Technical Analysis Report By Our Expert – 02 September 2022

02 Sep 2022

Asian Pacific markets were mixed on Friday. The Shanghai Composite is down 0.03% at 3,183.86. Overall, the Singapore MSCI is down 0.57% at 286.95. Over in Hong Kong, the Hang Seng Index is down 1.08% at 19,285.00. In Japan, the Nikkei 225 is down 0.04% at 27,630.00, while the Topix index is down 0.31% at 1928.50. South Korea’s Kospi is down 0.39% at 2,406.10. Australia S&P/ASX 200 down 0.19% at 6832.60.

Top News of the Day:

The number of Americans filing for unemployment insurance unexpectedly dropped last week, according to Labor Department data on Thursday, hinting at lingering tightness in the country’s job market.

Seasonally adjusted initial jobless claims totalled 232,000 in the week ending August 27, a decrease of 5,000 compared to the prior level. Economists had anticipated the reading to climb to 248,000.

Market Summary as per 01/09/2022:

European equities Thursday closing. The DAX futures contract in Germany traded down 1.60% at 12,630.23, CAC 40 futures down 1.48% at 6034.32 and the UK 100 futures contract in the U.K. down 1.86% at 7,148.51.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.46% at 31656.43. The S&P 500 up 0.30% at 3966.86 and the Nasdaq 100 up 0.02% at 12274.62, NYSE closes down 0.20% at 14771.89.

Top Market News Today:

In the Forex market, GBPUSD up 0.03% at 1.1548. The USDJPY up 0.10% at 140.338. The USDCHF down 0.04% at 0.9807. EURUSD up 0.26% at 0.9970, EUR/GBP up 0.23% at 0.8634. The USD/CNY up 0.20% at 6.9029 at the time of writing.

In the Commodity market U.S. Gold futures up 0.30% at $1,701.06. Elsewhere, Silver futures up 0.69% at $17.880 per ounce, Platinum up 0.38% at $831.01 per ounce, and Palladium up 1.49% at $2040.50.

Crude Oil up on Friday; Brent Crude Oil up 1.70% at $93.74 per barrel while U.S. West Texas Intermediate (CLc1) up 1.96% at $87.69.

In the Cryptocurrency Markets, Bitcoin at 19970.00 up 1.40%, Ethereum up 0.39% at 1591.80, Litecoin at 57.05 down 0.78%, at the time of writing.

Top Market Segment to Watch Out Today:

Twitter Inc: Twitter Inc will launch a widely requested edit button for its paid subscribers in the coming weeks, the social media company said Thursday.

For years, Twitter (NYSE:TWTR) users have demanded the ability to edit their tweets after publishing in order to fix errors like typos. Those requests have led to jokes online that Twitter would rather introduce any other product, such as newsletters, before giving users their top-requested feature.

Economic News:

US: U.S. employers likely continued to hire workers at a strong clip in August while steadily raising wages, signs of persistent labor market strength that could encourage the Federal Reserve to deliver a third 75 basis point interest rate hike this month.

The Labor Department’s closely watched employment report on Friday would come a week after Fed Chair Jerome Powell warned Americans of a painful period of slow economic growth and possibly rising unemployment as the U.S. central bank aggressively tightens monetary policy to quell inflation.

The anticipated solid job growth last month would be further evidence the economy continues to expand even as gross domestic product contracted in the first half of the year. It is also a sign the Fed still needs to cool the labor market despite the front loading of rate hikes.

Nonfarm payrolls likely increased by 300,000 jobs last month after surging 528,000 in July, according to a Reuters survey of economists. That would mark the 20th straight month of job growth. While that would be the smallest increase in 16 months, it would still be way above the pre-pandemic average.

Eurozone: Britain’s prime minister in waiting Liz Truss models herself on Margaret Thatcher, judging by her photo ops echoing famous images of the country’s first female premier.

If Truss becomes leader of the ruling party on Monday as is widely expected, she’ll need all the grit and guile of the Iron Lady as she walks into a scene straight out of the 1980s: a looming recession, industrial unrest and urban decay.

In a sign of the times, an area straddling the River Mersey near Liverpool that was once an industrial heartland now has a less illustrious claim to fame: families there are seeking protection from creditors at the fastest rate in the country.

South of the river in Runcorn, where business parks and logistics centres stand alongside boarded up shops and churches asking for donations for desperate families, ex-soldier Eddie Thompson is taken aback by what has become of his hometown.

Top Economic Releases Today:

U.S. Nonfarm Payrolls (Aug) today at 8:30 this time estimated 300K, previously which was 528K.
CANADA Labor Productivity (QoQ) (Q2) today at 8:30 previously which was -0.50%.
GERMANY Trade Balance (Jul) today at 2:00 this time estimated 4.8B, previously which was 6.2B.
U.S. Unemployment Rate (Aug) today at 8:30 this time estimated 3.5%, previously which was 3.5%.
EURO ZONE PPI (MoM) (Jul) today at 5:00 this time estimated 2.5%, previously which was 1.1%.