Technical Analysis Report - 08 August 2022

08 Aug

Technical Analysis Report – 08 August 2022

/ CSFX Analytics

CPI DATA WILL RIDE THE MARKET THIS WEEK & IS SET TO RELEASE ON WED

Asia-Pacific share markets were subdued on Monday. The Shanghai Composite is up 0.14% at 3,231.46. Overall, the Singapore MSCI is flat at 305.50. Over in Hong Kong, the Hang Seng Index is down 0.51% at 19,909.00. In Japan, the Nikkei 225 is up 0.25% at 28,240.00, while the Topix index is up 0.21% at 1951.00. South Korea’s Kospi is down 0.01% at 2,490.65. Australia S&P/ASX 200 up 0.13% at 7024.90.

Top News of the Day:

U.S. stock futures were trading lower during Sunday’s evening deals, with major benchmark averages coming off a positive week as stronger than expected earnings results continue to roll in.

Ahead in the week, market participants will turn focus toward fresh CPI data set for release on Wednesday, which is expected to slow amid falling gasoline prices. Headline CPI is expected to dip to 8.7% in July from a 40-year high of 9.1% in the previous month.

Market Summary as per 05/08/2022:

European equities Friday closing. The DAX futures contract in Germany traded down 0.65% at 13,573.93, CAC 40 futures down 0.63% at 6472.36 and the UK 100 futures contract in the U.K. down 0.11% at 7,439.75.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.23% at 32803.48. The S&P 500 down 0.16% at 4145.19 and the Nasdaq 100 down 0.78% at 13207.69, NYSE closes up 0.32% at 15273.23

Top Market News Today:

In the Forex market, GBPUSD up 0.07% at 1.2075. The USDJPY up 0.20% at 135.301. The USDCHF down 0.05% at 0.9611. EURUSD up 0.08% at 1.0187, EUR/GBP up 0.10% at 0.8435. The USD/CNY up 0.04% at 6.7631 at the time of writing.

In the Commodity market U.S. Gold futures flat at $1,774.13. Elsewhere, Silver futures up 0.27% at $19.938 per ounce, Platinum flat at $932.00 per ounce, and Palladium flat at $2126.00.

Crude Oil up on Monday; Brent Crude Oil up 1.43% at $95.70 per barrel while U.S. West Texas Intermediate (CLc1) up 1.33% at $88.98.

In the Cryptocurrency Markets, Bitcoin at 23465.00 up 2.20%, Ethereum up 1.36% at 1724.13, Litecoin at 61.71 up 0.95%, at the time of writing.

Top Market Segment to Watch Out Today:

Berkshire Hathaway: Berkshire Hathaway B (NYSE:BRKb) reported on Saturday second quarter earnings that beat analysts’ forecasts and revenue that fell short of expectations.

Berkshire Hathaway B shares are down 2% from the beginning of the year, still down 19.34% from its 52-week high of $362.10 set on March 29. They are outperforming the S&P 500 which is down 13.03% from the start of the year.

Economic News:

US: Chicago Fed President Charles Evans, Minneapolis Fed President Neel Kashkari and San Francisco Fed President Mary Daly are due to speak in the coming week and their comments will be closely watched.

The question of whether the Fed will deliver a third straight 75 bps rate hike next month or ease back slightly is currently of key importance to investors.

The strength of the labor market is a double-edged sword for the Fed – they can continue to hike rates to tackle inflation without causing a sharp increase in the unemployment rate, but on the other hand, the labor market will need to cool to help ease price pressures.

Fed Governor Michelle Bowman said Saturday that the Fed should consider more 75 bps rate hikes to bring inflation back in line with the central bank’s target, echoing recent comments by other Fed officials.

Eurozone: The U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, after the Bank of England warned last week that it expects the economy to enter a 15-month recession later this year.

However, the National Institute of Economic and Social Research, a think tank, believes the recession may start in the current quarter.

The BoE said consumer price inflation was now likely to peak at 13.3% in October – the highest since 1980 – due mostly to surging energy costs following Russia’s invasion of Ukraine and the adjustment to Brexit.

The British central bank has hiked interest rates six times since December.

Top Economic Releases Today:

U.S. 6-Month Bill Auction today at 11:30 previously which was 2.85%.
AUSTRALIA Westpac Consumer Sentiment (Aug) today at 20:30 previously which was -3.00%.
EURO ZONE Sentix Investor Confidence (Aug) today at 4:30 this time estimated -24.70, previously which was -26.40.
SWITZERLAND Unemployment Rate s.a. (Jul) today at 1:45 this time estimated 2.2%, previously which was 2.2%.
JAPAN Economy Watchers Current Index (Jul) today at 1:00 this time estimated 51.60, previously which was 52.90.