to avoid a real-terms cut over the next two years, the Telegraph newspaper reported on Saturday.

Finance minister Jeremy Hunt is expected to announce the increase in his budget in the spring, it said.

The newspaper said military experts estimate that the Ministry of Defence budget in 2024/25 must rise to 50.1 billion pounds from 48.6 billion to avoid a real-terms cut as inflation remains above 10%.

Hunt, in his autumn budget last month, said the government recognised the need to increase defence spending and confirmed it would maintain the budget at at least 2% of gross domestic product in line with its commitment to transatlantic alliance NATO.

“We have one of the largest defence budgets in Europe and in 2020 we announced the biggest increase to defence spending since the Cold War,” a government spokesperson told Reuters.

Any increases to defence spending will be considered as part of the next integrated review, a document laying out Britain’s defence, security and foreign policy priorities, in the spring, the spokesperson added.

Top Economic Releases Today:

JPY: Corporate Service Price Index (YoY) Actual 1.7%, Forecast 1.7%, Previous 1.7%
BRL: BCB Focus Market Readout at 16:55
USD: Chicago Fed National Activity (Nov) at 19:00
JPY: Jobs/Application Ratio Forecast 1.33, Previous 1.35 at 23:30
JPY: Unemployment Rate Forecast 2.6%, Previous 2.6% at 23:30.