Tesla (TSLA) fell 3.21%, TripAdvisor (TRIP) slid 6.41%, and Southwest Airlines (LUV) dropped 4.71%

Tesla (TSLA) slumped 8.88% after the electric-car maker offered a higher discount of $7,500 on Model 3 and Model Y vehicles in the U.S
DAILY MARKET NEWSLETTER
December 8, 2022
 
 
   
 
Pre-Market Session
News Sentiment
Technical Views
 
 
 
EUR/USD   Euro Stoxx 50 (Eurex)   Brent (ICE)  
 
 
 
 
  Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.
 
 
     
 
Price Movement Analyst Views Target Pivot
 
Dax (Eurex) 14,235.00
-42.00 (-0.29%)
Bearish Read the analysis
14,210.00
14,357.00
 
 
FTSE 100 (ICE Europe) 0.00
0.00 (0.00%)
Bearish Read the analysis
7,481.00
7,526.00
 
 
S&P 500 (CME) 3,928.75
-8.00 (-0.20%)
Bearish Read the analysis
3,915.00
3,960.00
 
 
Nasdaq 100 (CME) 11,475.50
-34.00 (-0.30%)
Bearish Read the analysis
11,430.00
11,600.00
 
 
Dow Jones (CME) 33,584.00
-41.00 (-0.12%)
Bearish Read the analysis
33,470.00
33,760.00
 
 
Crude Oil (WTI) 72.75
+0.74 (+1.03%)
Bearish Read the analysis
71.20
73.50
 
 
Gold 1,781.83
-4.442 (-0.25%)
Bullish Read the analysis
1,790.00
1,776.00
 
 
     
  MARKET WRAP  
 
 
Market Wrap: Stocks, Bonds, Commodities

On Wednesday, U.S. stocks still lacked upward momentum. The Dow Jones Industrial Average closed flat at 33,597, the S&P 500 declined 7 points (-0.19%) to 3,933, and the Nasdaq 100 was down 52 points (-0.45%) to 11,497.

Consumer durables & apparel (+0.86%), pharmaceuticals & biotechnology (+0.85%), and health-care equipment & services (+0.84%) sectors gained the most, while automobiles (-2.67%), consumer services (-1.32%), and technology hardware & equipment (-1.2%) sectors were under pressure.

Carvana (CVNA) plunged 42.92% after Bloomberg reported that the used-car platform is consulting lawyers and investment banks about options for managing its debt.

Tesla (TSLA) fell 3.21%, TripAdvisor (TRIP) slid 6.41%, and Southwest Airlines (LUV) dropped 4.71%.

On the other hand, Campbell Soup (CPB) rose 6.02%, as the company posted better-than-expected first-quarter earnings, and raised its annual outlook.

Regarding U.S. economic data, third-quarter unit labor costs rose 2.4% on quarter (vs +3.5% expected), and nonfarm productivity gained 0.8% on quarter (vs +0.3% expected).

The U.S. 10-year Treasury yield retreated 11.3 basis points to 3.419%.

European stocks closed lower. The DAX 40 fell 0.57%, the CAC 40 dropped 0.41%, and the FTSE 100 was down 0.43%.

U.S. WTI crude futures declined $1.80 to $72.46. The U.S. Energy Department reported a reduction of 5.19 million barrels in crude-oil stockpiles (vs -3.88 million barrels expected).

Gold price jumped $14 to $1,786 an ounce.

Market Wrap: Forex

The U.S. dollar weakened against other major currencies. The dollar index fell to 105.15.

USD/CAD was little changed at 1.3655. The Bank of Canada raised its benchmark interest rate by 50 basis points (vs +25 basis points expected) to 4.25%, the highest level in almost 15 years. The central bank signaled that its tightening campaign was near an end.

USD/JPY fell 45 pips to 136.55.

EUR/USD rose 41 pips to 1.0508. Germany's data showed that industrial production edged down 0.1% on month in October (vs -0.8% expected).

GBP/USD climbed 77 pips to 1.2210. In the U.K., the Halifax house price index dropped 2.3% on month in November (vs -0.1% expected).

AUD/USD gained 36 pips to 0.6724. 

USD/CHF lost 11 pips to 0.9409.

Bitcoin traded slightly lower to $16,800.

Morning Trading

In Asian trading hours, USD/JPY advanced further to 136.85. Japan's data showed that third-quarter gross domestic product growth was confirmed at -0.8% annualized on quarter (vs -1.0% estimated).

AUD/USD traded lower to 0.6715. Australia's data showed that trade surplus declined to 12.22 billion Australian dollars in October with exports falling 1.0% on month (vs +1.0% expected).

EUR/USD was little changed at 1.0503, and GBP/USD retreated to 1.2188.

Gold price dipped to $1,783 an ounce.

Bitcoin held up well at $16,870.

Expected Today

In the U.S., the latest number of initial jobless claims is expected to rise to 240,000.
 
 
  UK MARKET NEWS  
 
 
UK: The Royal Institute of Chartered Surveyors house price balance fell to -25% in November (vs -10% expected).

British American Tobacco, a cigarette maker, posted a trading update: "We are confident in delivering our 2022 guidance, demonstrating once again the strength and resilience of our business. (...) Our New Category business continues to drive strong volume, revenue and market share growth and has become a significant contributor to group performance. (...) We expect growing contribution across all New Categories, and all Regions in 2022. We are confident in delivering our targets of 5 billion pounds revenue, and profitability by 2025."

DS Smith, a packaging services provider, reported interim results: "For the six month period, revenue grew to 4,299 million pounds, up 26% on a constant currency basis and 28% on a reported basis (...) Adjusted basic earnings grew by 49% on a constant currency basis to 20.9 pence per share, reflecting the growth in profitability. (...) we are announcing an interim dividend for this year of 6.0 pence per share, an increase of 25%."

Technology, chemicals and financial services shares fell most in London on Tuesday.

From a relative strength vs FTSE 100 point of view, Barclays (-0.83% to 157.44p) crossed under its 50-day moving average.

From a technical point of view, BP (-2.24% to 464p) crossed under its 50-day moving average.
 
 
  ECONOMIC CALENDAR    
 
Time Event Forecast Importance
 
08:30
US
Initial Jobless Claims (Dec/03)
240k
MEDIUM
 
 
08:30
US
Continuing Jobless Claims (Nov/26)
1.62M
LOW
 
 
08:30
US
Jobless Claims 4-week Average (Dec/03)
231k
LOW
 
 
10:30
US
EIA Natural Gas Stocks Change (Dec/02)
-31Bcf
LOW
 
 
11:30
US
8-Week Bill Auction
 
LOW
 
 
11:30
US
4-Week Bill Auction
 
LOW
 
 
     
Banner Ad
 
     
  NEWS SENTIMENT  
 
 
Standard Chartered PLC
584.20 GBp
 
 
 
 
sentiment
 
 
 
↑ ↑
↑ ↑
↓ ↑
 
 
 
 
 
 
 
Trade
 
 
 
 
 
 
Siemens AG
132.90 EUR
 
 
 
 
sentiment
 
 
 
↑ ↑
↑ ↑
↓ ↑
 
 
 
 
 
 
 
Trade
 
 
 
 
 
 
Knorr-Bremse AG
52.24 EUR
 
 
 
 
sentiment
 
 
 
↑ ↑
↑ ↑
↓ ↑
 
 
 
 
 
 
 
Trade
 
 
 
 
 
 
Glencore PLC
540.30 GBp
 
 
 
 
sentiment
 
 
 
↑ ↑
↑ ↑
↓ ↑
 
 
 
 
 
 
 
Trade
 
 
 
 
 
 
Bayer AG
52.80 EUR
 
 
 
 
sentiment
 
 
 
↑ ↑
↑ ↑
↓ ↑
 
 
 
 
 
 
 
Trade
 
  TECHNICAL VIEWS  
 

 
EUR/USD Intraday: bullish bias above 1.0485.
 
Pivot:
1.0485
 
Our preference:
Long positions above 1.0485 with targets at 1.0530 & 1.0550 in extension.
 
Alternative scenario:
Below 1.0485 look for further downside with 1.0465 & 1.0440 as targets.
 
Comment:
A support base at 1.0485 has formed and has allowed for a temporary stabilisation.
 
Analyst Views Chart
 
Trade
 
 
 
 

 
Euro Stoxx 50 (Eurex)‎ (Z2)‎ Intraday: key resistance at 3949.00.
 
Pivot:
3949.00
 
Our preference:
Short positions below 3949.00 with targets at 3908.00 & 3896.00 in extension.
 
Alternative scenario:
Above 3949.00 look for further upside with 3960.00 & 3969.00 as targets.
 
Comment:
The RSI lacks downward momentum.
 
Analyst Views Chart
 
Trade
 
 
 
 

 
Brent (ICE)‎ (G3)‎ Intraday: key resistance at 78.80.
 
Pivot:
78.80
 
Our preference:
Short positions below 78.80 with targets at 76.30 & 75.10 in extension.
 
Alternative scenario:
Above 78.80 look for further upside with 80.30 & 81.30 as targets.
 
Comment:
The RSI is bearish and calls for further downside.
 
Analyst Views Chart
 
Trade
Tesla (TSLA) slumped 8.88% after the electric-car maker offered a higher discount of $7,500 on Model 3 and Model Y vehicles in the U.S

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