Archive for category: News

• Wall Street indices snapped a losing streak and finished yesterday’s trading with decent gains. S&P 500 gained 0.75%, Dow Jones moved 0.55% higher and Nasdaq added 1.13%. Russell 2000 moved 0.63% higher
• Indices from Asia-Pacific followed into footsteps of US peers and traded higher today. Nikkei gained 1.2%, S&P/ASX 200 added 0.5%, Kospi moved 0.8% higher and indices from China traded up to 2.5% higher. Nifty 50 was a laggard with 0.3% drop
• DAX futures point to a higher opening of the European cash session

• According to US Treasury Secretary Yellen, recent moves on the US dollar market reflect fundamentals of the US economy
• Chinese CPI inflation decelerated in-line with expectations in November, moving lower from 2.1 to 1.6% YoY. PPI inflation remained unchanged at -1.3% YoY (exp. -1.5% YoY)
• New Zealand manufacturing sales climbed 3.1% QoQ in Q3 2022. This was the first positive reading since Q4 2021 as data for Q1 and Q2 showed -4.9% QoQ and -3.5% QoQ, respectively
• TC Energy said that oil spill from Keystone pipeline leakage is estimated a 14k barrels of oil, making it one of the biggest oil spills in the US in the past decade. It remains uncertain for how long the pipeline will remain shut
• Cryptocurrencies trade without a clear, common direction. Bitcoin gains 0.1% while Ethereum and Dogecoin trade 0.4% lower. Graph rallies over 4% while Waves drops almost 3%
• Energy commodities trade mixed this morning – oil trades a touch high while US natural gas prices drop almost 2%
• Precious metals benefit from USD weakening – gold gains 0.3%, silver adds 0.5% and platinum trades 0.8% higher
• NZD and JPY are the best performing major currencies while USD and CAD lag the most

Nasdaq-100 (US100) bounced off the 11,500 pts support zone, snapping a 5-day losing streak. The index maintained an ongoing trading range. Near-term resistance to watch can be found at the upper limit of the range in the 12,100 pts area.

• US indices finished yesterday’s trading lower with all major Wall Street indices dropping over 1%. S&P 500 dropped 1.79%, Dow Jones moved 1.40% lower and Nasdaq slumped 1.93%. Russell 2000 was top laggard with a 2.78% plunge
• Jump in bond yields is seen as a reason behind the pressure on US equity market yesterday. Release of better-than-expected services ISM index sent market rates higher
• Indices from Asia-Pacific traded mostly lower today. S&P/ASX 200, Kospi and Nifty 50 dropped, indices from China traded mixed and Nikkei gained 0.2%
• DAX futures point to a slightly lower opening of the European cash session today

• Reserve Bank of Australia delivered a 25 basis point rate hike, putting the main interest rate at 3.10% – the highest level since early-2013. Decision was in-line with market expectations. Statement showed that RBA Board expects interest rates to be raised further in the near future
• AUD gained slightly following RBA decision but move was rather small as a 25 bp rate hike was expected and priced-in before the meeting
• According to Financial Times, US Treasury is finalizing plans for a package regulating the cryptocurrency industry. Details are scarce but FT reports that it will include, among other things, limits on advertising
• BoJ Governor Kuroda said that benefits of current easy monetary policy outweigh the costs

• Japanese household spending increased 1.2% YoY in October (exp. 1.0% YoY)
• Energy commodities trade mixed – oil is trading a touch higher while natural gas drops
• In spite of a USD strengthening, precious metals trade mixed. Silver and palladium gain while gold and platinum drop
• AUD and USD are the best performing major currencies while CHF and JPY lag the most

AUDUSD ticked higher following RBA rate decision but scale of the move was small. The pair pulled back from the upper limit of the Overbalance structure recently and the outlook looks somewhat bearish.

• Wall Street indices rallied yesterday as Powell paved a way for a smaller 50 basis point rate hike in December. S&P 500 gained 3.09%, Dow Jones moved 2.18% higher and Nasdaq surged 4.41%. Russell 2000 jumped 2.72%
• Fed Chair Powell said that he does not want to over-tighten policy and moderating pace of rate hikes would make sense. However, he warned that any rate cuts are off the table in the near future
• Indices from Asia-Pacific followed into footsteps of their US peers and also gained, although scale of moves was much smaller than on Wall Street
• European index futures point to a higher opening of the cash session today with DAX futures trading around 200 points above yesterday’s cash close

• US Treasury Secretary Yellen said that soft landing for the US economy remains possible
• Chinese Vice Premier Chunlan said that coronavirus is becoming less severe and Chinese experience in fighting it may allow the country to enter a new stage of the pandemic. Those remarks were taken as a potential prelude to easing of restrictions
• CNBC reports that White House considers release of emergency heating and crude oil reserves
• Chinese Caixin manufacturing PMI moved from 49.2 to 49.4 in November (exp. 48.9)
• South Korean exports plunged 14% YoY in November (exp. -11% YoY) while imports were 2.7% YoY higher (exp. 0.2% YoY). Semiconductor exports slumped 29.8% YoY
• Cryptocurrencies jumped yesterday in the evening amid post-Powell increase in risk appetite. However, major coins are pulling back slightly today with Bitcoin dropping 0.2% and Ethereum trading 1% lower
• Oil is trading slightly lower while precious metals benefit from USD weakening
• JPY and NZD are the best performing major currencies while USD and CAD are top laggards

Nasdaq-100 (US100) rallied yesterday on dovish Powell and managed to break above the downward trendline.

• US indices finished yesterday’s session lower with all major benchmark from Wall Street dropping more than 1%. S&P 500 dropped 1.54%, Dow Jones moved 1.45% lower and Nasdaq declined 1.58%. Russell 2000 plunged 2.05%
• Risk moods improved during the Asian session amid rumors that China may relax its coronavirus policies in response to recent protests. State Council will hold a press conference at 7:00 am GMT and some speculate that announcements may be made there
• Chinese indices gained with CHNComp trading over 3% higher at press time. Other indices from Asia-Pacific traded mostly higher but Japanese Nikkei lagged
• DAX futures point to a higher opening of the European cash session today
• Fed Barkin said that if inflation remains high, rates will continue to rise. Fed Brainard said that she expects inflation to remain volatile in the coming years

• Japanese retail sales increased 4.3% YoY in October (exp. 5.0% YoY)
• Japanese unemployment rate remained unchanged at 2.6% in October (exp. 2.5%)
• CPI inflation in German North Rhine Westphalia state decelerated from 11.0 to 10.4% YoY in November
• Cryptocurrencies gain with Bitcoin adding 1.5% and Ethereum trading 2.9% higher. Dogecoin rallies almost 8%
• Pick-up in risk appetite is supporting oil and industrial metal prices. Commodity currencies, like AUD or NZD, are also outperforming

CHNComp is rallying today as traders hope for relaxing of Covid measures to be announced. Index recovered all of yesterday’s losses and is trading at the highest level in almost 2 weeks

• US indices finished yesterday’s trading slightly lower following hawkish comments from Fed members. S&P 500 dropped 0.31%, Dow Jones moved 0.02% lower and Nasdaq declined 0.35%. Russell 2000 dropped 0.76%
• Indices from Asia-Pacific traded mixed today. Nikkei and Nifty 50 dropped while S&P/ASX 200 and Kospi gained slightly. Indices from China traded mixed
• DAX futures point to a slightly higher opening of the European cash session today

• Leaders of Japan, the United States and South Korea will hold an emergency meeting after North Korea launched an Intercontinental Ballistic Missile. ICBM landed 200 km off the coast of Japan but inside a Japanese exclusive economic zone. It is said that it had enough capacity to reach US mainland
• People’s Bank of China Advisor Liu said that China should target GDP growth of around 5% in 2023
• Japanese CPI inflation accelerated from 3.0 to 3.7% YoY in October, reaching a 40-year high. Core CPI inflation accelerated from 3.0 to 3.6% YoY (exp. 3.5% YoY)
• BoJ Governor Kuroda that inflation may accelerate further in the coming months before it starts to cool off
• According to Wall Street Journal and Reuters, cryptocurrency lender Genesis sought for a $1 billion emergency loan due to a liquidity crunch before making a decision to halt transfers and withdrawals
• Cryptocurrencies trade slightly higher this morning with Bitcoin gaining 0.3% and Ethereum trading 0.7% higher
• Oil is trading little changed on the day while precious metals post small gains
• NZD and GBP are the best performing major currencies while CHF and CAD lag the most

While Bank of Japan remains dovish, CPI spike to a 40-year high led to some hawkish calls from market participants. This is supporting yen today with USDJPY attempting to break back below 140.00 mark.