Tesla (TSLA) sank a further 2.58% after Goldman Sachs lowered its price target on the stock

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 15, 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) 14,399.00
-65.00 (-0.45%)
Bearish Read the analysis
14,350.00
14,505.00
 
 
FTSE 100 (ICE Europe) 0.00
0.00 (0.00%)
Bearish Read the analysis
7,461.00
7,509.00
 
 
S&P 500 (CME) 4,030.50
-0.25 (-0.01%)
Bullish Read the analysis
4,070.00
3,997.00
 
 
Nasdaq 100 (CME) 11,854.50
-14.50 (-0.12%)
Bullish Read the analysis
12,060.00
11,730.00
 
 
Dow Jones (CME) 34,258.00
+19.00 (+0.06%)
Bullish Read the analysis
34,620.00
33,960.00
 
 
Crude Oil (WTI) 76.63
-0.65 (-0.84%)
Bullish Read the analysis
77.80
75.70
 
 
Gold 1,795.33
-11.995 (-0.66%)
Bearish Read the analysis
1,785.00
1,805.00
 
 
 
 
     
 
 
  MARKET WRAP  
 
 
 
 
Market Wrap: Stocks, Bonds, Commodities

On Wednesday, U.S. stocks posted an intraday reversal to the downside after investors digested Federal Reserve Chair Jerome Powell's hawkish post-rate-hike comments. The Dow Jones Industrial Average closed 142 points lower (-0.42%) to 33,966, the S&P 500 fell 24 points (-0.61%) to 3,995, and the Nasdaq 100 slid 93 points (-0.79%) to 11,740.

As widely expected, the Federal Reserve raised its key interest rates by 50 basis points to 4.25-4.50%. The Fed now projects the key rate to reach 5.10% by the end of 2023.

And Jerome Powell pointed out the central bank will not cut interest rates until its inflation target of 2% is reached.

The U.S. 10-year Treasury Yield dropped 2.9 basis points to 3.472%.

Automobiles (-2.14%), diversified financials (-1.56%), and semiconductors (-1.49%) sectors lost the most.

Tesla (TSLA) sank a further 2.58% after Goldman Sachs lowered its price target on the stock.

Marriott International (MAR) fell 2.32% as the hotel operator was downgraded to "neutral" at Citi.

On the other hand, Delta Air Lines (DAL) rose 2.79% as the airline gave a better-than-expected full-year guidance on adjusted earnings per share.

Pfizer (PFE) gained 2.66% on reports that the drugmaker has been allowed to import and distribute antiviral drug Paxlovid in China.

European stocks also closed lower. The DAX 40 fell 0.26%, the CAC 40 dropped 0.21%, and the FTSE 100 dipped 0.09%.

U.S. WTI crude futures added $2.00 to $77.38 a barrel. The U.S. Energy Department reported an addition of 10.23 million barrels in crude-oil stockpiles, in contrast to a reduction of 3.59 million barrels expected.

Gold price declined $3 to $1,807 an ounce.

Market Wrap: Forex

The U.S. dollar softened against other major currencies. The dollar index declined to 103.62.

EUR/USD rose 52 pips to 1.0685. Data showed that the Eurozone's industrial production declined 2.0% on month in October (vs -1.2% expected).

GBP/USD gained 64 pips to 1.2430. In the U.K., the inflation rate slowed to 10.7% on year in November (vs +11.0% expected).

USD/JPY dropped 16 pips to 135.43.

AUD/USD added 9 pips to 0.6864. This morning, Australia's data showed that the jobless rate remained stable at 3.4% in November with employment rising by 64,000 (vs +25,000 expected).

USD/CHF declined 44 pips to 0.9240, and USD/CAD was little changed at 1.3544.

Bitcoin once broke above $18,000 before retreating to $17,800 after the 50-basis-point rate hike was confirmed.

Morning Trading

In Asian trading hours, Japan's data showed that trade deficit narrowed to 2.03 trillion yen in November (vs 1.80 trillion yen expected) with exports increasing 20.0% on year (vs +24.0% expected).

USD/JPY was stable at 135.53.

Australia's data showed that the jobless rate remained stable at 3.4% in November with employment rising by 64,000 (vs +25,000 expected).

AUD/USD declined to 0.6839.

EUR/USD retreated to 1.0655, and GBP/USD traded lower to 1.2392.

Gold price lost again the handle of $1,800 an ounce.

Bitcoin declined further to $17,720.

Expected Today

In the U.K., the Bank of England is expected to raise its key interest rate by 50 basis points to 3.50%.

The European Central Bank is expected to increase its key interest rates by 50 basis points to 2.0-2.5%.

In the U.S., retail sales are expected to grow 0.2% on month in November. The latest number of initial jobless claims is expected at 235,000.

The New York State manufacturing index is expected to fall to 1.0 in December, while the Philadelphia Fed manufacturing index is expected to improve to -7.0 in December.
 
 
 
 
  UK MARKET NEWS  
 
 
 
 
AstraZeneca, a global biopharmaceutical company, said the U.S. Food and Drug Administration (FDA) will extend the Prescription Drug User Fee Act (PDUFA) date by three months to provide further time for a full review of the supplementary new drug application (sNDA) for Lynparza (olaparib) in combination with abiraterone and prednisone or prednisolone for the treatment of metastatic castration-resistant prostate cancer (mCRPC).

Auto & Parts, chemicals and insurance shares gained most in London on Tuesday.

From a relative strength vs FTSE 100 point of view, BAE Systems (+1.61% to 834.2p), Compass Group (+1.37% to 1925p), Croda International (+0.29% to 7016p) crossed above their 50-day moving average.
 
 
 
 
  ECONOMIC CALENDAR    
 
 
 
Time Event Forecast Importance
 
07:00
GB
BoE Interest Rate Decision
3.5%
HIGH
 
 
07:00
GB
MPC Meeting Minutes
 
MEDIUM
 
 
07:00
GB
BoE MPC Vote Cut
0/9
MEDIUM
 
 
07:00
GB
BoE MPC Vote Unchanged
0/9
MEDIUM
 
 
07:00
GB
BoE MPC Vote Hike
9/9
MEDIUM
 
 
08:30
US
Retail Sales MoM (Nov)
0.2%
HIGH
 
 
08:30
US
Initial Jobless Claims (Dec/10)
235k
MEDIUM
 
 
08:30
US
NY Empire State Manufacturing Index (Dec)
1
MEDIUM
 
 
08:30
US
Retail Sales Ex Autos MoM (Nov)
0.5%
MEDIUM
 
 
08:30
US
Philadelphia Fed Manufacturing Index (Dec)
-7
MEDIUM
 
 
09:15
US
Industrial Production YoY (Nov)
2.7%
MEDIUM
 
 
09:15
US
Industrial Production MoM (Nov)
-0.2%
MEDIUM
 
 
10:00
US
Business Inventories MoM (Oct)
0.3%
MEDIUM
 
 
16:00
US
Net Long-term TIC Flows (Oct)
 
MEDIUM
 
 
19:01
GB
GfK Consumer Confidence (Dec)
-43
HIGH
 
 
 
 
     
 
 
Banner Ad
 
 
 
     
 
 
  NEWS SENTIMENT  
 
 
 
 
HSBC Holdings PLC
497.70 GBp
 
 
 
 
sentiment
 
 
 
↑ ↑
↑ ↑
↓ ↑
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Uniper SE
3.044 EUR
 
 
 
 
sentiment
 
 
 
↑ ↑
↑ ↑
↓ ↑
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RWE AG
42.73 EUR
 
 
 
 
sentiment
 
 
 
↑ ↑
↑ ↑
↓ ↑
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rio Tinto PLC
5,622.00 GBp
 
 
 
 
sentiment
 
 
 
↑ ↑
↑ ↑
↓ ↑
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deliveroo PLC
86.90 GBp
 
 
 
 
sentiment
 
 
 
↑ ↑
↑ ↑
↓ ↑
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Barclays PLC
160.26 GBp
 
 
 
 
sentiment
 
 
 
↑ ↑
↑ ↑
↓ ↑
 
 
 
 
 
 
 
 
 
 
 
  TECHNICAL VIEWS  
 
 

 
 
EUR/USD Intraday: the upside prevails.
 
Pivot:
1.0635
 
Our preference:
Long positions above 1.0635 with targets at 1.0700 & 1.0725 in extension.
 
Alternative scenario:
Below 1.0635 look for further downside with 1.0610 & 1.0585 as targets.
 
Comment:
The RSI lacks downward momentum.
 
Analyst Views Chart
 
 
 
 
 
 
 

 
 
Euro Stoxx 50 (Eurex)‎ (Z2)‎ Intraday: under pressure.
 
Pivot:
3984.00
 
Our preference:
Short positions below 3984.00 with targets at 3944.00 & 3921.00 in extension.
 
Alternative scenario:
Above 3984.00 look for further upside with 3995.00 & 4017.00 as targets.
 
Comment:
As long as the resistance at 3984.00 is not surpassed, the risk of the break below 3944.00 remains high.
 
Analyst Views Chart
 
 
 
 
 
 
 

 
 
Brent (ICE)‎ (G3)‎ Intraday: bullish bias above 81.20.
 
Pivot:
81.20
 
Our preference:
Long positions above 81.20 with targets at 83.60 & 85.20 in extension.
 
Alternative scenario:
Below 81.20 look for further downside with 80.10 & 78.60 as targets.
 
Comment:
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
 
Analyst Views Chart
 
 
 
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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