DAILY ANALYSIS 30 September 2022

• US indices finished yesterday’s session significantly lower. S&P 500 dropped 2.11%, Dow Jones moved 1.54% lower and Nasdaq slumped 2.84%. Russell 2000 finished 2.35% lower
• Interestingly, declines came in spite of a weakening of the US dollar yesterday. US 10-year yields hold below 3.8%
• Indices from Asia-Pacific traded lower as well. Nikkei dropped 2.1%, S&P/ASX 200 moved 1.1% lower and Kospi traded 0.3% down. Indices from China traded 0.1-0.7% lower
• DAX futures point to a flat opening of the European cash session
• GBPUSD continued recovery and jumped above 1.11 handle, erasing most of declines made since ‘mini-budget’ announcement last Friday
• Local governments allowed for relaxation of mortgage rate limits in almost two dozen Chinese cities, in an attempt to support property market

• Fed Daly said that US interest rates got to neutral levels. She also said that a deep recession is neither warranted, nor necessary
• Chinese Caixin/Markit manufacturing PMI jumped from 49.4 to 50.1 in September (exp. 49.5) while services gauge dropped from 52.6 to 50.6 (exp. 52.4)
• Japanese industrial production increased 2.7% MoM in August (exp. 0.2% MoM). Retail sales increased 1.4% MoM (exp. 0.2% MoM)
• Japanese unemployment rate dropped from 2.6 to 2.5% in August (ex. 2.5%)
• Australian private sector credit increased 0.8% MoM in August (exp. 0.6% MoM)
• Cryptocurrencies are trading mostly higher today but the scale of moves is small. Bitcoin and Ethereum gain 0.2% each while Ripple lags and drops 1.5%
• Energy commodities are trading slightly lower with Brent dropping 0.3% and WTI moved 0.5% lower
• Precious metals trade higher – gold gains 0.4% while silver jumps 0.7%
• GBP and EUR are the best performing major currencies while NZD and CAD lag the most

Nasdaq-100 (US100) slumped yesterday but bulls managed to prevent a drop below the 11,200 pts support zone. However, price action recently has been ugly and another attempt at breaking below cannot be ruled out.