DAILY ANALYSIS 11 AUGUST 2022

  • US indices finished yesterday’s session higher. S&P 500 jumped 2.13%, Dow Jones moved 1.63% higher while Nasdaq surged 2.89%. Russell 2000 added 2.95%
  • Indices from Asia-Pacific traded mostly higher today. S&P/ASX 200 rose 0.94% while Kospi jumped 1.28%. Indices from China traded higher. Traders from Japan were off for holiday
  • DAX futures point to a higher opening of the European cash session
  • President Biden has set aside the option of scrapping some China tariffs for now
  • Goldman Sachs is  not expecting core inflation to come down much from current levels.
  • Microsoft is lowering number of contractors and stops hiring new employees
  • Pelosi said that the Inflation Reduction Act should be passed on Friday
  • Fed’s Daly said that despite upbeat CPI report, central bank is not near done yet in battle against inflation
  • Australian August consumer inflation expectations fell to 5.9% from 6.3% in July
  • Chinese city of Yiwu imposes an entire city lockdown for three days starting from today
  • Cryptocurrencies are trading higher today. Bitcoin rose 3.4% and Ethereum jumped nearly 2.5%
  • Oil is trading slightly higher. WTI trades near $91.50 per barrel while Brent is testing $97.00 mark
  • Downbeat moods prevail on the precious metals market. Gold trades 0.40% lower and silver dropped 0.70%
  • USD and CAD are the best performing major currencies while JPY and GBP lag the most
  • US500 managed to break above the major resistance zone around 4190 pts. If current sentiment prevails, the next target for buyers is the downward trendline which coincides with the 200 SMA
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DAILY ANALYSIS 10 AUGUST 2022

US indices finished yesterday’s session lower. S&P 500 dropped 0.42%, Dow Jones moved 0.18% lower while Nasdaq fell 1.19%. Russell 2000 plunged 1.66%

Indices from Asia-Pacific traded mostly lower today. Nikkei fell 0.74%, S&P/ASX 200 lost 0.32% while Kospi dropped 0.70%. Indices from China traded lower.

DAX futures point to a slightly higher opening of the European cash session

China July CPI 2.7% y/y below analysts’ estimates of 2.9%

Elon Musk sold 7.92 million shares in Tesla worth $ 6.9 billion according to SEC filings.

China implemented partial lockdowns in Xinjiang

Fed’s Bullard says it’s too early to claim inflation has peaked

Cryptocurrencies are trading lower today. Bitcoin fell 1.5% and Ethereum lost nearly 2.0%

Oil is trading over 0.60% lower. WTI trades near $90.00 per barrel while Brent is testing $95.85 mark

Downbeat moods prevail on the precious metals market. Gold trades 0.40% lower and silver dropped 0.50%

JPY and NZD are the best performing major currencies while AUD and CHF lag the most

US500 once again failed to break above the major resistance zone around 4190 pts. Source: xStation5

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Read more DAILY ANALYSIS 09 AUGUST 2022

US indices finished yesterday’s session mixed. S&P 500 dropped 0.12%, Dow Jones moved 0.09% lower while Nasdaq fell 0.10%. Russell 2000 jumped 1.01%

Indices from Asia-Pacific traded mostly higher today. S&P/ASX 200 added 0.02% while Kospi rose 0.44%. Indices from China traded higher. Nikkei underperformed and fell 0.94%

DAX futures point to a lower opening of the European cash session

Russia will no longer cooperate with US inspections of its nuclear arsenals under the New START control treaty

Taiwan’s foreign minister says China’s military exercises are preparation for an invasion

Goldman Sachs sees tactical upside risk for USD/JPY towards 140 in the near-term

Reports of explosion at Google data center in Iowa

China’s financial (state-sponsored) media said the People’s Bank of China is unlikely to lower interest rates or the Reserve Requirement Ration (RRR).

Australian weekly consumer confidence index fell to -4.5%, lowest since April 2020

The RBA launched a one-year research program into CBDC

Cryptocurrencies are trading slightly higher today with Bitcoin adding 0.4% and Ethereum rallying 0.8%

Oil is trading over 0.15% higher. WTI trades near $90.62 per barrel while Brent is testing $96.40 mark

Mixed moods prevail on precious metals market. Gold trades 0.14% lower but silver gains 0.12%

JPY and GBP are the best performing major currencies while NZD and USD lag the most

AUDUSD strengthened on Monday, however buyers failed to break above upper limit of the wedge formation and today we can observe slight pullback. Source: xStation5

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Read more DAILY ANALISIS 08 AUGUST 2022

Indices from Asia-Pacific traded higher today. Nikkei gained 0.28%, S&P/ASX 200 added 0.1% while Kospi moved 0.05% higher. Indices from China traded mixed
DAX futures point to a higher opening of the European cash session

US index futures trade slightly above Friday’s cash close

US Senate passed the ‘inflation reduction’ act

Moody’s has cut Italy’s outlook to ‘negative’ from ‘stable’

Goldman Sachs predict +50 bp rate hike in September, while JP Morgan expects +75bp

Fed’s Bowman said +75 bp increases should be on the table until seen inflation declining

China’s exports in June topped analysts’ estimates and grew at their fastest this year

China says will continue military drills around Taiwan today

RBNZ one year inflation expectations rose to 4.86% and 2 year to 3.07%

Mixed moods prevail on the cryptocurrencies market at the start of a new week. Bitcoin rose 0.4% while Ethereum trades 0.9% higher

Oil rebounded today. Brent trades 1.4% higher while WTI rose 1.5%

Precious metals drop in spite of USD weakness. Gold trades 0.1% lower near $1,772 per ounce

NZD and EUR are the best performing major currencies while USD and JPY lag the most

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NZDUSD pair rose slightly after the RBNZ inflation expectations data and is testing major support at 0.6245. Source: xStation5

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DAILY ANALISIS 05 AUGUST 2022

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US indices finished yesterday’s session slightly lower. However, tech stocks managed to gain. S&P 500 dropped 0.08%, Dow Jones moved 0.26% lower while Nasdaq gained 0.41%. Russell 2000 dropped 0.13%

Indices from Asia-Pacific traded higher today. Nikkei gained 0.8%, S&P/ASX 200 added 0.5% while Kospi moved 0.9% higher. Indices from China traded mixed

DAX futures point to a flat opening of the European cash session

China has reportedly blocked shipments to Taiwanese iPhone assembler Pegatron. The move is said to be retaliation for Pegatron’s executives meeting with US House Speaker Nancy Pelosi

According to Reuters report, Saudi Arabia and United Arab Emirates still have some spare oil production capacity but are unlikely to tap into it unless a major energy crisis occurs during winter

Japan demanded China halts its military drills immediately after 4 Chinese ballistic missiles were fired into Japan’s exclusive economic zone

RBA Monetary Policy Statement for August showed that the Bank is ready to do what is necessary to bring inflation to 2-3% range. However, document also noted that there is a narrow path to restraining inflation without hurting economy

Japanese household spending increased 3.5% YoY in June (exp. 1.0% YoY)

Reserve Bank of India delivered a 50 basis point rate hike, to 5.40% (exp. 5.25%)

Cryptocurrencies are trading higher today with Bitcoin adding 2.6% and Ethereum rallying 4%

Oil is trading over 1% higher. WTI trades near $89 per barrel while Brent is testing $94.50 mark

Precious metals gain in spite of USD strength. Gold trades flat but silver (+0.5%) and platinum (+0.8%) gain

USD and CAD are the best performing major currencies while JPY and CHF lag the most

Brent (OIL) plunged to the lowest level since February 25, 2022 yesterday as recession fears continue to exert pressure on crude. An attempt to launch a recovery move can be observed this morning although the scale of moves looks small compared to

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DAILY ANALISIS 04 AUGUST 2022

  • After a brief pause, US indices resumed an upward move yesterday. S&P 500 gained 1.56%, Dow Jones added 1.29% while Nasdaq surged 2.59%. Russell 2000 traded 1.41% higher
  • Upbeat moods could be spotted during the Asian session as well. Nikkei gained 0.6%, S&P/ASX 200 traded 0.1% higher and Kospi added 0.5%. Indices from China traded up to 0.6% higher
  • DAX futures point to a slightly higher opening of the European cash session
  • China began military drills around Taiwan. Taiwan said it deployed missile systems and is tracking movement of Chinese military plans
  • US Senate approved Finland and Sweden bid to join NATO
  • According to Nikkei report, China plans to inject 320 billion CNY (~$47 billion) into small and medium-sized banks amid a spike in non-performing loans resulting from lockdowns and property sector collapse
  • According to Bloomberg report, high and unusual activity at El Hamra oil terminal in Egypt suggests that Russia is using it to bypass Western sanctions
  • Freeport LNG terminal in Texas, that was shut down in June due to explosion, will resume operations at full capacity in October
  • Cryptocurrencies trade mixed – Bitcoin drops 0.8% while Ethereum gains 0.9%
  • Oil is trading a touch lower. Brent drops 0.3% and moves below $97 per barrel
  • Precious metals post small gains. Gold gains 0.4%, silver adds 0.2% while platinum trades flat
  • NZD and AUD are the best performing major currencies while JPY and CHF lag the most

S&P 500 (US500) retested the 4,100 pts area as a support but bulls managed to defend the zone. Index is testing the upper limit of the market geometry following yesterday’s rally. Source: xStation5

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DAILY ANALISIS 03 AUGUST 2022

US indices finished yesterday’s trading lower after a volatile session. S&P 500 dropped 0.67%, Dow Jones moved 1.23% lower and Nasdaq dipped 0.16%. Russell 2000 dropped 0.05%

Pullback on the stock market was accompanied by a sell-off on US bond markets. US 10-year Treasury yields jumped 17 basis point yesterday, to 2.75%

Moods deteriorated yesterday in the evening after China said it will hold live fire drills around Taiwan. Chinese state media said that People’s Liberation Army will exercise “liberating Taiwan”

Moods during the Asian session were mixed – S&P/ASX 200 dropped, Nikkei and Kospi gained while indices from China traded mixed

DAX futures point to a more or less flat opening of the European cash session today

Japanese officials reported that there was movement of Russian navy in recent days suggesting that Russian ships may join Chinese navy in exercises near Taiwan

China has also banned imports of over 2,000 food products from Taiwan and suspended exports of natural sand and gravel to the island

The Chinese UK ambassador warned UK politicians not to visit Taiwan as it would have serious consequences for China-UK relations. Warning came after Guardian reported that group of UK MPs plan to visit Taiwan later this year

Fed’s Bullard said that it looks like both Fed and ECB will be able to rein in inflation and achieve soft landing

API report pointed to a 2.16 million barrel build in US oil inventories (exp. -0.4 mb)

Major cryptocurrencies are trading mixed – Bitcoin drops 0.7%, Ethereum moves 1.7% lower and Ripple dips 1.9%

Oil is trading higher today. Brent gains 1% and climbs back above $100 per barrel mark

Precious metals benefit from USD weakness – gold and silver gain 0.5% each

AUD and EUR are the best performing G10 currencies while USD, GBP and JPY lag the most

S&P 500 (US500) snapped a 3-day winning streak this month and traded lower for the second day in a row yesterday. Index is retesting a 4,100 pts price zone, this time as a support. Note that reversal occurred just slightly below the upper limit of the Overbalance structure, hinting that downtrend remains in play.

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