Technical Analysis Report

28 Jul

Technical Analysis Report – 28 July 2022

/ CSFX Analytics

FED 75-basis point hike moved U.S. STOCK FUTURES SLIGHTLY LOWER

Asia-Pacific stocks were up on Thursday morning. The Shanghai Composite is up 0.25% at 3,284.46. Overall, the Singapore MSCI is up 1.12% at 298.00. Over in Hong Kong, the Hang Seng Index is down 0.26% at 20,611. In Japan, the Nikkei 225 is up 0.18% at 27,810.00, while the Topix index is down 0.05% at 1946.50. South Korea’s Kospi is up 0.82% at 2,435.27. Australia S&P/ASX 200 up 0.97% at 6889.70.

Top News of the Day:

U.S. stock futures moved slightly lower in overnight trading after major benchmark averages lifted during Wednesday’s session as Federal Reserve policymakers delivered a 75-basis point hike.

By 7:10pm ET (11:10pm GMT) Dow Jones Futures and S&P 500 Futures declined 0.1%, while Nasdaq 100 Futures were 0.4% lower.

Market Summary as of 27/07/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded up 0.53% at 13,166.38, CAC 40 futures up 0.52% at 6290.41 and the UK 100 futures contract in the U.K. up 0.39% at 7,376.34.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.37% at 32197.60. The S&P 500 up 2.62% at 4023.61 and the Nasdaq 100 up 4.26% at 12601.47, NYSE closes up 1.61% at 15031.03.

Top Market News Today:

In the Forex market, GBPUSD is up 0.15% at 1.2172. The USDJPY is down 0.75% at 135.498. The USDCHF is down 0.03% at 0.9586. EURUSD up 0.20% at 1.0210, EUR/GBP flat at 0.8388. The USD/CNY is down 0.19% at 6.7442 at the time of writing.

In the Commodity market, U.S. Gold futures are up 0.42% at $1,741.38. Elsewhere, Silver futures up 1.32% at $19.340 per ounce, Platinum up 1.07% at $894.50 per ounce, and Palladium up 2.27% at $2076.50.

Crude Oil was up on Thursday; Brent Crude Oil was up 0.77% at $107.99 per barrel while U.S. West Texas Intermediate (CLc1) was up 0.92% at $98.11.

In the Cryptocurrency Markets, Bitcoin is at 23095.00 up 1.38%, Ethereum is down 0.27% at 1633.13, and Litecoin is at 59.66 up 1.07%, at the time of writing.

Top Market Segment to Watch Out Today:

SHELL: Shell on Thursday reported a second-quarter profit of $11.5 billion, smashing its previous record just three months earlier, lifted by a tripling of refining profits and strong gas trading.

The company also announced a share buyback program of $6 billion for the current quarter but did not raise its dividend of 25 cents per share. It said shareholder returns would remain “in excess of 30% of cash flow from operating activities”.

Economic News:

US: U.S. economic growth likely rebounded moderately in the second quarter as companies boosted exports and maintained a strong pace of spending on equipment, which could assuage financial market fears that the economy was already in recession.

The Commerce Department’s advanced second-quarter GDP report on Thursday will, however, still show that the economy was losing momentum because of high inflation that has prompted the Federal Reserve to aggressively tighten monetary policy.

“The economy is still doing okay,” said Brian Bethune, an economics professor at Boston College. “It is not as strong as it was in 2021, but we are not in a recession.”

According to a Reuters survey of economists, GDP growth likely rebounded at a 0.5% annualized rate last quarter. Estimates ranged from as low as a 2.1% rate of contraction to as high as a 2.0% growth pace.

The survey was, however, conducted before data on Wednesday showing the goods trade deficit in June was the smallest in seven months and shipments of non-defense capital goods excluding aircraft increased strongly.

Eurozone: The European Central Bank seems almost certain to face a test of its resolve to rein in excessive bond yields in coming weeks as the euro zone’s biggest debtor, Italy, heads for elections that a rightist bloc with a eurosceptic past is expected to win.

The ECB, in an attempt to cushion the impact of rising borrowing costs on Italy and other parts of the euro zone’s south, said last week that it would intervene in support of countries whose debt comes under market pressure through no fault of their own.

With the interest premium that creditors demand from Italy rising again and the country nursing a debt outlook downgrade from S&P, expectations of ECB action seem set to grow as the election campaign heats up and investors put a price on radical parties’ economic promises.

But the bank has also said it will only buy a country’s debt “to counter unwarranted, disorderly market dynamics” and if that country is in compliance with the EU’s economic protocols – including one to keep public debt in check.

Top Economic Releases Today:

The U.S. Initial Jobless Claims today at 8:30 this time estimated 253K, previously which was 251K.
RUSSIA Central Bank reserves (USD) today at 9:00 previously which was 565.3B.
JAPAN Industrial Production (MoM) (Jun) today at 19:50 this time estimated 3.7%, previously which was -7.5%.
U.S. GDP (QoQ) (Q2) today at 8:30 this time estimated 0.5%, previously which was -1.6%.
AUSTRALIA PPI (QoQ) (Q2) today at 21:30 previously which was 1.6%.