Technical Analysis Report

25 Jul

Technical Analysis Report – 25 July 2022

/ CSFX Analytics

During Sunday’s evening trades, U.S. stock futures were mixed

Asia-Pacific stocks were mostly down on Monday morning. The Shanghai Composite is down 0.55% at 3,252.82. Overall, the Singapore MSCI is down 1.11% at 293.75. Over in Hong Kong, the Hang Seng Index is down 0.52% at 20,511. In Japan, the Nikkei 225 is down 0.68% at 27,700.00, while the Topix index is down 0.72% at 1943.50. South Korea’s Kospi is up 0.44% at 2,403.69. Australia S&P/ASX 200 down 0.02% at 6789.90.

Top News of the Day:

U.S. stock futures were mixed during Sunday’s evening deals, following a positive week among major U.S. indices as market participants prepare for the busiest week of corporate earnings, while further interest rate hikes are expected at Wednesday’s Federal Reserve interest rate decision.

By 7:10pm ET (11:10pm GMT) Dow Jones Futures and S&P 500 Futures were down 0.1% apiece, while Nasdaq 100 Futures added 0.1%.

Market Summary as per 22/07/2022:

European equities Friday closing. The DAX futures contract in Germany traded up 0.05% at 13,253.68, CAC 40 futures up 0.25% at 6216.83 and the UK 100 futures contract in the U.K. up 0.08% at 7,276.38.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.43% at 31899.30. The S&P 500 down 0.93% at 3961.63 and the Nasdaq 100 down 1.77% at 12396.47, NYSE closes down 0.54% at 14790.78.

Top Market News Today:

In the Forex market, GBPUSD down 0.15% at 1.1986. The USDJPY up 0.19% at 136.328. The USDCHF up 0.34% at 0.9644. EURUSD down 0.08% at 1.0206, EUR/GBP up 0.18% at 0.8513. The USD/CNY up 0.02% at 6.7513 at the time of writing.

In the Commodity market U.S. Gold futures up 0.02% at $1,726.79. Elsewhere, Silver futures up 0.20% at $18.616 per ounce, Platinum up 0.06% at $874.00 per ounce, and Palladium down 2.72% at $1985.50.

Crude Oil down on Monday; Brent Crude Oil down 1.36% at $102.19 per barrel while U.S. West Texas Intermediate (CLc1) down 1.60% at $92.96.

In the Cryptocurrency Markets, Bitcoin at 21825.00 down 3.45%, Ethereum down 4.97% at 1518.90, Litecoin at 56.19 down 4.18%, at the time of writing.

Top Market Segment to Watch Out Today:

VODAFONE: Mobile and broadband group Vodafone (L:VOD) reported a drop in service revenue in its largest market Germany in the first quarter, reflecting broadband and TV losses after regulation changes.

Overall service revenue growth however, accelerated slightly quarter-on-quarter to 2.5%, helped by Turkey, where high inflation is providing a boost, and Britain. It said it was on track to hit its full-year targets.

Economic News:

US: The Federal Reserve will probably have to inflict much more pain on the economy to get inflation under control.

Growth is already slowing in response to the Fed’s repeated interest rate increases, with the housing market softening, technology companies curbing hiring and unemployment claims edging up.

But with inflation proving persistent at a four-decade high, a growing number of analysts say it will take a recession — and markedly higher joblessness — to ease price pressures significantly. A Bloomberg survey of economists this month put the probability of a downturn over the next 12 months at 47.5%, up from 30% in June.

“We have to curb things domestically to help us get where we want to go on inflation,” said Bank of America (NYSE:BAC) chief US economist Michael Gapen, who’s forecast a mild recession starting in the second half of 2022.

Fed officials though continue to maintain that they can avoid a recession and execute a soft landing of the economy. They argue that the economy has underlying strengths and have voiced hopes that inflation could ease as quickly as it escalated.

Eurozone: The European Central Bank will consider the economic situation before deciding whether to press ahead with another big interest rate hike in September, policymaker and fiscal hawk Robert Holzmann said on Sunday.

The ECB was balancing its wish to tackle higher inflation with a worsening economic situation because of problems like the Ukraine conflict, Holzmann told Austrian broadcaster ORF.

“The economy will grow less strongly, the forecasts point in this direction, that has made us somewhat cautious,” said Holzmann, who heads the Austrian National Bank. “We will see in the autumn what the economic situation is. Then we can probably decide if we do another 0.5% or less.”

The ECB was also keen to prevent expectations of higher inflation becoming entrenched among the general public, he added.

The ECB raised its benchmark deposit rate by 50 basis points to zero percent on Thursday, its first hike in 11 years as it joined global peers in jacking up borrowing costs.

Top Economic Releases Today:

HONG KONG Trade Balance today at 4:30 previously which was -36.70B.
U.S. 2-Year Note Auction today at 13:00 previously which was 2.060%.
GERMANY Ifo Business Climate Index (Jul) today at 04:00 this time estimated 90.20, previously which was 92.30.
FRANCE French 6-Month BTF Auction today at 9:00 previously which was 0.076%.
JAPAN Monetary Policy Meeting Minutes today at 19:50.