Technical Analysis Report

26 Jul

Technical Analysis Report – 26 July 2022

/ CSFX Analytics

MONDAY’S S&P 500’S SWINGS, ENDED ALMOST UNCHANGED

Asia-Pacific stocks were largely up on Tuesday morning. The Shanghai Composite is up 0.83% at 3,277.43. Overall, the Singapore MSCI is down 0.39% at 293.25. Over in Hong Kong, the Hang Seng Index is up 1.87% at 20,941. In Japan, the Nikkei 225 is down 0.18% at 27,650.00, while the Topix index is up 0.03% at 1944.00. South Korea’s Kospi is up 0.39% at 2,412.96. Australia S&P/ASX 200 up 0.26% at 6807.30.

Top News of the Day:

The S&P 500 see-sawed on Monday and ended close to unchanged as investors girded for an expected rate hike at a Federal Reserve meeting this week and earnings from several large-cap growth companies.

The Nasdaq ended lower, and S&P 500 technology and consumer discretionary led declines among major S&P sectors. The energy sector gained along with oil prices.

Market Summary as per 25/07/2022:

European equities Monday closing. The DAX futures contract in Germany traded down 0.38% at 13,158.72, CAC 40 futures down 0.23% at 6223.02 and the UK 100 futures contract in the U.K. up 0.53% at 7,345.47.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.28% at 31990.05. The S&P 500 up 0.13% at 3966.83 and the Nasdaq 100 down 0.55% at 12328.41, NYSE closes up 0.73% at 14899.08.

Top Market News Today:

In the Forex market, GBPUSD up 0.11% at 1.2052. The USDJPY down 0.03% at 136.599. The USDCHF down 0.03% at 0.9640. EURUSD up 0.15% at 1.0233, EUR/GBP up 0.10% at 0.8490. The USD/CNY up 0.05% at 6.7540 at the time of writing.

In the Commodity market U.S. Gold futures up 0.45% at $1,726.93. Elsewhere, Silver futures up 1.16% at $18.642 per ounce, Platinum up 0.80% at $887.50 per ounce, and Palladium up 0.65% at $2020.00.

Crude Oil up on Tuesday; Brent Crude Oil up 2.09% at $107.05 per barrel while U.S. West Texas Intermediate (CLc1) up 2.18% at $97.83.

In the Cryptocurrency Markets, Bitcoin at 21115.00 down 3.52%, Ethereum down 5.01% at 1421.00, Litecoin at 53.29 down 1.55%, at the time of writing.

Top Market Segment to Watch Out Today:

General Motors Co.: General Motors Co (NYSE:GM)’s South Korea unit has resumed production at its two factories in the country this week following a production halt that lasted about two weeks over procurement issues, an official at GM Korea told Reuters on Tuesday.

The U.S. automaker’s Korea unit had suspended production of all vehicles at its Changwon and No. 2 Bupyeong plants since mid-July after a local supplier, which demanded a price hike for its products, refused to supply auto parts.

Economic News:

US: With the Federal Reserve set to jack up interest rates again this week, Wall Street is on alert for signs of recession, and recent housing data suggests the sector may be a harbinger of a cooling economy.

Homebuilder stocks, sales and mortgage data show that previously booming housing market is falling back to earth amid a broader economic cooldown.

Surging mortgage rates, exacerbated by Fed hikes this year, have begun to reverse a demand/supply imbalance, the result of a suburban stampede prompted by COVID-19 lockdowns. The ensuing drop in inventories, along with a scarcity of lots, materials and construction labour, has launched home prices into orbit.

Combine that with the highest home loan rates in a generation, and affordability has evaporated along with demand.

On Tuesday, two additional housing indicators are expected. The first is S&P Case-Shiller’s 20-city composite, which is expected to show year-on-year home prices cooled in May to a still-blistering 20.8%.

Eurozone: Russia plans to curb natural gas flows on the Nord Stream pipeline — less than a week after bringing the link back from maintenance — jolting European energy markets and escalating concerns over a supply crunch on the continent this winter.

Gazprom PJSC (OTC:OGZPY) will cut shipments via the link to Germany to about 20% of its capacity from 7 a.m. Moscow time on Wednesday, the Russian gas giant said in a statement. One more gas turbine, crucial for the supply, is due for maintenance and will be taken out of service then, according to the company.

Gas had been flowing through the pipeline — the main gas conduit from Russia to the European Union — at about 40% of capacity since it returned from 10 days of maintenance on July 21. That’s about the same level as before the works.

Benchmark European gas prices soared as much as 12% on the news and French year-ahead power jumped to a record. Europe is in the grips of its worst energy crisis in decades, and governments have been racing to fill gas storage sites ahead of winter. The supply crunch has seeped into the broader economy, contributing to concerns about a possible recession and raising the risk of gas rationing during the colder months.

Top Economic Releases Today:

CANADA Wholesale Sales (MoM) (Jun) today at 8:30 this time estimated 2.0%, previously which was 1.6%.
U.S. New Home Sales (Jun) today at 10:00 this time estimated 660K, previously which was 696K.
AUSTRALIA CPI (QoQ) (Q2) today at 21:30 this time estimated 1.9%, previously which was 2.1%.
U.S. API Weekly Crude Oil Stock today at 16:30 previously which was 1.860M.
CHINA Industrial profit (YoY) (Jun) today at 21:30 previously which was -6.50%.