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Nairobi Securities Exchange
The Nairobi all-share index closed the previous trading session at 129.02, shedding 1.59%. The index has returned -22.49% year to date. The current 52-week range is 116.88 – 181.92.
The NSE 20 index closed yesterday’s trading session at 1733.77 and is currently trading at 1717.41, down 0.94%.
In the previous trading session, CABL led the gainers at 6.90%, closing at KES1.24 per share, while OCH came last, dropping 10% and closing at KES2.70 per share
In today’s early morning trading session, HAFR leads the gainers at 2.78%. EVRD has dropped 7.41% so far. KEGN leads the overall volume traded with 503,200 shares traded so far.
Global Markets
Asia
Japan’s finance minister has signalled his government’s readiness to intervene in the currency market again if the yen remains under pressure. Finance Minister Shunichi Suzuki pledged Tokyo last week to intervene in the foreign exchange market to prop up the yen for the first time in 24 years.
Taiwan’s central bank chief said on Thursday that there would be no foreign exchange controls during his term. “Foreign exchange control measures will not be implemented in the short term,” said Yang Chin-long when taking questions in parliament. Management measures are enough to keep market stability if there are significant capital outflows, he added.
China‘s Finance ministry plans to issue about 2.5 trillion yuan ($347.4 billion) in treasury bonds in the fourth quarter to help underpin the slowing economy, two sources have revealed. It also plans a $42bn support package in infrastructure loans, the Securities Times said on Thursday.
HSI dropped 2.30% in yesterday’s trading session. HK50 fell 2.77% in the last trading session. Sensex lost 1.03%. Nifty slid 1.05%, closing the day at 16817.65. Tokyo’s Nikkei fell 1.10%.
Asian stocks open slightly weak today. HSI is down 0.02%, and Nikkei is down 1.10% in the early morning trading session.
Europe
In less than a week, Chancellor Kwasi Kwarteng’s cavalier “mini” Budget has sent UK markets into a tailspin. The equally demoralising government reaction to the fallout means the country’s reputation will take a further beating. A hitherto Awol Liz Truss resurfaced in radio interviews on Thursday morning only to double down on Kwarteng’s historic tax-cutting agenda. She attributed the market turmoil to the war in Ukraine and global factors.
Europe’s top financial regulators have issued an unprecedented warning about “severe risks to financial stability” after concluding Russia’s invasion of Ukraine could create a toxic combination of an economic downturn, falling asset prices and financial market stress.
The European Systemic Risk Board, responsible for monitoring and preventing dangers to the region’s financial system, issued the alert after meeting last week and deciding the energy crisis triggered by the war in Ukraine had put the financial system in a precarious position.
German inflation soared to double-digit levels for the first time in more than 70 years, underlining the precarious state of Europe’s largest economy, which leading economists warned could shrink by up to 7.9 per cent next year in a worst-case scenario.
Euro Stoxx 50 futures dropped 2.60% in the previous trading session. EU50 fell 2.04%. UK100 lost 2.18%. Dax index futures fell 2.66%. DE30 lost 1.89%, closing the day at 384.22.
European stocks trade slightly higher today. Euro Stoxx 50 up 0.18% pre-market. Dax index futures up 0.03% pre-market.
US
While the U.S. central bank seeks to bring down stubbornly high inflation by tightening monetary policy and thus moderating demand, a deep recession isn’t warranted to curb inflationary pressures, San Francisco Fed President Mary Daly said in a speech Thursday at Boise State University. Still, Daly pointed out that a “downshift in economic activity” as well as rising unemployment will be needed to tame inflation in what the Federal Reserve hopes to be a soft landing.
Nike slid to a new low after posting a mixed FQ1 earnings report. A drop in revenue in Greater China (-16%) was more than offset by gains in the Asia Pacific & Latin America (+5%), North America (+13%) and Europe, Middle East, & Africa (+1%)
PepsiCo could take cost-cutting measures due to the economy.
Facebook, $META, announces hiring freeze and warns of restructuring.
SPX dropped 2.11%. QQQ fell 2.88%. DJI lost 1.54%. NDQ fell 2.86%
US Futures trade slightly high ahead of the market open. S&P 500 E- mini futures trades at +0.06% today. NASDAQ 100 E-mini futures trades at +0.13% today.
Key Events Today
Core PCE Price Index YoY (AUG). 15:30 EAT
PCE Price Index YoY. 15:30 EAT
Fed Barkin Speech. 15:30 EAT
Fed Brainard Speech. 16:00 EAT
Fed Mester Speech. 16:00 EAT
Fed Williams Speech.16:00 EAT
Fed Bowman Speech. 18:00 EAT
Fed Williams Speech. 23:15 EAT
Key Earnings
None
Crypto
BTC strengthened in yesterday’s trading session by using the previous day’s highs as support. BTC is above the daily ten ema, which is a good sign for bulls. A daily close above $20,200 will be crucial for BTC. A break of the level will indicate a break of supply from $68k highs. A break of supply on a high timeframe will lead to an aggressive move. If BTC closes the week on Sunday at the current levels, there will be confirmed bullish divergence. Traders are keeping an eye on the supply break and potential bullish divergence. BTC is yet to break the four-hour highs. It is consolidating under resistance at range highs indicating that chances of breaking out are higher than getting rejected at the moment. RSI retested the MA on the four-hour, forming a higher high. Buying pressure is increasing on BTC high time frames.
ETHBTC is still below the ten ema. It may double bottom at 0.675 support level and bounce. However, this seems unlikely since ETHBTC is consolidating above support which is bearish.
USDT.D is holding critical support. USDT.D formed a lower high on the daily chart for the first time in 38 days. USDT.D strength at the current levels is concerning considering the multiple drives of bearish divergence on high time frames.
Key Resistance Levels
19578 – 19634. CC and resistance zone and previous day high
20158. Previous highs
20426 – 20458. Daily level resistance and resistance zone
20885 – 21018. Daily level resistance and resistance zone
21880. Daily level resistance
22258 – 22530. Weekly level resistance and previous highs
Key Support Levels
19302 – 19227.5. Support zone
19121 – 19066. Support zone
18832. Naked point of control
18451. Naked point of control
17569. Weekly level support
Commodities
Gold gained 0.11% in the previous trading session. Gold is currently trading +0.38% today
USOIL lost 0.35% in yesterday’s trading session. USOIL is currently trading -0.50% today
UKOIL fell 0.42% % in the previous trading session. UKOIL is currently trading -0.07% today
Currencies
EURUSD is up 0.13% in today’s trading session
USDJPY is up 0.08% in today’s trading session
GBPUSD is up 0.36% in today’s trading session
USDCHF is up 0.01% in today’s trading session
USDCAD is up 0.14% in today’s trading session
AUDUSD is up 0.02% in today’s trading session
NZDUSD is down 0.06% in today’s trading session
AUDJPY is up 0.10% in today’s trading session
Related:
Daily Markets Update: 29th September 2022
Daily Markets Update: 28th September 2022
