Fundamental and Technical Analysis Report – 26 September 2022
26 Sep 2022
EUROPEAN MARKETS ARE EXPECTED TO OPEN LOWER
Asian Pacific stock markets tumbled further on Monday. The Shanghai Composite is down 0.68% at 3,067.37. Overall, the Singapore MSCI is down 1.30% at 280.70. Over in Hong Kong, the Hang Seng Index is down 0.43% at 17,821.00. In Japan, the Nikkei 225 is down 0.82% at 26,250.00, while the Topix index is down 0.89% at 1846.00. South Korea’s Kospi is down 3.02% at 2,220.94. Australia S&P/ASX 200 down 1.60% at 6469.40.
Top News of the Day:
European stock markets are expected to open lower Monday, weighed by a deteriorating economic outlook and political uncertainty.
European equities have been under pressure for most of the year as investors fretted over the toxic combination of high inflation, aggressive monetary tightening, a brewing energy crisis and the economic consequences of the Russia-Ukraine war.
Market Summary as per 23/09/2022:
European equities Friday closing. The DAX futures contract in Germany traded down 1.97% at 12,284.19, CAC 40 futures down 2.28% at 5783.42 and the UK 100 futures contract in the U.K. down 1.97% at 7,018.61.
In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 1.62% at 29590.42. The S&P 500 down 1.72% at 3693.22 and the Nasdaq 100 down 1.66% at 11311.24, NYSE closes down 2.26% at 13796.99.
Top Market News Today:
In the Forex market, GBPUSD down 2.25% at 1.0607. The USDJPY up 0.46% at 143.944. The USDCHF up 0.60% at 0.9865. EURUSD down 0.53% at 0.9635, EUR/GBP up 1.73% at 0.9077. The USD/CNY up 0.53% at 7.164 at the time of writing.
In the Commodity market U.S. Gold futures down 0.40% at $1,636.30. Elsewhere, Silver futures down 1.50% at $18.570 per ounce, Platinum down 0.06% at $853.50 per ounce, and Palladium down 0.12% at $2064.50.
Crude Oil down on Monday; Brent Crude Oil down 2.34% at $84.67 per barrel while U.S. West Texas Intermediate (CLc1) down 2.33% at $77.31.
In the Cryptocurrency Markets, Bitcoin at 18695.00 down 0.27%, Ethereum down 0.27% at 1286.00, Litecoin at 52.41 up 0.08%, at the time of writing.
Top Market Segment to Watch Out Today:
CRUDE OIL: Oil prices fell for a second day on Monday on fears of lower fuel demand from an expected global recession sparked by rising worldwide interest rates and as a surging U.S. dollar limits the ability of non-dollar consumers to purchase crude.
A stronger greenback tends to curtail demand for dollar-denominated oil since buyers using other currencies must spend more to buy crude.
US: Atlanta Federal Reserve President Raphael Bostic said on Sunday he still believes the U.S. central bank can tame inflation without substantial job losses given the economy’s continued momentum.
“If you look over history … there is a really good chance that if we have job losses it will be smaller” than in past slowdowns, Bostic said on CBS’s “Face the Nation” program.
“Inflation is high. It is too high. And we need to do all we can to make it come down,” Bostic said of the Fed’s plans to continue with aggressive interest rate increases meant to slow the economy, bring the demand for goods and services more in line with supply, and lower inflation running at a four-decade high.
How deep and enduring a slowdown is needed – and the job losses that might entail – remains a matter of debate, with Fed officials continuing to argue that companies will be unlikely to lay off workers that have been hard to hire during the COVID-19 pandemic.
Euro Zone: Keir Starmer, leader of Britain’s Labour Party, on Sunday pledged to reverse the abolition of the top rate of income tax, saying tax cuts for the wealthy wouldn’t create economic growth as he made a pitch for power at his party’s annual conference.
Starmer, who has led Britain’s main opposition party for the past two years, said he would reintroduce the top rate of income tax to 45% after the government abolished the rate in a mini-budget.
Labour suffered a crushing defeat in the last general election in 2019 and Starmer is under pressure to assert himself as the prime minister-in-waiting with clear policies to challenge the governing Conservatives.
The selection of Liz Truss as new Conservative leader on a tax-cutting agenda earlier this month has immediately widened the ideological gulf between Britain’s main parties.
Top Economic Releases Today:
- U.S. 2-Year Note Auction today at 13:00 previously which was 3.307%.
- , previously which was -0.6%.
- EURO ZONE ECB President Lagarde Speaks today at 9:00.
- JAPAN Corporate Services Price Index (CSPI) (YoY) today at 19:50 this time estimated 2.40%, previously which was 2.10%.
- GERMANY Current Assessment (Sep) today at 04:00 this time estimated 96.00, previously which was 97.50.
GBPUSD TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 1.0697, TAKE PROFIT AT 1.0571 AND STOP LOSS AT 1.0790
EURUSD TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 0.9677, TAKE PROFIT AT 0.9657 AND STOP LOSS AT 0.9699
EURGBP TECHNICAL ANALYSIS
TRADE SUGGESTION- BUY AT 0.9066, TAKE PROFIT AT 0.9085 AND STOP LOSS AT 0.9047
EURJPY TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 139.350, TAKE PROFIT AT 138.658 AND STOP LOSS AT 139.811
DOW JONES TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 29710.00 TAKE PROFIT AT 29429.00 AND STOP LOSS AT 30039.00
WTI CRUDE OIL TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 78.52 TAKE PROFIT AT 78.16 AND STOP LOSS AT 78.64
GOLD TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 1646.29, TAKE PROFIT AT 1640.20 AND STOP AT 1648.49
BITCOIN TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 18909.00 TAKE PROFIT AT 18592.61 AND STOP AT 19180.18