Technical Analysis Report – 15 July 2022

15 Jul 2022

S&P 500 CLOSED LOWER ON THURSDAY AFTER DISAPPOINTING RESULTS FROM U.S. BANKS

Asia-Pacific stocks were mostly up on Friday morning. The Shanghai Composite is down 1.64% at 3,228.06. Overall, the Singapore MSCI is down 0.71% at 280.00. Over in Hong Kong, the Hang Seng Index is down 2.12% at 20,271. In Japan, the Nikkei 225 is up 0.22% at 26,760.00, while the Topix index is up 0.01% at 1890.00. South Korea’s Kospi is up 0.37% at 2,330.98. Australia S&P/ASX 200 down 0.68% at 6605.60.

Top News of the Day:

The S&P 500 pared early losses to close modestly lower on Thursday after investors digested disappointing quarterly results from two large U.S. banks and hotter-than-expected inflation data.

Initially, all three major U.S. stock indexes sold off sharply in the wake of second-quarter earnings from JPMorgan Chase & Co (NYSE:JPM) and Morgan Stanley (NYSE:MS). Both reported slumping profits and warned of impending economic slowdown.

Market Summary as per 14/07/2022:

European equities Thursday closing. The DAX futures contract in Germany traded up 0.38% at 12,565.06, CAC 40 futures up 0.40% at 5938.77 and the UK 100 futures contract in the U.K. up 0.51% at 7,075.72.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.46% at 30630.18. The S&P 500 down 0.30% at 3790.37 and the Nasdaq 100 up 0.34% at 11768.40, NYSE closes down 1.18% at 14171.24.

Top Market News Today:

In the Forex market, GBPUSD down 0.03% at 1.1820. The USDJPY down 0.18% at 138.685. The USDCHF down 0.06% at 0.9820. EURUSD up 0.02% at 1.0016, EUR/GBP up 0.05% at 0.8472. The USD/CNY up 0.11% at 6.7634 at the time of writing.

In the Commodity market U.S. Gold futures down 0.42% at $1,703.06. Elsewhere, Silver futures down 0.94% at $18.241 per ounce, Platinum down 0.77% at $840.00 per ounce, and Palladium up 0.05% at $1908.50.

Crude Oil down on Friday; Brent Crude Oil down 0.04% at $99.56 per barrel while U.S. West Texas Intermediate (CLc1) down 0.55% at $93.00.

In the Cryptocurrency Markets, Bitcoin at 20695.00 up 0.34%, Ethereum up 2.47% at 1216.31, Litecoin at 51.18 down 0.12%, at the time of writing.

Top Market Segment to Watch Out Today:

CRUDE OIL: Oil prices rose on Friday amid prospects of a less aggressive U.S. rate hike, although worries about a recovery in demand capped gains. Brent crude futures for September delivery rose 94 cents, or 1.0%, to $100.04 a barrel by 0630 GMT, while WTI crude rose 63 cents, or 0.7%, to $96.41 a barrel.

Economic News:

US: The number of Americans filing new claims for unemployment benefits increased to an eight-month high last week, suggesting some cooling in the labor market amid rising interest rates and tighter financial conditions.

Despite the second straight weekly rise in claims reported by the Labor Department on Thursday, labor market conditions remain tight, with very few people on unemployment rolls. Claims at current levels are inconsistent with an imminent recession, economists said. The Federal Reserve is raising borrowing costs to dampen demand for workers and ultimately slow the overall economy as it battles to bring inflation down to its 2% target.

“Rising jobless claims may be a first sign of a loosening labor market, but with openings still very elevated it is hard to view the market as anything but tight,” said Isfar Munir, an economist at Citigroup (NYSE:C) in New York. “A sustained rise in claims is often a leading indicator of recession, but it would be premature to take away that message at this point.”

Initial claims for state unemployment benefits rose 9,000 to a seasonally adjusted 244,000 for the week ended July 9, the highest since mid-November 2021. Economists polled by Reuters had forecast 235,000 applications for the latest week.

Eurozone: The European Central Bank will unveil an unlimited bond-buying tool next week to help markets better adjust to steeper and faster interest-rate increases than previously thought, economists surveyed by Bloomberg say.

Almost 80% predict the instrument, known as the Transmission Protection Mechanism, will carry light conditions for governments it’s used to help. Nearly all expect the liquidity its purchases create to be reabsorbed in a process called sterilization.

As already-record inflation approaches double digits, economists see the ECB accelerating rate hikes following lift off on July 21. But they still consider it behind the curve, with the Federal Reserve kicking off monetary tightening back in March and now weighing an historic 100 basis-point move this month.

The ECB conceded action was necessary after long arguing inflation is temporary. But as bond yields in the euro zone’s more-indebted members jumped at the prospect of the first-rate hikes since 2011, officials decided they needed an instrument to run in parallel so monetary policy is effective.

Top Economic Releases Today:

U.S. Retail Sales (MoM) (Jun) today at 8:30 this time estimated 0.8%, previously which was -0.3%.
CANADA Wholesale Sales (MoM) (May) today at 8:30 this time estimated 2.00%, previously which was -0.50%.
U.S. Core Retail Sales (MoM) (Jun) today at 8:30 this time estimated 0.6%, previously which was 0.5%.
EURO ZONE Trade Balance (May) today at 5:00 previously which was -32.40B.
GERMANY Car Registration (YoY) (Jun) today at 2:00 previously which was -10.20%.