Technical Analysis Report By Our Expert – 30 August 2022

30 Aug 2022

Asian Pacific markets were mixed as concerns over a hawkish U.S. Federal Reserve persisted. The Shanghai Composite is down 0.75% at 3,216.42. Overall, the Singapore MSCI is up 0.55% at 291.40. Over in Hong Kong, the Hang Seng Index is down 1.44% at 19,739.00. In Japan, the Nikkei 225 is up 1.04% at 28,200.00, while the Topix index is up 1.21% at 1968.00. South Korea’s Kospi is up 0.94% at 2,449.34. Australia S&P/ASX 200 down 0.67% at 4030.60.

Top News of the Day:

Oil prices dipped on Tuesday, paring some gains from the previous session, as the market feared that more aggressive interest rates hike from central banks may lead to a global economic slowdown and soften fuel demand.

Inflation is near double-digit territory in many of the world’s biggest economies, a level not seen in close to a half-century, which could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes.

Market Summary as per 29/08/2022:

European equities Monday closing. The DAX futures contract in Germany traded down 0.61% at 12,892.99, CAC 40 futures down 0.83% at 6222.29 and the UK 100 futures contract in the U.K. down 0.70% at 7,427.32.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.57% at 32099.00. The S&P 500 down 0.67% at 4030.60 and the Nasdaq 100 down 0.96% at 12484.32, NYSE closes down 0.39% at 15118.84.

Top Market News Today:

In the Forex market, GBPUSD down 0.02% at 1.1704. The USDJPY down 0.20% at 138.416. The USDCHF down 0.02% at 0.9672. EURUSD up 0.10% at 1.0004, EUR/GBP up 0.10% at 0.8545. The USD/CNY up 0.12% at 6.916 at the time of writing.

In the Commodity market U.S. Gold futures down 0.07% at $1,735.50. Elsewhere, Silver futures down 0.11% at $18.712 per ounce, Platinum down 0.87% at $857.50 per ounce, and Palladium up 0.12% at $2151.00.

Crude Oil down on Tuesday; Brent Crude Oil down 0.54% at $104.48 per barrel while U.S. West Texas Intermediate (CLc1) down 0.06% at $96.42.

In the Cryptocurrency Markets, Bitcoin at 20305.00 up 1.70%, Ethereum up 1.78% at 1582.00, Litecoin at 55.64 down 0.27%, at the time of writing.

Top Market Segment to Watch Out Today:

TOYOTA: Toyota Motor (NYSE:TM) Corp said on Tuesday its July global vehicle production fell 8.6% year-on-year, missing its target for four straight months, as COVID outbreaks, severe weather and a recall probe on top of a persistent chip shortage hurt output.

The world’s largest automaker by sales produced 706,547 vehicles worldwide last month, below its target of around 800,000 units and the year-ago output of 773,135.

Economic News:

US: Senate Republican Leader Mitch McConnell said the US is likely to tip into a recession as the Federal Reserve raises interest rates to combat historic inflation, which he blamed on Democrats’ spending.

McConnell said the answer for the economy is greater fiscal austerity and that Republicans will serve as a check on any big spending plans by President Joe Biden if they win one or both chambers of Congress in November’s midterm elections.

The Kentucky Republican pointed to Democrats’ nearly $2 trillion Covid relief package last year as the driver behind price surges, which he said are “likely to lead next to a recession because the Fed will end up raising interest rates.”

The central bank is raising interest rates rapidly to curb the hottest price pressures in 40 years. US consumer prices rose 8.5% in the 12 months through July, according to Labor Department data.

Eurozone: The European Commission said on Monday it fully stood by its proposal to approve Poland’s recovery plan after four associations of European judges asked the EU court to annul it, because the program disregarded earlier EU court judgements.

On the basis of the Commission’s contested recommendation, EU finance ministers approved Poland’s recovery plan in June, paving the way for the disbursement of some 35 billion euros ($34.99 billion) in grants and loans to Warsaw, once it fulfils some conditions.

But four associations of European judges – the Association of European Administrative Judges, the European Association of Judges, Richters Voor Richters, and Magistrates Européens pour la Démocratie et les Libertés – asked the EU General Court on Sunday to annul the ministers’ and the Commission’s decisions.

The associations say the Commission’s recommendation and the ministers’ subsequent approval should be scrapped because EU’s top court ruled in July 2021 that Polish judges, suspended as a result of unlawful changes made to the judiciary by Poland’s nationalist government, should be reinstated immediately.

Top Economic Releases Today:

GERMANY CPI (MoM) (Aug) today at 8:00 this time estimated 0.30%, previously which was 0.90%.
U.S. JOLTs Job Openings (Jul) today at 10:00 this time estimated 10.475M, which was 10.698M.
CANADA Current Account (Q2) today at 8:30 this time estimated 6.6B, previously which was 5.0B.
JAPAN Retail Sales (YoY) (Jul) today at 19:50 this time estimated 1.9%, previously which was 1.5%.
AUSTRALIA Construction Work Done (QoQ) (Q2) today at 21:30 this time estimated 0.9%, previously which was -0.9%.