Technical Analysis Report – 19 August 2022

19 Aug 2022

CHIP STOCKS PUSHED TECH HIGHER VANISH FED NEXT MONTH RATE HIKE NEWS

Asia Pacific stocks moved little on Friday. The Shanghai Composite is down 0.59% at 3,258.07. Overall, the Singapore MSCI is down 1.53% at 295.60. Over in Hong Kong, the Hang Seng Index is down 0.07% at 19,720.00. In Japan, the Nikkei 225 is down 0.03% at 28,930.00, while the Topix index is up 0.30% at 1995.50. South Korea’s Kospi is down 0.61% at 2,492.69. Australia S&P/ASX 200 up 0.02% at 7114.50.

Top News of the Day:

The Dow eked out a gain Thursday, to remain on course for a fifth-straight weekly gain as rallying chip stocks pushed tech higher even as a Federal Reserve official talked up the idea of another large rate hike next month.

Energy stocks also played a big role in the broader market climb as oil prices continued to ride, easing fears of the U.S. recession higher. Data on Thursday showed the labour market remained robust and manufacturing activity rebounded.

Market Summary as per 18/08/2022:

European equities Thursday closing. The DAX futures contract in Germany traded down 0.72% at 13,598.74, CAC 40 futures down 0.34% at 6535.34 and the UK 100 futures contract in the U.K. down 0.23% at 7,524.28.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.06% at 33999.05. The S&P 500 up 0.23% at 4283.73 and the Nasdaq 100 up 0.26% at 13505.99, NYSE closes up 0.19% at 15763.89

Top Market News Today:

In the Forex market, GBPUSD down 0.09% at 1.1921. The USDJPY up 0.48% at 136.555. The USDCHF up 0.20% at 0.9579. EURUSD flat at 1.0083, EUR/GBP up 0.09% at 0.8459. The USD/CNY up 0.32% at 6.8077 at the time of writing.

In the Commodity market U.S. Gold futures down 0.28% at $1,754.03. Elsewhere, Silver futures down 1.14% at $19.288 per ounce, Platinum down 1.15% at $901.50 per ounce, and Palladium down 0.90% at $2137.00.

Crude Oil down on Friday; Brent Crude Oil down 1.25% at $95.29 per barrel while U.S. West Texas Intermediate (CLc1) down 1.17% at $88.83.

In the Cryptocurrency Markets, Bitcoin at 22015.00 down 5.66%, Ethereum down 5.42% at 1747.00, Litecoin at 56.09 down 6.50%, at the time of writing.

Top Market Segment to Watch Out Today:

Dollar Index: The U.S. dollar rose to a new one-month high in early European trade as Federal Reserve policymakers pointed to further aggressive interest rates ahead in the battle to tame soaring inflation.

The Dollar Index, which tracks the greenback against a basket of six other currencies, after earlier touching 107.72, its highest since July 18.

Economic News:

US: Most members surveyed by the American Chamber of Commerce in Taiwan said they had not been significantly affected by recent Chinese military drills around the island, but had heightened concerns, the group said on Friday.

China, which claims Taiwan as its own territory, has been carrying out the war games and exercises since U.S. House Speaker Nancy Pelosi visited Taipei this month.

AmCham Taiwan said 126 of its 529 members responded to the Aug. 8-17 survey. Seventy-seven percent reported their businesses had not been significantly affected, while 17% said they had experienced disruption, including increased shipping or insurance costs, or supply chain delays.

Nearly half of the 17% said the disruption stemmed from “changes in policies or other manifestations of concern from their offshore headquarters”, it added in a statement.

Looking further ahead, 46% of surveyed companies expected increased military activity this year and next would affect their operations, while the rest were either unsure or did not expect to be affected, the group said.

Eurozone: British shoppers spent more than expected last month as many were enticed by online shopping promotions, despite a weaker picture recently as households battled the highest inflation in more than 40 years, official figures showed on Friday.

Retail sales volumes, adjusted for inflation and the time of year, rose 0.3% on the month in July after a downwardly revised drop of 0.2% in June, the Office for National Statistics said.

Sales have fallen by 1.2% over the past three months and were 3.4% lower than a year ago. Economists polled by Reuters had forecast a 0.2% monthly drop in sales volumes and a 3.3% annual fall.

Top Economic Releases Today:

U.K. Retail Sales (MoM) (Jul) today at 2:00 this time estimated -0.2%, previously which was 0.2%.
CANADA Core Retail Sales (MoM) (Jun) today at 8:30 this time estimated 0.9%, previously which was 1.9%.
GERMANY PPI (MoM) (Jul) today at 2:00 this time estimated 0.6%, previously which was 0.6%.
EURO ZONE Current Account n.s.a. (Jun) today at 4:00 previously which was -15.4B.
INDIA FX Reserves-USD today at 7:30 previously which was 572.98B.