Daily Market Report - Tuesday, Sep 27, 2022

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Global stock markets are under huge pressure and selling is going on. Wall Street and global stock markets hit hard on Monday. Markets are dumping because FED and other major central banks maintain an aggressive rate-hike strategy that could trigger a growth slowdown or a recession.

Moving ahead to the North American session, the investors and traders are waiting for the speeches from FOMC Chairman Jerome Powell and ECB President Christine Lagarde. On the other hand, investors should also closely monitor the release of the US durable goods orders and consumer confidence numbers.

EQUITIES

US futures and European shares slightly recovered on Tuesday morning and there have been decent moves to start the day so far with markets looking lively but all the attention remains on Federal Reserve Chair Jerome Powell's speech at an event in Paris.

OIL

Crude oil futures remain under pressure on Tuesday amid concerns over slower economic growth and lower energy demand. Meanwhile, both the brent and WTI futures slightly rebounded from the previous session lows. However, the overall momentum is expected to be bearish for the next few weeks as oil traders and Investors are worried the US Fed's aggressive rate hikes may lead to a recession and dampen oil demand.

CURRENCIES

In the currency market, the euro notched up small gains against a dollar after the previous sessions' sell-off while overall momentum remains bearish, focus shifted to the European Central Bank meeting President Christine Lagarde's speech. On Monday, the currency pair slumps to a fresh 20-year low of 0.9550.

GOLD

The safe-haven metal rebounded back to near $1640 on Tuesday morning after the US dollar paused for breath following a sharp rally. During the previous session, the metal plunged to the lowest levels since April 2020 as a firmer dollar and amid prospects of aggressive monetary policy tightening dented the safe-haven appeal of the precious metal.

Economic Outlook

On the data front, the latest German IFO survey suggests that the economy is headed for a sharp downturn. IFO research showed on Monday, the business confidence index fell sharply to 84.3 in September from 88.6 in August, the lowest since May 2020.

Moving ahead today, the important events to watch:

US – Durable goods orders: GMT – 12.30

US – CB consumer confidence: GMT – 14.00

US – New home sales: GMT – 14.00

Coronavirus update:

Worldwide, more than 614 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 96 million cases and has had more than 1.05 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
The currency pair remains under pressure a clear breakdown of the support at 0.9600 could open space for further declines while only recovery to 0.9810 would reverse the strong negative trend.



The important levels to watch for today: Support- 0.9600 and 0.9550 Resistance- 0.9670 and 0.9710.

GOLD: The precious metal slightly recovered. For today the resistance stays above $1742, break above the resistance level then $1748/53 easily looking but if not sustain then again come down up to support level $1630/26



The important levels to watch for today: Support- 1630 and 1626 Resistance- 1642 and 1650.

Quote of the day - This company looks cheap, that company looks cheap, but the overall economy could completely screw it up. The key is to wait. Sometimes the hardest thing to do is to do nothing. - David Tepper.

Read more - https://gulfbrokers.com/en/daily-market-report-560
 
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