hsbc

Dax 40 December futures momentum is clearly negative as we break the July low at 12380/360. Yesterday we made a high for the day only 35 ticks above first resistance at 12350/400 before prices collapsed as expected. We appear to have formed a 9 month descending triangle pattern & have broken the lower trend line. Yesterday we formed a bear flag so a break below 12000 is the next sell signal. FTSE 100 December futures held Monday's range so same levels apply for today but we are breaking lower over night. Remember when support is broken it usually acts as resistance & vice-versa. Update daily by 06:00 GMT. Today's Analysis. Dax December broke support at 13100/13000 for a sell signal, then 3 month trend line support at 12700/650 for another sell signal & now the July low at 12380/360 for a new sell signal. Yesterday we made a high for the day just above first resistance at 12350/400. Then we crashed below 100 month MA support at 12200/150. As I warned you, the last 3 times this MA was tested, it did not hold, in 2009, 2011 & 2020. So now we have broken below 12000 (not a surprise!) & could drop quickly to 11700/700. Gains are likely to be limited of course in the bear trend with resistance at 12100/12200. Shorts need stops above 12300. FTSE December hit 500 day moving average support at 7020/7000 but we have 2 year 38.2% Fibonacci support & June low at 6950/6910. Longs need stops below the 500 week moving average at 6850. A break lower is a major medium term sell signal. Bulls need a break above minor resistance at 7080/7100. A break higher meets strong resistance at 7160/80. Shorts need stops above 7210.

Stock index contracts are falling today as consumer sentiment declines. This time it's consumers from Europe's largest economy, Germany, where a record of pessimism has been set. Sentiment in Germany vs. DAX quotes Germany's GfK consumer climate index fell to -42.5 in October 2022 from -36.8 the previous month, reaching a new record low. This is the fourth consecutive decline, which was worse than market forecasts had predicted. The latest reading highlighted growing concerns over rising inflation and high energy prices, as well as persistent fears of recession, with income expectations falling to a new record low (down 22.4 points to -67.7), according to data released by GfK Group. Economic expectations also fell 4.3 points to -21.9, reaching their lowest level since May 2009. Meanwhile, willingness to buy fell 2.8 points to -19.5, the lowest level since October 2008, marking the eighth consecutive month of declines. "The current very high inflation rate of almost eight percent is leading to large losses in real income among consumers, and thus a significant reduction in purchasing power," - Rolf Bürkl, GfK consumer expert, said. Source: Conotoxia MT5, DE40, H4 With sentiment weakening, but also with increasing chances of further interest rate hikes whether in the United States or the Eurozone, as well as a perceived energy crisis looming this winter, the German DAX index's stock price has set new local lows. At 10:19 GMT+3, the DE40 was down 1.15 percent and at its lowest level since November 2020. That's when the markets were hit by the autumn wave of the covid outbreak, and moments later a new upward wave followed with news of a successful vaccine. Then the bottom was established in the 11500 point area, and it seems that it could be a potential support for DE40. London Stock Exchange quotes It is impossible not to mention the UK stock market, which seemed to defend itself from declines for a long time. Now, however, the FTSE100 index, too, may be heading south. The UK100 instrument on the Conotoxia MT5 platform is down 1 percent to 6898 points as of 10:23 GMT+3. This week, Britain's main index hit its lowest level since March 2022. Source: Conotoxia MT5, UK100, W1 The London Stock Exchange appears to be under pressure from lingering concerns about the country's economic outlook, exacerbated by a lack of commitment to fiscal discipline. The budget plan of the UK's new finance minister Kwasi Kwarteng, which includes historic tax cuts and a massive increase in debt, has been met with strong opposition from the International Monetary Fund and the Moody's rating agency. If it is implemented, it is possible that the UK could experience a rating cut. Did you know that CFDs allow you to trade on both falling and rising prices? Derivatives make it possible to open buy and sell positions and thus trade on both rising and falling quotes. At Conotoxia, you can choose from CFDs and DMA CFDs on more than 4,000 shares of companies listed on stock exchanges from all over the world. To find a CFD or DMA CFD on a stock, all you need to do is follow 4 simple steps: To access Trading Universe - a state-of-the-art hub of financial, information, investment and social products and services with a single Smart account, register here. Click "Platforms" in the "Invest&Forex" section.Choose one of the accounts: demo or live On the MT5 platform, search for the CFD action you are looking for and drag it into the chart window. Use the one-click trading option or open a new order with the right mouse button. Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Conotoxia investment service) Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results. Stock market news: Worse consumer sentiment and poor stock market sentiment (conotoxia.com)

AUDUSD grinds higher The Australian dollar finds support from strong CPI in Q3. From the daily chart’s perspective, sentiment remains extremely bearish and the latest rebound could be a mere flag-shaped consolidation near moving averages. The pair has met stiff selling pressure at the support-turned-resistance (0.6400). Its breach on a second attempt means that the bulls will be challenging 0.6540 before they could turn the mood around. Or a dip below 0.6300 could trigger a new round of sell-off below the critical floor at 0.6210.   XAUUSD attempts to bounce Bullion strengthens as a decline in US home prices weighs on Treasury yields. Gold saw bids at the previous low (1615) and a surge above 1660 may have prompted some short interests to cover. A rally fueled by profit-taking will not be enough to reverse the price action unless the precious metal secures follow-up buying. 1670 used to be a demand zone from a rally earlier this month and has become a key resistance. Its breach would carry the price to the previous high at 1730. A break below 1615 would push gold to 1570.   UK 100 tests resistance The FTSE 100 bounces as traders bet on a slowdown in the hiking cycle. The index has clawed back losses from previous sessions but the bias remains down. The price action is testing the supply zone between the 30-day moving average and the daily resistance at 7100 where strong pressure could be expected after the market edged into bearish territory. 6880 is a fresh support and 6820 the short-term bulls’ second line of defence. Their breach would invalidate the latest rebound and send the index below 6700.

USDCAD finds strong support The US dollar recovered after the Fed cautioned that rates could go higher than expectations. The rally has come to a halt in May 2020’s consolidation area. A combination of profit-taking and fresh selling has weighed on short-term sentiment. A tentative break below the daily support 1.3500 has put the bulls under pressure. A bearish breakout would force them to bail out and trigger a deeper correction below 1.3300. 1.3750 is the first resistance and the bulls will need to clear 1.3850 before the uptrend could resume. XAUUSD hits resistance Gold softened after the US dollar regained strength post-FOMC. After the price gave up all the gains from its rally in early October, the latest rebound met stiff selling pressure near the support-turned-resistance 1670. A long bearish wick suggests a rejection of this level. As wrong-footed traders scramble for the exit, 1618 is key in keeping the precious metal afloat. Its break would signal a bearish continuation in the days to come. 1645 is a fresh obstacle where the bears could be looking to double down on the prevailing pessimism. UK 100 struggles for support Equities turned south after the Fed sees a pause in tightening as premature. The FTSE reversed its course at a former support (7200) on the daily chart. The recent rally could use some breathing room after it broke above the daily resistance at 7100. After the RSI swung back into oversold territory, 7080 is the first level to gauge the strength of follow-up interests. The psychological level of 7000 would be an important support to keep the bulls interested. 7200 is a fresh peak and a bullish breakout would carry the index to 7330.

FTSE 100 December reversed from the 7190/7200 targeting minor support at 7170/50 then strong support at 7110/7090 with a low for the day exactly here. Longs need stops below 7070. Today's Analysis. Dax December broke the 3 week rising trend line, from the October recovery - a counter trend move. So it is likely that the 2022 bear trend has resumed. However best support at 13150/100 today. Holding here allows a recovery to first resistance at 13250/350. Shorts need stops above 13400. First support at 13150/100 but longs need stops below 13050. A break lower targets second 12950/900. A break below 12850 is a medium term sell signal & confirms the resumption of the bear trend. A weekly close below tomorrow night is further confirmation of course. FTSE December a low for the day exactly at strong support at 7110/7090. Longs need stops below 7070. A break lower is a sell signal targeting 7030/20 then 6970/60. Longs at strong support at 7110/7090 can target 7180/90.

Summary: HSBC has agreed to sell its Canadian operations to RBC. HSBC’s share price increased on Tuesday. RBC's acquisition represents the country's first significant domestic transaction in ten years. HSBC to sell its canadian operations to RBC As the lender curtails its global network outside of Asia in response to demands from its largest investor to separate, HSBC has agreed to sell its Canadian operations to Royal Bank of Canada for $10 billion. On hearing about the purchase, HSBC's shares increased by over 5%. The bank also indicated that it would return some of the proceeds to investors. With the acquisition, RBC gained 130 locations and more than 780,000 retail and business clients. If authorities accept the merger, RBC, who is now Canada's largest lender by assets, would strengthen its position. The biggest stakeholder at HSBC, the Chinese insurer Ping An, has been exerting consistent pressure on Quinn and chair Mark Tucker to separate the bank's Asian and western operations. In an era of hostile US-China geopolitics, Ping An has criticized the bank for years of subpar performance, chronically high costs, and a declining share price, arguing that the bank can no longer efficiently operate by straddling east and west. The sale in Canada comes after comparable divestitures of unprofitable consumer businesses in France and the US. When HSBC sold its French retail network to Cerberus for €1 last year, it suffered a $3 billion loss. The business was Canada's sixth-largest bank with assets of CAD134 billion, and RBC's acquisition of it represents the country's first significant domestic transaction in ten years. Most lenders have chosen to expand in the US instead of Canada due to concerns about competition in that country's highly consolidated banking sector. BNP Paribas and Bank of Montreal reached an agreement last year to sell the San Francisco-based Bank of the West for $16.3 billion. HSBC Price Chart Sources: ft.com, finance.yahoo.com

The Japanese Yen is set to strengthen during 2023, in the view of economists at HSBC. If the BoJ tweaks its monetary policy, the JPY may strengthen further “We believe the upward pressure on USD/JPY exerted by its yield differentials should cease when the Fed stops hiking.” “If the Bank of Japan tweaks its monetary policy (not our economists’ base case), the USD/JPY pair may fall even harder.” “A normalisation of extremes in valuation and improving Japan’s current account should also support the Japanese Yen.”

Bitcoin fell 5.2% last week to close at $22,400. Ethereum lost 4.4% to $1570. Other leading altcoins in the top 10 fell between 2.9% (XRP) and 11.5% (Polygon). The total capitalisation of the crypto market fell 5% over the week to $1.03 trillion, according to CoinMarketCap. Bitcoin's most significant drop last week came on Friday amid reports of the possible bankruptcy of Silvergate, a bank that services major cryptocurrency companies. The bank announced the closure of its cryptocurrency payment service. While BTCUSD has held up during furious sellers' attacks, it is in no hurry to bounce back from the bottom. Technically, the 50-week moving average continues to act as a valid resistance from which the selling intensifies. The Death Cross formed on the weekly timeframe makes for a cautious view of the near-term outlook and keeps the potential for a return to the $16.3-18.0 level. SEC chief Gary Gensler has warned cryptocurrency exchanges against failing to comply with custodian status According to media reports, global giant market-maker Citadel Securities plans to increase its stake in Silvergate Bank to help it out of its liquidity crisis. Other rumours suggest that Wells Fargo is a potential buyer. SEC chief Gary Gensler has warned cryptocurrency exchanges against failing to comply with custodian status. He said that if an exchange collapses, "customer funds often become the property of the bankrupt entity". Read next: Demand For Automotive Chips Will Continue To Grow As The Outlook For The Electric Vehicle Market Looks Solid| FXMAG.COM Brad Garlinghouse, CEO of Ripple, said that more and more cryptocurrency and fintech companies are leaving the US, which is stifling innovation in the country. Around 300 payment providers from 45 countries believe blockchain and cryptocurrencies can improve traditional finance, according to a survey conducted by Ripple. The UK's Nationwide Building Society and HSBC have imposed restrictions on card purchases of cryptocurrencies.

The SVB crisis triggered an avalanche of reactions throughout the world's banking system. Governments, financial institutions are doing what they can to minimize the damage. In addition to problems in the banking sextor, there will also be problems with food. In this article: In protection of SVB UK customer deposits The changes Food crisis Stablecoins In protection of SVB UK customer deposits HSBC on Monday announced a deal to buy the UK subsidiary of US tech lender Silicon Valley Bank, which collapsed on Friday. Plenty of potential buyers have made bids to buy SVB UK since the bankruptcy of its US parent company on Friday, amid widespread fears about the immediate future of many UK tech and life sciences start-ups. HSBC UK Bank has agreed to acquire SVB UK for £1 ($1.21). The assets and liabilities of the parent company SVB UK are excluded from the transaction. The sale, facilitated by the Bank of England in agreement with the UK Treasury, will protect SVB UK customer deposits. In addition, U.S. regulators on Sunday approved plans to protect depositors and financial institutions affiliated with U.S. parent company SVB. HSBC buys Silicon Valley Bank UK, protecting deposits https://t.co/FeR6RZEecF — Ted Kemp (@TedKempCNBC) March 13, 2023 The changes President Xi Jinping is preparing to change the financial bureaucracy, already replacing members of the shrinking reformist camp in the country. Surprisingly, PBOC Governor Yi Gang, a proponent of market reform who taught economics in the United States, remained in office despite reaching the official retirement age. However, his eventual replacement by someone more parochial like Zhu seems inevitable. From Breakingviews - China central bank punts its succession problem https://t.co/jfuJF2QIeG — Reuters Business (@ReutersBiz) March 13, 2023 Food crisis One year after Russia's invasion of Ukraine shook agricultural commodity markets, food prices remain high. Moreover, as the world's two largest exporters of wheat and other key crops enter their second year of war, many vulnerable countries continue to face heightened food insecurity. The IMF and other global institutions said in a recent Joint Statement on Food Security that governments and donors must increase support for the most vulnerable, facilitate trade and market functioning, and end harmful subsidies. Global food prices remain high even after dropping from the record level reached early last year on Russia’s invasion of Ukraine. See our Chart of the Week blog for more: https://t.co/70ubEeRD80 pic.twitter.com/xW8WoNi1Qk — IMF (@IMFNews) March 12, 2023 Stablecoins As the world of finance becomes increasingly digital, digital currencies are taking center stage in the financial sector. Stablecoins have gained considerable popularity in recent years thanks to their ability to provide the benefits of both digital currencies and traditional fiat currencies. Analyzing the percentage composition of the stablecoin portfolio among respondents holding stablecoins, the number of owners decreases as the size of the stablecoin portfolio increases. A survey of 392 stablecoin holders revealed that the most commonly held stablecoins are: USDT (80.3%), USDC (50%) and BUSD (50%). You can learn more about stablecoins from the summary of the survey. 1/ What are the most commonly held #stablecoins among stablecoin owners? 🪙Our recent survey with @lab_blockchain revealed that the most commonly owned stablecoins are: $USDT (80.3%), $USDC (50%) and $BUSD (50%).Read the full report: https://t.co/nBN8ufuKtQ pic.twitter.com/bMCTQLVzJ2 — CoinGecko (@coingecko) March 13, 2023