Technical Analysis Report By Our Expert – 07 September 2022
07 Sep 2022
ASIAN MARKETS SANK AFTER WEAK CHINESE TRADE DATA
Asian Pacific stock markets sank on Wednesday. The Shanghai Composite is down 0.01% at 3,242.96. Overall, the Singapore MSCI is down 1.07% at 285.30. Over in Hong Kong, the Hang Seng Index is down 1.56% at 18,839.00. In Japan, the Nikkei 225 is down 0.87% at 27,360.00, while the Topix index is down 0.65% at 1912.00. South Korea’s Kospi is down 1.55% at 2,372.62. Australia S&P/ASX 200 down 1.51% at 6723.10.
Top News of the Day:
Most Asian stock markets sank on Wednesday amid growing fears of more monetary policy tightening by the Fed, while weaker-than-expected Chinese trade data also weighed on sentiment.
Tech-heavy Taiwan and Hong Kong stocks were the worst performers in the region, losing 1.6% and 1.8%, respectively, amid jitters over rising U.S. interest rates.
Market Summary as per 06/09/2022:
European equities Tuesday closing. The DAX futures contract in Germany traded up 0.87% at 12,871.44, CAC 40 futures up 0.19% at 6104.62 and the UK 100 futures contract in the U.K. up 0.18% at 7,300.45.
In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.55% at 31145.31. The S&P 500 down 0.41% at 3908.20 and the Nasdaq 100 down 0.72% at 12011.31, NYSE closes down 0.39% at 14631.51.
Top Market News Today:
In the Forex market, GBPUSD down 0.29% at 1.1482. The USDJPY up 0.74% at 143.852. The USDCHF up 0.12% at 0.9844. EURUSD down 0.05% at 0.9897, EUR/GBP up 0.28% at 0.8620. The USD/CNY up 0.25% at 6.9720 at the time of writing.
In the Commodity market U.S. Gold futures down 0.37% at $1,695.15. Elsewhere, Silver futures down 0.33% at $17.919 per ounce, Platinum down 0.14% at $849.87 per ounce, and Palladium down 0.85% at $1987.90.
Crude Oil down on Wednesday; Brent Crude Oil down 1.51% at $91.37 per barrel while U.S. West Texas Intermediate (CLc1) down 1.81% at $84.99.
In the Cryptocurrency Markets, Bitcoin at 18555.00 down 0.43%, Ethereum down 4.00% at 1490.00, Litecoin at 53.85 down 0.43%, at the time of writing.
Top Market Segment to Watch Out Today:
CRUDE OIL: Oil prices fell more than $1 on Wednesday to their lowest since before Russia invaded Ukraine as COVID-19 curbs in top crude importer China and expectations of more interest rate hikes spurred worries of a global economic recession and lower fuel demand.
Brent crude futures fell $1.35, or 1.5%, to $91.48 a barrel by 0420 GMT after slipping 3% in the previous session. The contract hit a session low of $91.35, the lowest since Feb. 18. U.S. West Texas Intermediate crude futures shed $1.55, or 1.8%, to $85.33. The benchmark fell to a session low of $85.17, the lowest since Jan. 26.
US: The U.S. services industry picked up again in August for the second straight month amid stronger order growth and employment, while supply bottlenecks and price pressures eased, reinforcing the view that the economy was not in recession despite output sinking in the first half of the year.
The Institute for Supply Management said its non-manufacturing PMI edged up to a reading of 56.9 last month from 56.7 in July, the second consecutive monthly increase after three months of declines.
Economists polled by Reuters had forecast the non-manufacturing PMI decreasing to 54.9. A measure above 50 indicates expansion in the services sector, which comprises more than two-thirds of U.S. economic activity.
The growth in services followed the ISM’s manufacturing survey last Thursday, which also showed U.S. factory activity grew steadily last month, bucking a trend in other major economies and providing further evidence the economy was not in recession despite gross domestic product contracting in the first half of the year.
Eurozone: British construction companies suffered a second straight month of contraction in the face of deep uncertainty about the outlook for the inflation-hit economy, a survey showed on Tuesday.
The S&P Global/CIPS construction Purchasing Managers’ Index (PMI) came in at 49.2 in August, edging up from 48.9 in July but staying below the 50.0 threshold denoting growth.
Economists polled by Reuters had forecast a fall to 48.0.
New orders showed the weakest growth since June 2020 and concerns about the sector and the wider economy hit confidence, he said.
Job creation slowed but price pressures were their weakest since February 2021, a potential silver lining for the Bank of England as it monitors the impact of inflation in the labour market and the broader economy.
Top Economic Releases Today:
- U.S. Trade Balance (Jul) today at 08:30 this time estimated -70.30B, previously which was -79.60B.
- CANADA Ivey PMI (Aug) today at 10:00 this time estimated 48.30, previously which was 49.60.
- U.S. API Weekly Crude Oil Stock today at 16:30 previously which was 0.593M.
- JAPAN GDP (QoQ) (Q2) today at 19:50 this time estimated 0.70%, previously which was 0.50%.
- U.K. BoE Gov Bailey Speaks today at 05:30.
GBPUSD Technical Analysis
TRADE SUGGESTION- SELL AT 1.1474, TAKE PROFIT AT 1.1448 AND STOP LOSS AT 1.1497
EURUSD Technical Analysis
TRADE SUGGESTION- SELL AT 0.9889, TAKE PROFIT AT 0.9877 AND STOP LOSS AT 0.9900
USDJPY Technical Analysis
TRADE SUGGESTION- BUY AT 144.123, TAKE PROFIT AT 144.192 AND STOP LOSS AT 144.033
USDCHF Technical Analysis
TRADE SUGGESTION- BUY AT 0.9850, TAKE PROFIT AT 0.9870 AND STOP LOSS AT 0.9837
HANG SENG Technical Analysis
TRADE SUGGESTION- SELL AT 18792.00 TAKE PROFIT AT 18700.00 AND STOP LOSS AT 18875.00
WTI CRUDE OIL Technical Analysis
TRADE SUGGESTION- SELL AT 85.47 TAKE PROFIT AT 85.23 AND STOP LOSS AT 85.61
GOLD Technical Analysis
TRADE SUGGESTION- SELL AT 1697.02, TAKE PROFIT AT 1694.12 AND STOP AT 1700.00
LITECOIN Technical Analysis
TRADE SUGGESTION- SELL AT 52.27 TAKE PROFIT AT 50.85 AND STOP AT 52.95