North American News
Major stock indices close higher on the day. Dow closes above 200 day MA
- Materials and energy
The major stock indices are closing higher on the day with the Nasdaq leading the way.
- The major indices are off to a positive start for the week after 4 straight weeks of gains
- 9 or 11 sectors in the S&P moved higher with Energy (-1.9%) and materials (-0.1%) the only sectors to decline. Crude oil is down -$3.11 on the day. The consumer staples rose 1.0%
- The Dow is closing above the 200 day MA for the first time since April 20. The 200 day MA comes in at 32897.15. The price closed at 33191.45
A look at the closes shows:
- Dow industrial average is closing up 151.39 points or 0.45% at 31912.45
- S&P index is up 17.01 points or 0.40% at 4297.15
- NASDAQ index is up 80.80 points or 0.62% at 13128.06
- Russell 2000 is up 4.73 points or 0.23% at 2021.34
NAHB August US housing market index 49 vs 55 expected
- US homebuilder sentiment data for August 2022
- Prior was 55
- Current single-family home sales 57 vs 64 prior
- Sales over the next six months 47 vs 49 prior
- Index of prospective buyers 32 vs 37 prior
Commodities
Silver dives towards the 50-DMA, forming a bearish-engulfing candle pattern
- Silver price is upward biased from a monthly chart perspective.
- In the weekly chart, XAG/USD remains below its 200-week EMA, downward biased.
- XAG/USD daily chart illustrates silver as neutral-to-downwards, though a bearish-engulfing candle pattern suggests a leg-down is on the cards.
Silver price edges lower during Monday’s North American session, down by 2.40% courtesy of US dollar strength, despite falling US Treasury bond yields, ahead of the release of the last FOMC monetary policy minutes. At the time of writing, the XAG/USD formed a bearish-engulfing candle pattern, trading at $20.23.
Silver Price Analysis (XAG/USD): Technical outlook
The white metal outlook looks more positive than negative from a monthly chart perspective. July’s price action formed a dragonfly-doji in a crowded area with the 50, 100, and 200-monthly MAs lying around the $18.48-$20.17 region, which could pave the way for further gains. On the topside, the 20-month EMA at $23.81 might cap further XAG/USD gains.
Gold bulls struggle around 50 DMA on the road to recovery
- Gold Price breaches the critical 50 DMA at $1,782 despite falling yields.
- China data-led triggers risk-aversion, boosts the safe-haven US dollar.
- XAU/USD remains exposed to testing the bullish 21 DMA on a daily closing below 50 DMA.
Gold Price is deep in the red in the American session, as investors resort to ‘sell-everything mode amid broad risk-aversion.
The latest leg down in the yellow metal took out the critical 50-Daily Moving Average (DMA) at $1,782, as the selling pressure intensified after the US stocks opened lower.
Risk-off flows extended into American trading, as downbeat Chinese activity data accentuated concerns over the health of the global economy while investors remained wary about the size of the next Fed rate hike move in the coming months.
Decision on Iran nuclear deal expected before midnight Tehran time
- Important news in the oil market
WTI crude oil is down $4.80 to $87.73 today and a big reason why is speculation that the Iran nuclear deal could be revived. European circulated a draft deal last week, calling it the ‘final’ deal and framing it as take-it-or-leave-it.
I get the sense that Iran isn’t done negotiating as it wants guarantees that the US won’t leave the deal when there’s a change in the White House.
EU News
European equity close: No energy, no problem
- Euro slumps but European equities higher
Closing changes for the main European equity bourses:
- Stoxx 600 +0.25%
- German DAX +0.1%
- UK FTSE 100 +0.1%
- French CAC +0.2%
- Italy MIB +0.5%
- Spain IBEX +0.3%
German economy min: Have to swallow bitter medicine to make shift to new energy model
- Comments from Robert Habeck
- Russia-dependent energy model has failed and isn’t coming back
- Gas levy will secure supply
- Alternative to levy would have been collapse of German energy system
- Need targeted relief to help people with gas levy
More euro headwinds: TTF natural gas prices rise 10%. On track for highest-ever close
- Natural gas prices aren’t helping the euro
European benchmark TTF natural gas pries have extended today’s gain to 10.7% and that breaks the July 27 spike high. It’s the most-expensive level since a brief spike on March 7-8 and will be the highest close ever.
Other News
Risk assets put on a brave face as China slows
- The market is either complacent or not worried
US equities are near-flat on the day in a big improvement from the -30 point decline in pre-market futures. It’s another sign of the resilience of buyers.
It hasn’t been an easy day for the bulls as China was hit with a round of terrible economic data. That was coupled with a 10 bps rate cut and the market could be taking that as a sign of a backstop but 10 bps isn’t much to catch a falling property knife.
After the China data, the US numbers were just as bad. The Empire Fed was one of the worst ever and a gigantic miss on expectations while home builder sentiment continues to free fall.
Despite all that, the mood is steadily improving.
Cryptocurrency News
Why all eyes are on Ripple’s XRP price this week?
- XRP price has experienced a significant movement of tokens onto active wallets and exchanges.
- XRP price has printed classical bearish divergence in recent days.
- A breach above the $0.48 level would invalidate the bearish trend.
XRP price shows large cap investors may be considering liquidating their investments. Key levels have been identified.
XRP price edges near a make-or-break situation
XRP price continues to show concerning on-chain analysis signals. The previous XRP outlook reported a significant increase in daily active wallets. On Monday, U.Todays’ Yuri Mulchan confounded the on-chain analysis with a breaking news piece. According to the article Nearly 300 million tokens were transferred to exchanges. Whale Alert, the notorious crypto auditor, took to twitter with more information on the sudden movements on the blockchain. Apparently, 50,000,000 of the recent transactions were directly linked to XRP and transferred to an unknown wallet.