Technical Analysis Report By Our Expert – 06 September 2022

06 Sep 2022

             Asian Pacific markets down on Tuesday. The Shanghai Composite is up 1.14% at 3,236.63. Overall, the Singapore MSCI is down 0.28% at 287.95. Over in Hong Kong, the Hang Seng Index is down 0.08% at 19,135.00. In Japan, the Nikkei 225 is down 0.04% at 27,630.00, while the Topix index is down 0.13% at 1928.00. South Korea’s Kospi is up 0.18% at 2,408.05. Australia S&P/ASX 200 down 0.29% at 6832.50.

Top News of the Day:

Europe’s energy emergency deepened after Russia closed down the Nord Stream 1 pipeline to Germany late on Friday, raising fears that the continent will have to do without natural gas from its biggest supplier this winter. Russia attributed the shutdown to technical problems that required maintenance.

The developments make a deeper recession and a higher peak in inflation likely, with natural gas and electricity prices surging again and the euro falling to a new 20-year low against the dollar.

Market Summary as per 05/09/2022:

European equities Monday closing. The DAX futures contract in Germany traded down 2.22% at 12,760.78, CAC 40 futures down 1.20% at 6093.23 and the UK 100 futures contract in the U.K. up 0.09% at 7,287.42.

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 up 0.45% at 1.1568. The USDJPY up 0.35% at 141.054. The USDCHF flat at 0.9795. EURUSD up 0.29% at 0.9956, EUR/GBP down 0.14% at 0.8604. The USD/CNY up 0.11% at 6.9413 at the time of writing.

In the Commodity market U.S. Gold futures up 0.48% at $1,717.23. Elsewhere, Silver futures up 1.05% at $18.308 per ounce, Platinum up 0.41% at $848.00 per ounce, and Palladium up 1.30% at $2058.50.

Crude Oil down on Tuesday; Brent Crude Oil down 0.23% at $94.94 per barrel while U.S. West Texas Intermediate (CLc1) down 0.32% at $88.37.

In the Cryptocurrency Markets, Bitcoin at 19605.00 down 0.86%, Ethereum up 2.82% at 1662.90, Litecoin at 60.17 down 0.33%, at the time of writing.

Top Market Segment to Watch Out Today:

Bed Bath & Beyond’s: Bed Bath & Beyond’s (NASDAQ:BBBY) chief financial officer Gustavo Arnal committed suicide at the weekend, two days after the company announced a plan to close around a fifth of its stores and slash thousands of jobs.

Economic News:

US: New orders for U.S.-manufactured goods unexpectedly fell in July, weighed down by a plunge in defense aircraft bookings, but the overall manufacturing industry remains resilient.

The Commerce Department said on Friday that factory orders dropped 1.0% in July after increasing 1.8% in June.

Economists polled by Reuters had forecast factory orders would increase 0.2%. Orders increased 13.4% on a year-on-year basis in July.

The Institute for Supply Management said on Thursday manufacturing grew steadily in August as employment and new orders rebounded. July’s factory orders were mixed. Orders for computers and electronic products increased 0.8%. Orders for electrical equipment, appliances and components fell 1.2%.

There was also 0.7% drop in orders for transportation equipment, which reflected a 49.7% plunge in orders for defense aircraft and parts. Orders for machinery rose as did those for fabricated metal products.

Eurozone: Russia will respond to price caps on Russian oil by shipping more supply to Asia, its energy minister Nikolai Shulginov told reporters at the Eastern Economic Forum in Vladivostok on Tuesday.

“Any actions to impose a price cap will lead to deficit on (initiating countries’) own markets and will increase price volatility,” he said.

Finance ministers of the United States, Germany, Italy, Japan, Great Britain, France and Canada gave a green light last week to the idea of capping the price of Russian crude to reduce Moscow’s revenue in response to its invasion of Ukraine.

Before Russia sent tens of thousands of troops into Ukraine in February, around half of Russia’s crude and petroleum product exports went to Europe, according to the International Energy Agency.

Top Economic Releases Today:

AUSTRALIA RBA Interest Rate Decision (Sep) today at 00:30 this time estimated 2.35%, previously which was 1.85%.
GERMANY Factory Orders (MoM) (Jul) today at 02:00 this time estimated -0.5%, previously which was -0.30%.
U.K. Construction PMI (Aug) today at 04:30 this time estimated 48.00, previously which was 48.90.
U.S. ISM Non-Manufacturing PMI (Aug) today at 10:00 this time estimated 55.10, previously which was 56.70.
AUSTRALIA GDP (QoQ) (Q2) today at 21:30 this time estimated 1.0%, previously which was 0.8%.