Technical Analysis Report - 01 August 2022

01 Aug

Technical Analysis Report – 01 August 2022

/ CSFX Analytics

DOW FUTURES WERE SLIGHTLY LOWER ON SUNDAY AFTER CLOSING HIGHER ON WEEK AND MONTHLY GAIN

Asia-Pacific shares were sluggish on Monday as disappointing Chinese economic data. The Shanghai Composite is up 0.21% at 3,259.95. Overall, the Singapore MSCI is up 1.05% at 297.10. Over in Hong Kong, the Hang Seng Index is up 0.36% at 20,160. In Japan, the Nikkei 225 is up 0.90% at 28,000.00, while the Topix index is up 1.19% at 1960.50. South Korea’s Kospi is up 0.03% at 2,452.25. Australia S&P/ASX 200 up 0.69% at 6993.00.

Top News of the Day:

Dow futures were trading slightly lower during Sunday’s evening deals, after major benchmark indices finished this week significantly higher and finishing July with the largest gains since April 2020, with market participants looking ahead to a continued deluge of earnings results and key NFP data.

Investors will be closely monitoring July’s Nonfarm Payrolls print, with analysts estimating a slowdown in hiring, forecasting the addition of 250K jobs which would be the lowest since December of 2020, while the unemployment rate is expected to hold steady at 3.6%.

Market Summary as per 29/07/2022:

European equities Friday closing. The DAX futures contract in Germany traded up 0.02% at 13,488.16, CAC 40 futures up 0.17% at 6459.19 and the UK 100 futures contract in the U.K. up 1.06% at 7,423.42.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.97% at 32845.14. The S&P 500 up 1.42% at 4130.28 and the Nasdaq 100 up 1.81% at 12947.97, NYSE closes up 0.85% at 15327.70.

Top Market News Today:

In the Forex market, GBPUSD up 0.18% at 1.2191. The USDJPY down 0.68% at 132.291. The USDCHF down 0.03% at 0.9505. EURUSD up 0.05% at 1.0231, EUR/GBP up 0.06% at 0.8393. The USD/CNY up 0.13% at 6.7518 at the time of writing.

In the Commodity market U.S. Gold futures up 0.03% at $1,766.27. Elsewhere, Silver futures down 0.52% at $20.215 per ounce, Platinum up 0.56% at $902.00 per ounce, and Palladium down 0.31% at $2122.00.

Crude Oil down on Monday; Brent Crude Oil down 0.10% at $103.52 per barrel while U.S. West Texas Intermediate (CLc1) down 0.67% at $96.67.

In the Cryptocurrency Markets, Bitcoin at 23215.00 down 3.23%, Ethereum down 0.14% at 1676.90, Litecoin at 59.34 down 0.79%, at the time of writing.

Top Market Segment to Watch Out Today:

HSBC: HSBC sought to woo investors on Monday with a higher profitability target and bullish dividend outlook, as Europe’s biggest bank pushed back on a proposal by top shareholder Ping an Insurance Group Co of China to split itself.

The London-headquartered bank raised its near-term return on tangible equity goal to at least 12% from 2023 onwards from an earlier flagged 10% minimum. HSBC also said that it intends to revert to paying quarterly dividends from the start of 2023.

Economic News:

US: The United States and Japan launched a new high-level economic dialogue on Friday aimed at pushing back against China and countering the disruption caused by Russia’s invasion of Ukraine.

The two long-time allies agreed to establish a new joint research centre for next-generation semiconductors during the so-called economic “two-plus-two” ministerial meeting in Washington, Japanese Trade Minister Koichi Hagiuda said.

U.S. Secretary of State Antony Blinken, U.S. Commerce Secretary Gina Raimondo, Japanese Foreign Minister Yoshimasa Hayashi and Hagiuda also discussed energy and food security, the officials said in a news briefing.

“As the world’s first- and third-largest economies, it is critical that we work together to defend the rules-based economic order, one in which all countries can participate, compete and prosper,” Blinken told the opening session.

Eurozone: The British public’s expectations for inflation fell again in July, a survey showed on Monday, potentially adding to the case for the Bank of England (BoE) to increase interest rates by only a quarter percentage point later this week.

U.S. bank Citi and pollsters YouGov said expectations for inflation in five to 10 years’ time dropped to 3.8% in July from 4.0% in June, the third fall in the last four months.

Inflation expectations for 12 months’ time edged down to 6.0% from 6.1%, the survey showed.

The BoE’s Monetary Policy Committee (MPC), which has raised interest rates steadily since December to fight an inflation rate now above 9%, has said it is ready to act forcefully if needed to stop the recent price surge from becoming embedded.

That has raised the prospect of the first half percentage-point BoE rate hike since 1995 as soon as Thursday, after its August policy meeting.

“For the MPC, these data (alongside recent developments) are likely to mean concerns surrounding medium-term inflation expectations remain,” Benjamin Nabarro, an economist with Citi, said in a note to clients.

Top Economic Releases Today:

U.S. Manufacturing PMI (Jul) today at 9:45 this time estimated 52.30, previously which was 52.70.
AUSTRALIA Building Approvals (MoM) (Jun) today at 21:30 this time estimated -5.0%, previously which was 9.9%.
JAPAN 10-Year JGB Auction today at 23:35 previously which was 0.248%.
U.K. Manufacturing PMI (Jul) today at 4:30 this time estimated 52.20, previously which was 52.80.
EURO ZONE Manufacturing PMI (Jul) today at 4:00 this time estimated 49.6, previously which was 52.1.