Technical Analysis with Candlestick Charts – 01 April 2022

01 Apr 2022

Labour Report : Ticking Lower Unemployment, Skyrocketing Wages

Asia Pacific stocks mixed on Friday morning. The Shanghai Composite is up 0.65% at 3,273.42. Overall, the Singapore MSCI is down 0.72% at 332.45. Over in Hong Kong, the Hang Seng Index down 0.92% at 21,788.00. In Japan, the Nikkei 225 is down 0.50% at 27,690.00, while the Topix index is down 0.05% at 1945.50. South Korea’s Kospi down 0.65% to 2739.24. Australia S&P/ASX 200 down 0.08% at 7493.80.

Top News of the Day:

The riding factor of the market on Friday will be the Labor Department report that will show that close to half a million U.S. jobs were added last month, with the unemployment rate ticking lower while wage growth accelerated.

Market Summary as per 31/03/2022:

European equities Thursday closing. The DAX futures contract in Germany traded down 1.31% at 14,414.75, CAC 40 futures down 1.21% at 6659.88 and the UK 100 futures contract in the U.K. down 0.83% at 7,515.68.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 1.56% at 34678.36. The S&P 500 down 1.57% at 4530.42 and the Nasdaq 100 down 1.55% at 14838.49, NYSE closes down 1.55% at 16670.90.

Top Market News Today:

In the Forex market, GBPUSD up 0.03% at 1.3138. The USDJPY up 0.59% at 122.372. The USDCHF up 0.12% at 0.9236. EURUSD up 0.04% at 1.1070, EUR/GBP up 0.08% at 0.8426. The USD/CNY up 0.14% at 6.3508 at the time of writing.

In the Commodity market U.S. Gold futures up 0.01% at $1,936.49. Elsewhere, Silver futures up 0.11% at $24.786 per ounce, Platinum up 0.61% at $989.00 per ounce, and Palladium up 2.85% at $2327.50.

Crude Oil down on Friday; Brent crude oil down 2.00% at $102.88 per barrel while U.S. West Texas Intermediate (CLc1) down 2.33% at $97.79.

In the Cryptocurrency Markets, Bitcoin at 44638.00 down 1.94%, Ethereum down 0.99% at 3250.15, Litecoin at 121.67 down 1.53%, at the time of writing.

Top Market Segment to Watch Out Today:

U.S. 10 Yr. T-NOTE: A key part of the U.S. yield curve inverted on Friday morning in Asia, the second time in a few hours, according to Tradeweb data, as the two-year U.S. Treasury note yield rose above the benchmark 10-year yield.

That part of the yield curve inverted on Tuesday for the first time since September 2019. It inverted again late in U.S. trade on Thursday. An inversion of the two-year, 10-year part of the curve is viewed by many as a signal a recession is likely to follow in one to two years.

Economic News:

US: U.S. consumer spending slowed sharply in February as the effect of pandemic-driven stimulus programs faded and high inflation started to bite.

Personal spending rose only 0.2% on the month, down from an upwardly revised 2.7% in January, according to figures released by the Bureau of Economic Analysis. That was comfortably below expectations for a 0.5% rise. That was despite the fact that personal income rose a more respectable 0.5%, in a month when the effects of the winter wave of Covid-19 had already peaked.

At the same time, the data series widely seen as the Federal Reserve’s preferred measure of inflation posted another chunky increase, with the index for personal consumer expenditures rising 0.6% on the month, taking the annual rate to 6.4%. The core rate of PCE inflation rose to 5.2%, both figures representing 40-year highs.

The numbers provided fresh evidence of consumer spending reverting to more normal patterns, after two years punctuated by lockdowns and dominated by working-from-home pushed spending in the direction of home improvements and electronic appliances. The strongest gains were seen in food services and accommodation, along with recreation. By contrast, spending declined most on motor vehicles and parts, and on furnishings.

Eurozone: A top U.S. banking regulator told banks on Thursday to be more vigilant about guarding against unlikely but extreme risk as Russia’s invasion of Ukraine and the surge in crypto trading has created a range of new of new financial threats.

Michael Hsu, the acting comptroller of the currency, said depending on the outcome of the war in Ukraine, banks could face a number of “tail risks,” unlikely but extreme risk events.

He cited the potential spread of the conflict in Europe, Russian cyber-attacks, and further surging inflation as risks banks need to stay on top of with internal scenario testing.

Top Economic Releases Today:

GERMANY Manufacturing PMI (Mar) today at 3:55 this time estimated 57.60, previously which was 57.60.
EURO ZONE CPI (YoY) (Mar) today at 5:00 this time estimated 6.6%, previously which was 5.9%.
U.S. Nonfarm Payrolls (Mar) today at 8:30 this time estimated 490K, previously which was 678K.
RUSSIA Markit Manufacturing PMI (Mar) today at 2:00 previously which was 48.60.
U.S. Average Hourly Earnings (YoY) (Mar) today at 8:30 this time estimated 5.5%, previously which was 5.1%.