FUNDAMENTAL NEWS AND TECHNICAL ANALYSIS REPORT – 23 FEBRUARY 2023
23 Feb 2023
Global debt sees first annual drop since 2015
Asian stock market closes in red on Wednesday. The Shanghai Composite is in red by 0.46% at 3291.15. Overall, the Singapore MSCI is in green at 0.10% at 298.45. Over in Hong Kong, the Hang Seng Index is down 0.51% at 20423.84. In Japan, the Nikkei 225 is down 1.34 at 2714.32. While the Topix index is down 1.11% at 1975.25, South Korea’s Kospi is down 1.68% at 2417.68. Australia S&P/ASX 200 is down 0.30% at 7314.50.
Top News of the Day:
The post-pandemic rebound in world growth and inflation last year meant the amount of debt sloshing around the global economy saw its first annual fall in dollar terms since 2015, a widely tracked study has shown.
The Institute of International Finance report published on Wednesday estimated that the nominal value of global debt declined by some $4 trillion, bringing it fractionally back under the $300 trillion threshold breached in 2021.
With borrowing costs on the rise, particularly for emerging markets, the retrenchment was driven entirely by wealthier countries though, which as a group saw total debt decline roughly $6 trillion to $200 trillion.
In contrast, the amount of developing world debt hit a new record high of $98 trillion with Russia, Singapore, India, Mexico, and Vietnam seeing the largest individual rises.
Stronger economic activity and higher inflation meanwhile, both of which erode debt levels, saw the global debt-to-GDP ratio drop over 12 percentage points to 338% of GDP, marking the second annual drop in a row.
Market Summary as per 22/02/2023:
European equities Wednesday closing. The DAX futures contract in Germany traded up 0.01% at 15399.89, and CAC 40 futures were down 0.13% at 7299.26. UK 100 futures contract in the U.K. is down 0.59 at 7930.63.
In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.31% at 33025.29. The S&P 500 was down 0.26% at 3987.09 and the Nasdaq 100 was down 0.07% at 11484.39, NYSE was down 0.27% close at 15530.08.
Top Market News Today:
In the Forex market, GBPUSD is up 0.06% at 1.2053. The USDJPY is up 0.01% at 134.90, and The USDCHF is up 0.05 at 0.9317. EURUSD up 0.05% at 1.0609. EUR/GBP is up 0.06% at 0.8805. The USD/CNY is up 0.02% at 6.8920 at the time of writing.
In the Commodity market U.S. Gold futures up at 0.19% $1,827.70. Elsewhere, Silver futures are up 0.19% at $21.55 per ounce, Platinum down 0.11% at $947.50 per ounce, and Palladium down 0.81% at $1468.50.
Brent Crude Oil is up 0.18% at $78.24 per barrel.
In the Cryptocurrency Markets, Bitcoin at 24376.00 up at 0.78%, Ethereum up 1.45% at 1667.30, and Litecoin was at 93.77 down 0.19%, at the time of writing.
Top Market Segment to Watch Out for Today:
OIL-Oil prices edged up on Thursday, after Brent crude posted its biggest single-day loss in seven weeks the day before, as market players reassessed prospects for supply and demand
Investors in energy markets are weighing the prospects for China’s reviving demand against tepid consumption in the United States and other advanced economies, analysts from Haitong Futures said.
US:- The U.S. Department of Justice said unveiled new guidelines to encourage companies to voluntarily report criminal conduct, offering incentives to reveal wrongdoing faster and be more accountable to investors and the public.
Prosecutors would not seek guilty pleas from companies that reveal misconduct by employees or agents prior to an imminent threat of disclosure or formal government probe, the U.S. attorneys in Manhattan and Brooklyn said in a joint statement.
The government may also choose not to impose any criminal penalty, or a relatively light one, on companies that timely disclose wrongdoing.
“We hope that this new policy has a long-lasting, nationwide effect in promoting honest corporate culture and leads to more companies getting ahead of financial malfeasance before authorities come to them,” Damian Williams, the top federal prosecutor in Manhattan, said in the statement.
Williams and Breon Peace, the top federal prosecutor in Brooklyn, led the Justice Department’s development of the new policy.
The policy is part of Democratic President Joe Biden’s efforts to beef up corporate crime enforcement through what a Justice Department top official has called a “carrots and sticks” approach.
White-collar prosecutions fell to an all-time low under Republican former President Donald Trump’s administration.
Prosecutors may still seek guilty pleas from cooperating companies if the misconduct threatens national security, is “deeply pervasive” or involves current executives.
The Justice Department is expected to enhance penalties for repeat corporate offenders.
UK: -The British government set out plans on Thursday to help reduce electricity costs for energy-intensive industries from next year to ensure they can remain internationally competitive.
The proposals would include exempting firms from certain costs linked to renewable energy obligations and capacity market costs, as well as exploring reductions on network charges paid by industrial users for electricity supply, the government said.
It said the support would benefit around 300 businesses in sectors such as steel, metals, chemicals, and paper, employing around 400,000 skilled workers.
“This is carefully crafted support that will mean strategically important UK industries like steel and chemicals remain competitive on the world stage,” Business and Trade Secretary Kemi Badenoch said in a statement.
The government said the measures, which it will consult on ahead of an expected rollout from Spring 2024, would bring the energy costs of Britain’s energy-intensive industries in line with those charged in the world’s major economies.
Gareth Stace, Director General of industry body UK Steel, said British industrial energy prices had been uncompetitive for many years.
“We welcome this announcement and look forward to working with the government to ensure full price parity with European competitors,” he said. “It is essential we can compete on an equal footing, in the short term, within the fiercely competitive steel market, both in Europe and globally.”
Top Economic Releases Today:
- USD: GDP (QoQ) (Q4) Forecast 2.9%, Previous 2.9% at 19:00
- USD: Crude Oil Inventories Forecast 2.083M, Previous 16.283M at 21:30
- USD: Initial Jobless Claims Forecast 200K, Previous 194K at 19:00
- EUR: CPI (YoY) (Jan) Forecast 8.6%, Previous 8.5% at 15:30
- EUR: CPI (MoM) (Jan) Forecast –0.2%, Previous –0.4% at 15:30
GBPUSD TECHNICAL ANALYSIS
TRADE SUGGESTION – SELL AT 1.20537, TAKE PROFIT AT 1.20121, SL AT 1.20745
EURUSD TECHNICAL ANALYSIS
TRADE SUGGESTION – SELL AT 1.06158, TAKE PROFIT AT 1.05988, SL AT 1.06277
AUDUSD TECHNICAL ANALYSIS
TRADE SUGGESTION– SELL AT 0.68207, TAKE PROFIT AT 0.68054, SL AT 0.68277
USDJPY TECHNICAL ANALYSIS
TRADE SUGGESTION- BUY AT 134.778, TAKE PROFIT AT 134.946, SL AT 134.712
FTSE 100 INDEX TECHNICAL ANALYSIS
TRADE SUGGESTION – BUY AT 7894.2, TAKE PROFIT AT 7926.9, SL 7878.2
WTI CRUDE OIL TECHNICAL ANALYSIS
TRADE SUGGESTION– SELL AT 74.31, TAKE PROFIT AT 73.99, SL 74.44
SILVER TECHNICAL ANALYSIS
TRADE SUGGESTION– SELL AT 21.593, TAKE PROFIT AT 21.450, SL 21.672
ETHEREUM TECHNICAL ANALYSIS
TRADE SUGGESTION- BUY AT 1650.95, TAKE PROFIT AT 1680.54, SL AT 1638.27