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Asian shares rose on Tuesday morning after China pledged to make renewed efforts to boost its economy on Monday, while investors pinned hope on more clarity ahead of a number of central bank meetings.
US equity futures rose on Tuesday amid a dip in the dollar, as sentiment continued to be tested by central banks tightening monetary policy and Europe’s energy crisis.
An early advance in MSCI Inc.’s Asia gauge fizzled as gains evaporated in Japan and Hong Kong while China gained. S&P 500 futures pushed higher but off the peak ahead of the resumption of Wall Street trading after a holiday. European contracts edged lower. Treasuries dipped across the curve, taking the 10-year yield to 3.21%.
Chinese policymakers signalled a renewed sense of urgency on Monday for steps to shore up a flagging economy, saying this quarter was a critical time for policy action as evidence pointed to a further loss of economic momentum.
China also cut a foreign exchange reserves ratio to support the yuan – another signal authorities are uncomfortable with the currency’s slide.
The European Central Bank will meet on Thursday to discuss rate actions, followed by a U.S. Federal Reserve meeting on Sept. 21.
E-mini futures for the S&P 500 index rose 0.68% in the Asian morning session, indicating a rosy start for Wall Street on Tuesday. U.S. markets were shut on Monday for the Labour Day holiday.
European stock indexes fell on Monday, the euro dropped below 99 cents for the first time in twenty years and European gas prices surged after Russia said its main gas supply pipeline to Europe would stay shut.
Oil prices slipped early on Tuesday, paring the previous session’s 3% gain, as a deal among members of the OPEC+ group to cut output by 100,000 barrels per day in October was seen as a largely symbolic move to stem the market’s recent slide.
Brent crude futures fell 0.47% to $95.29 a barrel at 0149 GMT. U.S. crude futures however rose 2.44% to $88.99 a barrel.
Russia’s Reality
Russia may face a longer and deeper recession as the impact of US and European sanctions spreads, handicapping sectors that the country has relied on for years to power its economy, according to an internal report prepared for the government, seen by Bloomberg. The document, the result of months of work by officials and experts trying to assess the true impact of Russia’s economic isolation due to President Vladimir Putin’s invasion of Ukraine, paints a far more dire picture than officials usually do in their upbeat public pronouncements.
FTSE100 live outlook prediction analysis for 6th September 2022
With the USA closed for Labor Day yesterday we got the usual slow drift up and the bulls managed to pop through the 7270 level but not get too much higher. Overnight we have dropped back from the 7300 level however, we may well follow the ASX200 pattern and have an initial rise and then a drop back. That may well tally with an energy bill support announcement from the new PM, Liz Truss. Would be a good thing to do on day 1 of her premiership.
Initial support is at the 200ema and the daily pivot at the 7255 level, and as such we could see a climb from here to start with. The 30m coral remains green (uptrend) for the moment as does the 2h chart being bullish with support down at 7180.
Below the 7255 daily pivot then the bears will be looking to take the price down to the S1 level at 7216, and we also have the key fib at 7210 for support here as well. Should it drop to there then we could see a bounce at this area.
The daily chart is bearish still and has 25ema at 7371 for resistance and a possible swing short level. That could match up with a bit more upside on the S&P before that possibly drops off a bit as well. 4058 is the daily chart short area to keep an eye on where we have the current 25ema on that.
Initial resistance on the FTSE100 is at the 7309 level where we have the key fib so we could see a stutter here though I am thinking that if the bulls get a decent start then a rise towards the R1 level at 7325 may well play out. I think the FTSE100 will want to push up a bit to start with just to support the change of PM. Not a good sign if it tanks on day 1 and there is often a lot to do with the optics of these things!
S&P500
With the S&P500 returning from its holiday yesterday then we may well see a rise and dip on that as well as a bit of bear Tuesday kicks in later on. The 30m chart has support to start with at 3932 with a green coral here, 3936 is also the daily pivot. We are on this as I write this, so a climb to 3962 to start with a test of the key fib and R2, along with the 30m 200ema would make sense. Lower support is at 3925 for S1 and then 3910 for the key fib. We could see a drop down to that S1 later on.
Good luck today.
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