Technical Analysis Report

29 Jul

Technical Analysis Report – 29 July 2022

/ CSFX Analytics

WALL STREET STOCK RALLIED AS INVESTORS DIGESTED THE DECLINING U.S. ECONOMY

Asia-Pacific stocks were mixed on Friday morning. The Shanghai Composite is down 0.90% at 3,252.95. Overall, the Singapore MSCI is down 1.36% at 292.95. Over in Hong Kong, the Hang Seng Index is down 2.45% at 20,100. In Japan, the Nikkei 225 is down 0.14% at 27,770.00, while the Topix index is down 0.39% at 1939.00. South Korea’s Kospi is up 0.67% at 2,451.49. Australia S&P/ASX 200 up 0.81% at 6945.20.

Top News of the Day:

Wall Street stocks rallied on Thursday, while Treasury yields fell for the third straight day as investors digested data showing a declining U.S. economy for a second straight quarter, a day after the Federal Reserve hiked interest rates.

U.S. second-quarter gross domestic product (GDP) fell at a 0.9% annualized rate, according to the Commerce Department’s advance estimate. This compares with economist expectations for 0.5% growth and came after a first-quarter contraction of 1.6%.

Market Summary as per 28/07/2022:

European equities Thursday closing. The DAX futures contract in Germany traded up 0.88% at 13,282.11, CAC 40 futures up 1.30% at 6339.21 and the UK 100 futures contract in the U.K. down 0.04% at 7,345.26.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.03% at 32529.64. The S&P 500 up 1.21% at 4072.42 and the Nasdaq 100 up 0.92% at 12717.87, NYSE closes up 1.12% at 15198.80.

Top Market News Today:

In the Forex market, GBPUSD up 0.39% at 1.2225. The USDJPY down 1.12% at 132.734. The USDCHF down 0.25% at 0.9516. EURUSD up 0.40% at 1.0237, EUR/GBP up 0.05% at 0.8373. The USD/CNY down 0.07% at 6.7423 at the time of writing.

In the Commodity market U.S. Gold futures up 0.54% at $1,765.97. Elsewhere, Silver futures up 0.88% at $20.173 per ounce, Platinum up 0.56% at $894.50 per ounce, and Palladium down 0.55% at $2067.50.

Crude Oil down on Friday; Brent Crude Oil down 0.15% at $107.41 per barrel while U.S. West Texas Intermediate (CLc1) down 0.26% at $96.20.

In the Cryptocurrency Markets, Bitcoin at 24225.00 up 1.25%, Ethereum up 0.41% at 1732.65, Litecoin at 63.23 down 0.24%, at the time of writing.

Top Market Segment to Watch Out Today:

TOYOTA: Heavy rains in western Japan will cost Toyota Motor (NYSE:TM) Corp an additional 1,000 or so vehicles in lost production in July, the automaker said on Friday, bringing its total estimated cut in output for the month to 5,200. It marks the second time this week that Toyota has revised its expected cut in domestic production, which it initially said would total 4,000 vehicles.

Economic News:

US: Japan and the United States are expected to agree on joint research for next-generation semiconductors to establish a secure source of the vital components during economic talks between the allies, Japanese media said on Friday.

Japanese foreign minister Yoshimasa Hayashi and trade minister Koichi Hagiuda will meet U.S. Secretary of State Antony Blinken and Commerce Secretary Gina Raimondo in Washington D.C. for the first round of economic “two plus two” talks on Friday, with supply chain security expected to be a major topic.

A joint research and development centre will be set up in Japan by the end of this year to research 2-nanometer semiconductor chips, the Nikkei Shimbun said.

The centre will include a prototype production line and should begin producing semiconductors by 2025, it added. The agreement to set up the centre will be included in a statement to be issued after the meeting.

Eurozone: The German academic behind the European Central Bank’s biggest court setback is weighing legal action against the ECB’s new bond-market shield, which he sees as “blatant” aid to Italy and other debt-laden states.

Markus Kerber is taking aim at the Transmission Protection Instrument (TPI), which will let the ECB buy bonds from countries that come under what it deems unjustified market pressure, provided they follow the European Union’s economic prescriptions.

The professor of public finance at Berlin’s Technical University said these potentially unlimited debt purchases were chiefly aimed at helping Italy, the euro zone’s biggest debtor, and that they violate European Union rules barring the ECB from financing states.

“The ECB will openly become the underwriter of state debt,” Kerber told Reuters in an interview. “This is a blatant case of state financing.”

Top Economic Releases Today:

GERMANY Unemployment Change (Jul) today at 3:55 this time estimated 15K, previously which was 133K.
EUROZONE GDP (YoY) today at 5:00 this time estimated 3.4%, previously which was 5.4%.
CANADA GDP (MoM) (May) today at 8:30 this time estimated -0.2%, previously which was 0.3%.
U.S. Chicago PMI (Jul) today at 9:45 this time estimated 55.00, previously which was 56.00.
BRAZIL Unemployment Rate today at 8:00 this time estimated 9.4%, previously which was 9.8%.