Midday Brief – Big Day for Corporate earnings

The markets were at ease early Tuesday morning as investors await big tech corporate earnings. Major banks, UBS and HSBC released their corporate earnings early European morning while investors watch out for Tech companies’ earnings including Microsoft, and Alphabet. US economic data will be key later in the New York session while markets were agitated by the $44 billion Twitter Acquisition by Elon Musk.

UN Secretary-general will be visiting Moscow as Diplomatic negotiations continue on a long spiral road. Russia’s Lavrov has warned about the possibility of nuclear war despite the peace talks with Ukraine.

PBOC pledges support for small businesses and a quick resolution to the tech industry crackdown. The reassurance comes at a time when investors are worried about the implications of lockdown on growth.

The EURAUD trimmed 3-sessions gains ahead of Australia’s inflation data on Wednesday. The bullish momentum halted at a near-term barrier at 1.50000 high on Monday and sellers are currently trading towards the 1.48000 area. The pair dropped by -0.61% early European session, and a break below the 1.48000 area may reinforce selling pressure towards 1.4685.

GBPJPY plunged by -0.48% as the pair continues on the corrective pattern from 7-year highs. The pair broke below critical support at 164.00 on Monday reinforcing selling pressure towards 158.00 near-term support. The outlook for the pair turns bearish in the near term and investors focus on the BoE Deputy governor Wood’s speech later in the New York Session.

CADJPY extended a drop by -0.38% to a weekly low as falling commodity prices continue to underpin Canadian dollar demand in the near term. The Japanese yen remains resilient ahead of the Monetary policy meeting on Thursday. A break below 100.00 may renew selling pressure towards the 98.00 near-term psychological support. Investors focus on BoC governor council member Lane’s speech later in the New York session.

European equities were mixed in the early European session. The DAX was up by 0.97% from a 6-week low at 13850. Bulls may fill up a price action gap between 14040 and 14135 created on 22 April, before a clear direction unfolds. The FTSE was slightly up by +0.14% after parring Monday losses. Upside movement is capped by 7500 near-term barriers and a break above that may see bulls attempting to reclaim the 7600 area. CAC40 was down by -0.10% and holding above 6400 may see bulls resuming the uptrend.

US Equities futures opened lower ahead of Tuesday’s Big corporate earnings. The S&P futures were down by -0. 34% despite closing higher on Monday. Critical areas to watch out for are the 4200 near-term support and 4400 near-term resistance. The Nasdaq futures trimmed Monday gains by -0.33% as the $44 billion dollars Twitter acquisition fades. Dow Jones dropped by -0.50% as bulls face a near-term barrier at the 34100.00 area.

In commodities, USWTI crude oil futures were up by +0.63% as bulls defended the $95/barrel. Gains remain capped by a 100.00 psychological barrier. Brent gained +0.75% and a failure to break above 104.98 may renew selling interests towards 97.00 near-term support.

Gold is up by +0.33% reclaiming 1900.00 after Monday’s sell-off and if bulls fail to hold above that area may see bears targeting 1875.