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Daily Market Outlook, December 8, 2022

Daily Market Outlook, December 8, 2022 Wall Street Whipsawed On Deflationary Data & Putin Nuclear RhetoricWall Street witnessed a whipsaw session, driven by downward revisions to Q3 unit labour costs, this prompted a sell-off in US Yields and a rally in US stocks, this move was sharply reversed as investors hit the sell button as comments from President Putin hit the wires, President Putin was reported to consider nuclear weapons as a response to any attack, once again elevating concerns about a nuclear threat from Russia. The benchmark SP500 ended the session with a fifth consecutive day of losses, and Asian equities followed suit overnight with lacklustre performance across the region. The only performer of note was the Hang Seng with investors once again piling into the tech stocks in the hope of reopening in Hong Kong.There is no tier-one economic data in either the UK or the Eurozone today, so markets will focus on a smattering of ECB speakers, principally ECB President Lagarde, her speech will be parsed for any further clues as to the rate path trajectory in the Eurozone, along with any hints as to a potential terminal rate for the single currency region. In the US the only data of note later today will be initial jobless claims, the data has continued to confirm a robust employment environment stateside, with last week's non-farm payrolls data printing above the market's expectations, with a surprise increase in wage growth providing further cover for the Fed to maintain its hawkish policy stance. Markets will monitor comments from Fed Chair Powell who gives a Nobel lecture later today. Markets-wise, the mood remains somewhat subdued this morning; European bourses have made meagre gains as investors weigh the ongoing geo-political risk from Russia combined with the deteriorating macro perspective, on the positive side of the ledger the ongoing China re-opening story offers some solace for investors. Early Friday, China will release PPI data, which is expected to show further declines, the contraction in trade data announced earlier this week is likely to lead to weaker inflation in the region.Overnight HeadlinesJapan’s Economy Shrank Less Than First Thought In Third QuarterAustralia Extends Trade Surplus Streak On Metals And Gas ExportsHK May End Outdoor Mask Rule, Relax Covid Tests, Report SaysChina Asks Insurers To Buy Bonds As Retail Investors Pull BackChina Studies Expanding REITs Pilot Scheme To More PropertiesNetherlands Plans Curbs On China Tech Exports In Deal With USChina's Yuan Dips On Economic Worries Even As Covid Rules EaseBond Market Points To Fed Standing Firm In Battle Against InflationOil Edges Higher After Four-Day Retreat As Traders Look To ChinaVenezuelan Officials, Chevron Execs Hold Closed-Door MeetingsBankman-Fried Faces Federal Market Manipulation Probe – NYTAsia Stocks Slip As Hang Seng Surges On Reopening ExpectationsChevron Lifts 2023 Capital To Top Of Range Amid Biden PressureMusk Bankers Mull Tesla Margin Loan To Cut Risky Twitter DebtFX Options Expiring 10am New York CutEUR/USD: 1.0400-05 (306M), 1.0420-30 (567M), 1.0450 (810M)USD/JPY: 136.35-45 (420M), 137.00 (741M)AUD/USD: 0.6665 (201M), 0.6700 (526M), 0.6800-10 (1.02BLN)USD/CAD: 1.3490-00 (881M), 1.3550 (500M), 1.3650 (785M)Technical & Trade ViewsSP500 Bias: Bullish Above Bearish Below 3900Primary support is 3900Primary upside objective is 4120Failure at 3880 opens a test of 385020 Day VWAP bullish, 5 Day VWAP bearishEURUSD Bias: Bullish Above Bearish below 1.0450Primary support is 1.0450Primary upside objective is 1.0620Failure at 1.04 opens a test of 1.035020 Day VWAP bullish, 5 Day VWAP bearishGBPUSD Bias: Bullish Above Bearish below 1.21Primary support is 1.21Primary upside objective 1.24Failure at 1.2080 opens a test of 1.203020 Day VWAP bullish, 5 Day VWAP bullishUSDJPY Bias: Bullish above Bearish Below 137.7Primary resistance is 137.70Primary downside objective is 132Acceptance above 138 opens a test of 139.3020 Day VWAP bearish, 5 Day VWAP bullishAUDUSD Bias: Bullish Above Bearish below .6640Primary support is .6640Primary upside objective is .6900Failure at .6600 opens a test of .655020 Day VWAP bullish, 5 Day VWAP bearishBTCUSD Bias: Intraday Bullish Above Bearish below 16500Intraday 16500 is primary supportPrimary upside objective is 18000Failure at 16400 opens a test of 1600020 Day VWAP bearish, 5 Day VWAP bullish



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