Archive for category: News

• US indices finished yesterday’s trading mixed after a volatile session. S&P 500 dropped 0.21%, Dow Jones moved 0.43% lower while Nasdaq gained 0.25% and Russell 2000 moved 0.40% higher
• US 10-year yields briefly breached 4% yesterday but have pulled back to 3.97% since
• US dollar gained after White House official Brian Deese said he does not expect major economies to agree on an accord aimed at weakening USD as it was the case in 1985
• Indices from Asia-Pacific slumped during the session today. Nikkei dropped 2%, S&P/ASX 200 moved 0.7% lower while Kospi traded 2.7% down. Indices from China traded 0.2-2.5% lower
• DAX futures point to a lower opening of the European cash session today

• US Treasury Secretary Yellen said that financial markets are operating normally and that she does not see any liquidity issues in the markets
• Moody’s said that new UK fiscal measures are credit negative as tax cuts are massive but lack funding
• According to BoJ minutes, BoJ members see fears of global slowdown intensifying and price increases in Japan broadening. Members see need to carefully watch impact on rapid FX moves on inflation
• Goldman Sachs expects Brent price to average $100 in Q4 2022, down from previous forecast of $125. Bank also expects average Brent price in 2023 at $108, also down from $125 previously expected
• Australian retail sales increased 0.6% MoM in August (exp. 0.5% MoM)
• API report pointed to a 4.15 million barrel build in US oil inventories (exp. +0.3 mb)
• Cryptocurrencies are pulling back. Bitcoin trades 1.1% lower, Ethereum drops 2.8% while Ripple trades 4% lower
• Commodities trade lower amid USD strengthening. Brent and WTI trade around 0.7% lower. Gold drops 0.3% while silver trades 1.2% down
• USD and JPY are the best performing major currencies while NZD and AUD lag the most

EURUSD painted a fresh 20-year low near 0.9550 as the USD rally resumed.

• US indices finished yesterday’s trading higher. S&P 500 gained 0.69%, Dow Jones moved 0.64% higher and Nasdaq added 0.76%. Russell 2000 jumped 0.81%
• Indices from Asia-Pacific followed into footsteps of US peers and traded higher today. Nikkei gained 0.5%, S&P/ASX 200 moved 1.2% and Kospi jumped 0.6%. Indices from China traded 0.1-1.2% higher
• DAX futures point to a higher opening of the European cash session

• White House extended timeline for SPR releases and sale of the final 10 million barrels was pushed back from October to November
• David Malpass, President of World Bank, warned that global economic slowdown may last into 2023
• RBA minutes did not include any major surprises and were mostly in-line with recent speech from Governor Lowe, who suggested that pace of rate hikes may slow soon
• People’s Bank of China left 1- and 5-year Loan Prime Rates unchanged at 3.65% and 4.30%, respectively. Decision was in-line with expectations
• Japanese CPI inflation accelerated from 2.6 to 3.0% YoY in August. Core measure jumped from 2.4 to 2.8% YoY (exp. 2.7% YoY)
• Cryptocurrencies are pulling back but the scale of declines is nowhere near as big as the one from the weekend or yesterday’s morning. Bitcoin drops 0.6% while Ethereum trades 1.2% lower
• Oil trades a touch higher this morning. Precious metals trade mixed – silver (-0.5%) and gold (-0.2%) drop while platinum gains (+0.6%)

• EUR, GBP and CAD are the best performing major currencies while NZD and CHF lag the most. Overall, trading ranges on G10 pairs are narrow

Rally on USDJPY eased somewhat as of late and the pair started to trade sideways in the 142.70-143.65 range. This is interesting as US yields (inverted TNOTE overlay on the chart) continue to move higher. Such development can be reasoned with uncertainty ahead of the Fed decision on Wednesday and BoJ decision on Thursday.

• US indices finished yesterday’s trading lower. S&P 500 dropped 1.13%, Dow Jones moved 0.56% lower and Nasdaq plunged 1.43%. Russell 2000 dropped 0.72%
• US index futures dipped further following close of the cash session as FedEx, a major transportation company, reported disappointing results for fiscal-Q1 and withdrew an fiscal-year earnings guidance
• Indices from Asia-Pacific also traded lower. Nikkei and Kospi dropped 1%, S&P/ASX 200 moved 1.4% lower and indices from China traded 0.6-1.4% lower
• DAX futures point to a lower opening of the European cash session

• RBA Governor Lowe said that he sees rates cycling between 2.5 and 3.5% (currently at 2.35%). Lowe also said that the Bank will consider 25 or 50 bp rate hike at next meeting
• Chinese industrial production increased 4.2% YoY in August (exp. 4.0% YoY), retail sales were 5.4% YoY higher (exp. 3.9% YoY) and urban investments jumped 5.8% YoY (exp. 5.7% YoY)
• South Korean unemployment rate dropped to a record low of 2.5% in August (previously 2.9%)
• Cryptocurrencies are trading lower. Bitcoin drops 0.3% while Ethereum trades 1.1% lower
• Energy commodities trade a touch higher. Brent gains 0.3% while WTI trades 0.2% higher on the day
• Precious metals trade little changed – gold and silver drop 0.1%, platinum trades 0.2% lower and palladium trades flat
• AUD and NZD are the best performing major currencies while CHF and CAD lag the most

S&P 500 (US500) has fully erased the recent jump and is now testing the 3,900 pts support zone. Selling intensified yesterday after the close of the Wall Street session as an earnings report from FedEx pointed to weakness in Asian and European business.

Wall Street indices slumped yesterday following higher-than-expected CPI reading from the United States. S&P 500 dropped 3.94%, Dow Jones slumped 4.32% and Nasdaq plunged 5.16%. Russell 2000 dropped 3.91%

Money market prices in a 35% chance of a 100 basis point rate hike at the FOMC meeting next week. Implied policy rate for year’s end sits at 4.18%

Indices from Asia-Pacific moved lower following a bloodbath on Wall Street. Nikkei dropped 2.6%, S&P/ASX 200 plunged 2.4% and Kospi declined 1.3%. Indices form China traded up to 2.5% lower

DAX futures point to a lower opening of the European cash session today

Cryptocurrencies also took a hit following yesterday’s US CPI reading. Bitcoin dropped over 9% and revisited $20,000 area

EURUSD dropped back below parity levels. USDJPY once again tested 145 handle but has pulled back below 144 since

Gold plunged after US CPI reading and has been hovering around $1,700 since

US President Biden said he is not concerned with yesterday’s CPI report

Oil plunged along equities yesterday but has managed to recover some ground on media reports saying United States will start restocking strategic reserves once oil prices drops below $80 per barrel

Japanese industrial production increased 0.8% MoM in July (exp. 1.0% MoM). Machinery orders for July jumped 5.3% MoM (exp. -0.8% MoM)

API report on US oil inventories pointed to a 6.03 million barrel build (exp. -0.2 mb)

GBP and JPY are the best performing major currencies while AUD and USD

EURUSD slumped following the US CPI release yesterday. The pair broke below the lower limit of the market geometry and continued the move below parity levels. An attempt of breaking above 1.00 handle, marked with 200-hour moving average (purple line), was made this morning but bulls failed to push the pair above

Indices from Asia-Pacific traded higher at the beginning of a new week. Nikkei and S&P/ASX 200 gained 1%. Liquidity conditions were thinner as traders from China and South Korea were off for holidays

European index futures point to a higher opening of the cash session on the Old Continent today

Reuters reports that Biden Administration plans to further restrict semiconductor sales to China

According to Washington Post, White House is increasingly worried about looming energy crisis in Europe and is looking for ways to boost energy supplies to the Old Continent

Exit polls showed a very narrow lead of center-left block (currently ruling) in Swedish elections over right-wing block (49.8% vs 49.2%)

Iran deal still looks out of reach. E3 countries (France, UK and Germany) said that the latest demand from Iran cast doubts on whether the country really wants to restore the 2015 nuclear deal. Iran responded saying that E3 are damaging negotiations with such unconstructive statements

According to Reuters report, ECB will need to hike rates into restrictive territory in order to get grip of inflation

ECB’s Nagel signaled over the weekend that more rate hikes are needed. ECB’s Elderson said that rates need to rise despite risk of a recession

Cryptocurrencies are trading mostly higher at the beginning of a new week. Bitcoin gains 1.2% and trades near $21,700 while Ethereum drops 0.1%

Brent and WTI trade around 1% lower at press time. Gold pulls back 0.1% while silver gains 0.6%

NZD and AUD are the best performing major currencies while JPY and CHF lag the most

Oil is trading lower at the beginning of a new week. News on Russian price caps, Russian retaliation for it or lack of progress in Iran talks fail to lift crude prices signaling that worries over global growth are playing a key role now.