Technical Analysis Report – 11 August 2022

11 Aug 2022

U.S. FUTURES HIGHER AS CPI (JULY) COOLING FROM A 41^yr HIGH

Asia-Pacific stocks rallied on Thursday. The Shanghai Composite is up 1.18% at 3,268.02. Overall, the Singapore MSCI is up 0.98% at 308.15. Over in Hong Kong, the Hang Seng Index is up 1.91% at 19,940.00. In Japan, the Nikkei 225 is up 1.19% at 28,120.00, while the Topix index is up 1.06% at 1953.50. South Korea’s Kospi is up 1.31% at 2,513.42. Australia S&P/ASX 200 up 0.88% at 7054.60.

Top News of the Day:

U.S. stock futures were trading slightly higher during Wednesday’s evening deals, following a strong rally among major benchmark average during regular trade as highly anticipated inflation data eased slightly from 41-year highs.

On the data front, the headline consumer price index for July came in at 8.5%, below 8.7% expected and cooling from 41-year highs, sparking speculation of less aggressive rate hikes at the U.S. Federal Reserve’s next meeting.

Market Summary as per 10/08/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded up 1.23% at 13,700.93, CAC 40 futures up 0.52% at 6523.45 and the UK 100 futures contract in the U.K. up 0.25% at 7,507.12.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.63% at 33309.52. The S&P 500 up 2.13% at 4210.23 and the Nasdaq 100 up 2.85% at 13378.32, NYSE closes up 1.89% at 15552.70

Top Market News Today:

In the Forex market, GBPUSD down 0.17% at 1.2190. The USDJPY up 0.21% at 133.151. The USDCHF up 0.19% at 0.9442. EURUSD down 0.16% at 1.0282, EUR/GBP up 0.09% at 0.8434. The USD/CNY up 0.23% at 6.7394 at the time of writing.

In the Commodity market U.S. Gold futures down 0.34% at $1,785.20. Elsewhere, Silver futures down 0.65% at $20.456 per ounce, Platinum flat at $941.50 per ounce, and Palladium down 0.71% at $2236.50.

Crude Oil up on Thursday; Brent Crude Oil up 0.01% at $97.00 per barrel while U.S. West Texas Intermediate (CLc1) up 0.04% at $90.93.

In the Cryptocurrency Markets, Bitcoin at 24596.00 up 2.64%, Ethereum up 2.37% at 1898.70, Litecoin at 62.45 up 1.45%, at the time of writing.

Top Market Segment to Watch Out Today:

Verizon Comm. Inc.: Verizon Communications Inc (NYSE:VZ)’s internet services were down for thousands of users on Thursday, according to outage tracking website Downdetector.com.

There were more than two thousand incidents of people reporting issues with the wireless carrier, according to Down detector, which tracks outages by collating status reports from a number of sources including user-submitted errors on its platform.

Economic News:

US: Slowing U.S. inflation may have opened the door for the Federal Reserve to temper the pace of coming interest rate hikes, but policymakers left no doubt they will continue to tighten monetary policy until price pressures are fully broken.

A U.S. Labor Department report Wednesday showing consumer prices didn’t rise at all in July compared with June was just one step in what policymakers said would be a long process, with a red-hot job market and suddenly bouyant equity prices suggesting the economy needs more of the cooling that would come from higher borrowing costs.

The Fed is “far, far away from declaring victory” on inflation, Minneapolis Federal Reserve Bank President Neel Kashkari said at the Aspen Ideas Conference, despite the “welcome” news in the CPI report.

Kashkari said he hasn’t “seen anything that changes” the need to raise the Fed’s policy rate to 3.9% by year-end and to 4.4% by the end of 2023.

Eurozone: Brussels is unlikely to back down on its demand that Poland respect the rule of law to receive post-pandemic recovery funds, officials said, despite threats from Warsaw that it could block decision-making within the European Union.

Poland would be eligible for 24 billion euros in grants and 11.5 billion in very cheap loans from the fund, designed to help member states become greener and more digitalised as their economies recover.

But the money is frozen because Poland’s ruling PiS party does not want to roll back changes to the judiciary introduced over the last seven years, even though the EU’s top court has declared them incompatible with EU treaties.

With elections looming next year, the head of the nationalist and Eurosceptic PiS, Jaroslaw Kaczynski, and other senior party officials have escalated their anti-EU rhetoric, insisting that Poland will make no concessions.

Top Economic Releases Today:

U.S. Initial Jobless Claims today at 8:30 this time estimated 263K, previously which was 260K.
previously which was 43.30.
RUSSIA Central Bank reserves (USD) today at 9:00 previously which was 571.2B.

U.S. PPI (MoM) (Jul) today at 8:30 this time estimated 0.2%, previously which was 1.1%.
GERMANY Current Account Balance n.s.a (Jun) today at 10:00 previously which was 2.5B.