Technical Analysis Report - 15 August 2022

15 Aug

Technical Analysis Report – 15 August 2022

/ CSFX Analytics

A WEEK WITH A CAUTIOUS NOTE AFTER CHINESE WEAK ECONOMIC DATA

Asian shares were mixed on Monday. The Shanghai Composite is down 0.03% at 3,275.79. Overall, the Singapore MSCI is down 0.18% at 307.85. Over in Hong Kong, the Hang Seng Index is down 0.22% at 20,084.00. In Japan, the Nikkei 225 is up 1.12% at 28,860.00, while the Topix index is up 0.48% at 1984.00. South Korea’s Kospi is up 0.16% at 2,527.94. Australia S&P/ASX 200 up 0.45% at 7064.30.

Top News of the Day:

European stock markets are expected to open in a mixed fashion Monday, starting the week on a cautious note amid concerns about slowing global growth after weak Chinese economic data.

Economic data released earlier Monday showed China’s economic growth rate unexpectedly slowing in July, prompting the country’s central bank to cut key lending rates in a surprise move.

Market Summary as per 12/08/2022:

European equities Friday closing. The DAX futures contract in Germany traded up 0.74% at 13,795.85, CAC 40 futures up 0.14% at 6553.87 and the UK 100 futures contract in the U.K. up 0.47% at 7,500.90.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.27% at 33761.06. The S&P 500 up 1.73% at 4280.14 and the Nasdaq 100 up 2.06% at 13565.87, NYSE closes up 1.29% at 15804.38

Top Market News Today:

In the Forex market, GBPUSD down 0.21% at 1.2106. The USDJPY down 0.15% at 133.302. The USDCHF up 0.18% at 0.9428. EURUSD down 0.19% at 1.0236, EUR/GBP up 0.05% at 0.8455. The USD/CNY up 0.27% at 6.7605 at the time of writing.

In the Commodity market U.S. Gold futures down 0.58% at $1,791.56. Elsewhere, Silver futures down 0.92% at $20.599 per ounce, Platinum down 0.83% at $953.00 per ounce, and Palladium down 0.04% at $2223.50.

Crude Oil down on Monday; Brent Crude Oil down 0.78% at $97.11 per barrel while U.S. West Texas Intermediate (CLc1) down 0.82% at $90.43.

In the Cryptocurrency Markets, Bitcoin at 24425.00 up 0.76%, Ethereum down 0.56% at 1926.00, Litecoin at 62.51 down 1.15%, at the time of writing.

Top Market Segment to Watch Out Today:

CRUDE OIL: Oil prices dropped for a second session on Monday as weak China economic data triggered concerns about demand at the world’s largest crude importer while the head of the world’s top exporter, Saudi Aramco (TADAWUL:2222), said it was ready to ramp up output.

Economic News:

US: U.S. import prices posted their first decline in seven months in July, helped by a strong U.S. dollar and on lower costs for both fuel and nonfuel products in another sign that inflation may have peaked.

Import prices fell by a more-than-expected 1.4% last month after rising 0.3% in June, the Labor Department said on Friday. It was the largest monthly drop since April 2020. In the 12 months through July, import prices increased 8.8% after rising 10.7% in June, the fourth straight month the annual rate has fallen.

Economists polled by Reuters had forecast import prices, which exclude tariffs, would decline 1.0% from June.

The report follows other tentative indications earlier this week that inflation has peaked, with U.S. consumer prices unchanged in July due to a sharp drop in the cost of gasoline, after advancing 1.3% in June, although underlying price pressures remained elevated. Producer prices also declined last month on the back of lower energy costs.

Eurozone: Britain’s economy contracted by less than feared in June, when public holidays had been expected to exert a big drag, although sectors most exposed to a worsening cost of living crisis, like retail and restaurants, struggled.

Output for the second quarter as a whole still contracted, however, with Britain expected to enter a long downturn at the end of the year in the face of surging inflation and rising interest’s rates.

The Office for National Statistics said gross domestic product (GDP) fell by 0.6% in June, the biggest contraction since January 2021 but less severe than the 1.3% drop predicted by a Reuters poll of economists.

The month unusually contained two bank holidays to celebrate Queen Elizabeth’s Platinum Jubilee but most of the drag on GDP in June came from the winding-down of coronavirus-related health services.

Top Economic Releases Today:

GERMANY WPI (YoY) (Jul) today at 2:00 previously which was 21.2%.
U.S. NY Empire State Manufacturing Index (Aug) today at 8:30 this time estimated 5.50, previously which was 11.10.
CANADA Manufacturing Sales (MoM) (Jun) today at 8:30 this time estimated -0.9%, previously which was -2.0%.
AUSTRALIA RBA Meeting Minutes today at 21:30.
JAPAN Industrial Production (MoM) (Jun) today at 00:30 this time estimated at -7.50%, previously which was 8.90%.