Technical Analysis Report on Forex, Stocks, Crypto – 06 July 2022

06 Jul 2022

U.S. STOCK IS UNDER SELLING PRESSURE THIS YEAR WITH S&P 500 STEEPEST FIRST ½% DROP SINCE 1970

Asia-Pacific stocks were up on Wednesday morning. The Shanghai Composite is down 2.03% at 3,334.64. Overall, the Singapore MSCI is up 1.37% at 285.80. Over in Hong Kong, the Hang Seng Index is down 2.08% at 21,256. In Japan, the Nikkei 225 is down 1.29% at 26,000.00, while the Topix index is down 1.36% at 1848.50. South Korea’s Kospi is down 2.13% at 2,292.01. Australia S&P/ASX 200 down 0.52% at 6594.50.

Top News of the Day:

The S&P 500 ended slightly higher on Tuesday as investors kept their focus on the growth trajectory of the U.S. economy, and the tech-heavy Nasdaq closed higher while the Dow slipped.

U.S. stocks have been under relentless selling pressure this year, with the benchmark S&P 500 index recording its steepest first-half percentage drop since 1970, as the Federal Reserve moves away from easy-money policy by raising borrowing costs.

Market Summary as per 05/07/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded down 2.91% at 12,401.20, CAC 40 futures down 2.68% at 5794.95 and the UK 100 futures contract in the U.K. down 2.86% at 7,025.48.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.42% at 30967.83. The S&P 500 up 0.16% at 3831.38 and the Nasdaq 100 up 1.68% at 11779.90, NYSE closes down 0.94% at 14499.49.

Top Market News Today:

In the Forex market, GBPUSD up 0.08% at 1.1952. The USDJPY down 0.33% at 135.390. The USDCHF up 0.01% at 0.9681. EURUSD up 0.01% at 1.0265, EUR/GBP up 0.06% at 0.8588. The USD/CNY down 0.23% at 6.7043 at the time of writing.

In the Commodity market U.S. Gold futures up 0.21% at $1,768.96. Elsewhere, Silver futures down 0.44% at $19.124 per ounce, Platinum down 0.29% at $860.50 per ounce, and Palladium down 0.08% at $1935.00.

Crude Oil mix on Wednesday; Brent Crude Oil down 0.34% at $104.38 per barrel while U.S. West Texas Intermediate (CLc1) up 0.97% at $98.63.

In the Cryptocurrency Markets, Bitcoin at 19860.00 down 2.60%, Ethereum down 0.30% at 1128.96, Litecoin at 50.06 up 0.74%, at the time of writing.

Top Market Segment to Watch Out Today:

Shell: Shell (LON:RDSa) Plc said on Wednesday it would start building a renewable hydrogen plant in the Netherlands, which according to the energy giant will be Europe’s largest once it is operational in 2025. Shell said the 200-megawatt electrolyser, named Holland Hydrogen I, in the port of Rotterdam would produce up to 60,000 kilograms of renewable hydrogen per day.

Economic News:

US: A closely watched part of the U.S. Treasury yield curve inverted again on Tuesday, as investors continue to price in the chance that the Federal Reserve’s aggressive move to bring down inflation will push the economy into recession.

Yields on two-year Treasuries briefly rose above those of 10-year Treasuries for the third time this year, a phenomenon known as a yield curve inversion that has in the past preceded U.S. recessions.

It comes amid a chorus of growth warnings on Wall Street, as a Fed intent on bringing inflation down from more than 40-year highs sets the course for aggressive monetary policy tightening that investors fear will also hurt U.S. growth.

On Tuesday, yields on two-year Treasuries rose as high as 2.95%, while the 10-year stood at 2.94%. The two-year, five-year part of the curve also inverted for the first time since February 2020.

The inversions suggest that while investors expect higher short-term rates, they may be growing nervous about the Fed’s ability to control inflation without hurting growth, even though policymakers say they are confident in achieving a so-called “soft landing” for the economy.

Eurozone: British Prime Minister Boris Johnson was clinging to power on Wednesday, gravely wounded by the resignation of ministers who said he was not fit to govern and with a growing number of lawmakers calling for him to go.

Johnson’s finance and health secretaries quit on Tuesday, along with several in more junior roles, saying they could no longer stay in government after the latest in a series of scandals blighted his administration.

With mounting calls for Johnson to quit, he showed his determination to stay in office by appointing businessman and education minister Nadhim Zahawi as his new finance minister, and filling some of the other vacancies.

The level of hostility Johnson faces within his party will be laid bare later on Wednesday when he appears in parliament for his weekly question session, and before the chairs of select committees for a scheduled two-hour grilling.

Top Economic Releases Today:

U.K. Construction PMI (Jun) today at 4:30 this time estimated 55.00, previously which was 56.40.
EURO ZONE Retail Sales (MoM) (May) today at 5:00 this time estimated 0.4%, previously which was -1.3%.
AUSTRALIA Trade Balance (May) today at 21:30 this time estimated 10.725B, previously which was 10.495B.
U.S. API Weekly Crude Oil Stock today at 16:30 previously which was -3.799M.
GERMANY 10-Year Bund Auction today at 5:30 previously which was 1.330%.