Technical Analysis Report - 10 August 2022

10 Aug

Technical Analysis Report – 10 August 2022

/ CSFX Analytics

NASDAQ DOWN AFTER DISMAL FORECAST OF MICRON TECHNOLOGY

Asia-Pacific markets slipped on Wednesday. The Shanghai Composite is down 0.56% at 3,229.13. Overall, the Singapore MSCI is down 0.28% at 304.45. Over in Hong Kong, the Hang Seng Index is down 2.67% at 19,467.00. In Japan, the Nikkei 225 is down 0.61% at 27,790.00, while the Topix index is down 0.10% at 1933.00. South Korea’s Kospi is down 0.90% at 2,480.88. Australia S&P/ASX 200 down 0.53% at 6992.70.

Top News of the Day:

The Nasdaq closed down on Tuesday after a dismal forecast from Micron Technology pulled chip makers and tech stocks lower as investors await U.S. inflation data that could lead the Federal Reserve to further tighten its efforts to curb inflation.

High inflation numbers on Wednesday, following last week’s blowout jobs report, would likely stop the Fed from easing interest rates hikes anytime soon and halt the market’s rally off mid-June lows.

Market Summary as per 09/08/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded down 1.12% at 13,534.97, CAC 40 futures down 0.28% at 6471.56 and the UK 100 futures contract in the U.K. down 0.11% at 7,480.15.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.18% at 32774.42. The S&P 500 down 0.42% at 4122.48 and the Nasdaq 100 down 1.15% at 13008.17, NYSE closes down 0.27% at 15264.78

Top Market News Today:

In the Forex market, GBPUSD up 0.09% at 1.2084. The USDJPY down 0.04% at 135.009. The USDCHF down 0.12% at 0.9517. EURUSD up 0.02% at 1.0214, EUR/GBP up 0.03% at 0.8453. The USD/CNY up 0.09% at 6.7586 at the time of writing.

In the Commodity market U.S. Gold futures down 0.23% at $1,790.65. Elsewhere, Silver futures down 0.48% at $20.410 per ounce, Platinum down 0.91% at $926.50 per ounce, and Palladium down 1.17% at $2198.50.

Crude Oil down on Wednesday; Brent Crude Oil down 0.95% at $95.56 per barrel while U.S. West Texas Intermediate (CLc1) down 0.90% at $89.02.

In the Cryptocurrency Markets, Bitcoin at 22945.00 down 0.50%, Ethereum down 0.84% at 1682.41, Litecoin at 58.46 down 1.42%, at the time of writing.

Top Market Segment to Watch Out Today:

CRUDE OIL: Oil prices fell on Wednesday ahead of a key U.S. report on inflation and after industry data showed U.S. crude inventories unexpectedly rose last week, signalling a potential hiccup in demand.

Brent crude futures fell 74 cents, or 0.8%, to $95.57 a barrel at 0651 GMT. U.S. West Texas Intermediate crude futures fell as much as $1.13 to $89.37. It was last down 88 cents, or 1%, at $89.62 a barrel.

Economic News:

US: U.S. consumer prices are expected to have risen at a much slower pace in July due to a sharp drop in the cost of gasoline, delivering the first notable sign of relief for Americans who have watched inflation climb over the past two years.

The Consumer Price Index (CPI) likely rose 0.2% last month after advancing 1.3% in June, according to economists polled by Reuters ahead of the release of the closely-watched Labor Department report on Wednesday.

That would be the largest month-on-month deceleration of price increases since 2005 and follow on the heels of a roughly 20% drop in the cost of gasoline. Prices at the pump spiked in the first half of this year due to the war in Ukraine, hitting a record-high average of more than $5 per gallon in mid-June, according to motorist advocacy group AAA.

The report, however, is still likely to show that underlying inflation pressures remain elevated as the Federal Reserve mulls whether to embrace another super-sized interest rate hike in September.

Eurozone: Germany’s finance ministry wants to raise income tax thresholds and slightly increase child benefits in response to the highest inflation in the country in decades, ministry officials said on Tuesday.

The tax-free allowance will rise to 10,632 euros next year and 10,932 in 2024 from 10,347 euros currently, the officials said. Meanwhile, the top tax rate will kick in from an income of 61,972 euros next year and 63,515 euros in 2023 compared with 58,597 euros currently.

Child benefits for the first two children will rise by 8 euros to 227 euros next year, the officials said.

Tax revenue is set to decline by 10.12 billion euros next year as a result, and 17.5 billion in 2024, the officials said.

The changes aim to provide some relief to households after German inflation hit 8.5 % in July, driven by soaring food and energy prices.

Top Economic Releases Today:

U.S. CPI (YoY) (Jul) today at 8:30 this time estimated 8.7%, previously which was 9.1%.
U.K. RICS House Price Balance (Jul) today at 19:01 this time estimated 60%, previously which was 65%.
RUSSIA CPI (YoY) (Jul) today at 12:00 this time estimated 15.30%, previously which was 15.90%.
GERMNANY CPI (MoM) (Jul) today at 2:00 this time estimated 0.90%, previously which was 0.10%.
CANADA Thomson Reuters IPSOS PCSI (MoM) (Aug) today at 12:00 previously which was 50.35%.