Technical Analysis Report – 25 August 2022

25 Aug 2022

OPEC+ WILL CUT PRODUCTION TO SUPPORT PRICES

Asian Pacific markets rose on Thursday. The Shanghai Composite is up 0.49% at 3,231.32. Overall, the Singapore MSCI is up 0.99% at 294.80. Over in Hong Kong, the Hang Seng Index is up 2.51% at 19,719.00. In Japan, the Nikkei 225 is up 0.67% at 28,510.00, while the Topix index is up 0.53% at 1977.00. South Korea’s Kospi is up 1.22% at 2,477.26. Australia S&P/ASX 200 up 0.71% at 7048.10.

Top News of the Day:

Oil prices rose on Thursday on mounting supply tightness concerns amid disruptions to Russian exports, the potential for major producers to cut output, and the partial shutdown of a U.S. refinery.

Both crude oil benchmark contracts touched three-week highs on Wednesday after the Saudi energy minister flagged the possibility that the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, will cut production to support prices.

Market Summary as per 24/08/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded up 0.20% at 13,220.06, CAC 40 futures up 0.39% at 6386.77 and the UK 100 futures contract in the U.K. down 0.22% at 7,471.50.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.18% at 32969.24. The S&P 500 up 0.29% at 4140.76 and the Nasdaq 100 up 0.28% at 12917.86, NYSE closes up 0.35% at 15392.05.

Top Market News Today:

In the Forex market, GBPUSD up 0.46% at 1.1849. The USDJPY down 0.37% at 136.580. The USDCHF down 0.44% at 0.9621. EURUSD up 0.55% at 1.0017, EUR/GBP up 0.14% at 0.8455. The USD/CNY down 0.23% at 6.8439 at the time of writing.

In the Commodity market U.S. Gold futures up 0.57% at $1,760.96. Elsewhere, Silver futures up 1.17% at $19.324 per ounce, Platinum up 1.20% at $885.00 per ounce, and Palladium up 1.62% at $2068.50.

Crude Oil down on Thursday; Brent Crude Oil down 0.18% at $101.54 per barrel while U.S. West Texas Intermediate (CLc1) down 0.22% at $94.90.

In the Cryptocurrency Markets, Bitcoin at 21689.00 up 1.48%, Ethereum up 2.77% at 1703.10, Litecoin at 57.07 up 1.15%, at the time of writing.

Top Market Segment to Watch Out Today:

Twitter Inc.: The U.S. Senate Judiciary committee will hold a hearing on Sept. 13 with Twitter Inc (NYSE:TWTR)’s former security chief Peiter “Mudge” Zatko to discuss allegations from his whistle-blower complaint that the social media company misled regulators.

Economic News:

US: Federal Reserve Chair Jerome Powell’s message on inflation and interest rates at this year’s Jackson Hole central banking conference in Wyoming will strike a tone entirely different from the soothing one he used at the same event just one year ago.

Back then, Powell used a series of charts to illustrate why he expected price pressures to ease and believed a still-underemployed and pandemic-battered nation needed continued support from the U.S. central bank.

Fast forward to this week, and while Jackson Hole’s majestic mountainous backdrop remains the same, the economic landscape has changed: the Powell-led Fed is battling high inflation with the sharpest set of interest rate hikes in 40 years.

Powell is due to deliver his speech at 10 a.m. EDT (1400 GMT) on Friday.

Here’s a walk through the data that served as the foundation for Powell’s thesis a year ago, and how things have evolved since then.

Eurozone: Consumer prices in Russia declined for the seventh week running, as the rouble’s appreciation in the past few months and a drop in consumer demand slow the pace of price growth, although households’ expectations of future inflation increased.

The consumer prices index (CPI) dipped 0.15% in the week to Aug. 22 after easing 0.13% a week earlier, the federal statistics service Rosstat said on Wednesday.

Russians focus closely on inflation among economic trends as rising prices eat into living standards. Annual inflation reached 15.1% in July, far above the central bank’s 4% target.

As of Aug. 22, annual inflation slowed to 14.60% from 14.87% a week earlier, the economy ministry said on Wednesday.

Although the economy has avoided the meltdown many predicted after Moscow sent its forces into Ukraine six months ago, with higher prices for its oil exports cushioning the impact of Western sanctions, hardships are emerging for some Russians.

Top Economic Releases Today:

GERMANY Ifo Business Climate Index (Aug) today at 4:00 this time estimated 86.80, previously which was 88.60.
U.S. GDP (QoQ) (Q2) today at 8:30 this time estimated -0.80%, previously which was -0.90%.
JAPAN Tokyo Core CPI (YoY) (Aug) today at 19:30 this time estimated 2.50%, previously which was 2.30%.
RUSSIA Central Bank reserves (USD) today at 9:00 previously which was 580.6B.
U.S. Initial Jobless Claims today at 8:30 this time estimated 253K, previously which was 250K.