Technical Analysis Report By Our Expert

05 Sep

Technical Analysis Report By Our Expert – 05 September 2022

/ CSFX Analytics

OIL PRICES UP $2/bbl ahead of opec+ meeting

Asian Pacific markets fell after strong U.S. jobs data raised the prospect of more steep interest rate hikes by the Federal Reserve. The Shanghai Composite is up 0.19% at 3,192.47. Overall, the Singapore MSCI is up 0.52% at 288.65. Over in Hong Kong, the Hang Seng Index is down 1.28% at 19,143.00. In Japan, the Nikkei 225 is down 0.07% at 27,640.00, while the Topix index is up 0.16% at 1930.00. South Korea’s Kospi is down 0.24% at 2,403.68. Australia S&P/ASX 200 up 0.34% at 6852.20.

Top News of the Day:

Oil prices rose more than $2 a barrel on Monday, extending gains as investors eyed possible moves by OPEC+ producers to cut output and support prices at a meeting later in the day.

At their meeting later on Monday, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, may decide to keep current output levels or even cut production to bolster prices, despite supplies remaining tight.

Market Summary as per 02/09/2022:

European equities Friday closing. The DAX futures contract in Germany traded up 3.33% at 13,050.27, CAC 40 futures down 1.73% at 6061.03 and the UK 100 futures contract in the U.K. down 0.65% at 7,234.88.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 1.07% at 31318.45. The S&P 500 down 1.07% at 3924.27 and the Nasdaq 100 down 1.44% at 12098.44, NYSE closes down 0.56% at 14689.50.

Top Market News Today:

In the Forex market, GBPUSD down 0.32% at 1.1471. The USDJPY up 0.20% at 140.410. The USDCHF up 0.29% at 0.9832. EURUSD down 0.51% at 0.9900, EUR/GBP down 0.11% at 0.8632. The USD/CNY up 0.50% at 6.9330 at the time of writing.

In the Commodity market U.S. Gold futures down 0.07% at $1,710.16. Elsewhere, Silver futures up 0.22% at $18.078 per ounce, Platinum up 0.18% at $836.50 per ounce, and Palladium up 0.74% at $2037.50.

Crude Oil up on Monday; Brent Crude Oil up 2.19% at $95.34 per barrel while U.S. West Texas Intermediate (CLc1) up 2.01% at $88.54.

In the Cryptocurrency Markets, Bitcoin at 19650.00 down 0.63%, Ethereum up 0.88% at 1549.00, Litecoin at 59.81 down 1.77%, at the time of writing.

Top Market Segment to Watch Out Today:

U.S. dollar: The U.S. dollar touched a new 20-year high against a basket of currencies on Monday, benefiting from weakness in the euro amid a worsening energy crisis, while investors continued to bet on more interest rate hikes by the Federal Reserve.

Economic News:

US: The US economy continued to create jobs at a solid pace in August, but wages growth slowed and the unemployment rate ticked up surprisingly, adding to tentative signs of a slight cooling off of the labor market.

Nonfarm payrolls rose by 315,000 through the middle of the month, a slowdown from July’s 526,000 but clearly ahead of consensus forecasts for a 300,000 gain. Wage growth also eased by more than expected, with average hourly earnings rising only 0.3% rather than the 0.4% expected. That was down from 0.5% in July. As such, the annual rate of earnings growth stayed at 5.2%, well below the current rate of inflation.

The Labor Department’s monthly report also noted that the unemployment rate ticked up to 3.7% of the workforce from 3.5% in July, its highest level since February, but still close to historic lows.

“This growth brings total nonfarm employment 240,000 higher than its pre-pandemic level in February 2020,” the Labor Department said, citing “notable” job gains in professional and business services, health care, and the retail sector.

Eurozone: Russia’s service sector inched back into contraction in August, with broadly unchanged levels of output, a business survey showed on Monday, as consumer demand waned and firms reduced workforce numbers.

The S&P Global (NYSE:SPGI) Purchasing Managers’ Index (PMI) fell to 49.9 in August, down from 54.7 in July and slipping just below the 50 mark that separates contraction from expansion.

“Where service providers reported a decrease in output, this was linked to reduced purchasing power at some customers and the impact of sanctions,” S&P Global said in a statement.

New export orders fell sharply and firms reduced their workforce numbers, partly as a way to cut costs. Concerns over inflation and consumers’ purchasing power led to a reduction in business expectations, which slipped to their lowest in four months, but remained elevated on hopes of greater economic stability.

Top Economic Releases Today:

U.K. Services PMI (Aug) today at 4:30 this time estimated 52.50, previously which was 52.50.
JAPAN Household Spending (MoM) (Jul) today at 19:30 this time estimated -0.6%, previously which was 1.50%.
AUSTRALIA Current Account (Q2) today at 21:30 this time estimated 20.8B, previously which was 7.5B.
U.S. OPEC Meeting today at 6:00.
EURO ZONE Retail Sales (MoM) (Jul) today at 5:00 this time estimated 0.4%, previously which was -1.2%.