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HSBCs chief multi-asset strategist, Max Kettner, stated that a market correction is possible as market sentiment overheats, the effects of fiscal stimulus diminish, and uncertainty surrounding the US midterm elections rises. Investors should consider moderately reducing their equity positions after the earnings season ends. Kettner, who has maintained a top-weighted overweight rating on equities since mid-March, noted that current positioning and market sentiment are approaching levels seen during the economic reopening trading period in 2021, while some US credit card data indicates that consumer spending has begun to slow. He pointed out that the fiscal stimulus from the "Big and Beautiful Act" is comparable to that of the 2009 financial crisis, but the stimulus is primarily concentrated in the first half of 2026, with limited incremental support available in the future. Regarding specific midterm election risks, Kettner pointed out that current polls show a close Senate race, increasing uncertainty surrounding AI and data center regulations. This uncertainty could drag down the entire technology sector, not just the divergence between semiconductors and hyperscale cloud service providers; technology stocks as a whole could be affected. However, he also believes that such a correction could present buying opportunities.The ZEW economic sentiment index for Germany and the Eurozone in July will be released in ten minutes.The Bahraini military said it intercepted an Iranian attack on Tuesday.The onshore yuan closed at 6.7668 against the US dollar at 16:30 on July 21, up 2 points from the previous trading day.July 21 – According to a report by Nikkei Asia citing multiple sources familiar with the matter, TSMC (TSM.N) plans to raise its foundry prices for advanced and mature process chips in 2027 by up to 10% to cope with rising costs of materials, manufacturing equipment, and overseas new plant construction. TSMC has already begun discussions with customers regarding the price increase, which involves 7nm and more advanced processes. This segment contributed approximately 77% of TSMCs revenue in the April-June quarter of this year. Sources indicated that the base price increase will be 5% to 10%, depending on the customer and product. For new orders for high-performance computing (HPC) chips that exceed customer forecasts, TSMC plans to add a premium of 10% to 15% on top of the base price increase. Therefore, the overall price increase for some advanced process chip orders may exceed 10%. For mature processes (including 12nm, 16nm, 28nm, and other traditional processes), TSMC plans a maximum price increase of 10%, but the increase for some products will be lower than this level. Mature process technology accounted for approximately 23% of the companys revenue in the last quarter. Sources familiar with the matter said that negotiations began around June and were finalized in July, with the new price set to take effect in early 2027.

E-mini S&P Pressured by Inflation, Economic Growth Worries

Cameron Murphy

Apr 27, 2022 10:35

Investors are waiting to see if earnings from Big Tech companies this week would offer the support needed to stop the current sell-off. June E-mini S&P 500 Index futures are trading lower shortly after the cash market opened on Tuesday. Concerns about high inflation and weakening global economy are driving the price activity.


June E-mini S&P 500 Index futures are trading at 4231.25, down 61.50 or 1.43 percent, at 14:17 GMT. The S&P 500 Trust ETF (SPY) is down $6.31, or 1.47 percent, to $422.20.


According to Refinitiv statistics, 77.5 percent of the 102 businesses in the S&P 500 that reported earnings through Monday exceeded analysts' profit projections. In a typical quarter, 66 percent of results exceeded expectations.

Earnings Reports

United Parcel Service Inc increased 1.9 percent after reporting an increase in quarterly adjusted earnings, while 3M Co rose 0.9 percent after exceeding profit expectations.


General Electric Co slumped 3.5 percent after expecting full-year earnings at the low end of its previous estimate, as the industrial behemoth struggles with supply chain interruptions and rising freight and raw materials costs.


Core Durable Goods Orders in the United States increased 1.1 percent, exceeding expectations and the previous reading. The Consumer Confidence survey from the Conference Board came in at 107.3, lower than the prediction of 108.5, but the preceding report was revised upward. Finally, new home sales came in at 763,000, which was lower than expected. The preceding month's figures were revised upwards.

Technical Analysis of the Daily Swing Chart

According to the daily swing chart, the major trend is down. The return of the decline will be signaled by a trade through 4195.25. The major trend will turn to up if the price breaks through 4509.00.


4094.25 to 4631.00 is the short-term range. Resistance is found in the retracement zone of 4299.25 to 4362.75. Earlier in the session, the bottom or Fibonacci level of this range stopped the purchasing.

Technical Forecast for the Daily Swing Chart

Trader reaction to 4292.75 will influence the direction of the June E-mini S&P 500 Index into Tuesday's closing.

Reaction: Bearish

The presence of sellers will be shown by a persistent rise below 4292.75. If the minor bottom at 4195.25 is broken, it will imply that the selling pressure is increasing. This might cause a sell-off to begin, with the first negative target of 4129.50, followed by 4094.25.

Positive Reaction

The presence of buyers will be signaled by a prolonged advance over 4292.75. Overtaking the Fibonacci level at 4299.25 will signal a strengthening of the buying. This could prompt a move higher, with the primary 50 percent milestone at 4362.75 as the next big objective.

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