Daily analysis 03 NOVEMBER 2022

• Fed delivered another 75 basis point rate hike, in-line with market expectations. Fed Chair Powell was very hawkish during press conference and dashed market hopes for a quick pivot
• US indices slumped after yesterday’s Fed meeting. S&P 500 dropped 2.50%, Nasdaq moved 3.36% lower and Dow Jones declined 1.55%. Russell 2000 slumped 3.36%
• US dollar gained while gold and other precious metals moved lower
• Indices from Asia-Pacific also traded lower in response to Fed meeting. S&P/ASX 200 slumped 1.8%, Kospi moved 0.3% lower and indices from China traded 0.2-2.8% lower. Stock exchanges in Japan were shut for holiday
• DAX futures point to a slightly lower opening of the European cash session today

• According to the Times report, UK Prime Minister Sunak plans to extend windfall tax on oil and gas companies in order to collect around 40 billion GBP over a 5-year period
• RBNZ Governor Orr said that central bank is focused on returning to a 1-3% inflation target range
• Chinese officials repeated country’s commitment to zero-Covid policy after some unconfirmed media reports hinted that exit from the strategy may be near
• According to Canadian media, Canada plans to introduce a tax on corporate stock buybacks and proposal may be unveiled as soon as this week
• North Korea fired another ballistic missile towards the East Sea. Japanese authorities say that so far no damage from the missile has been reported
• Cryptocurrencies trade higher today. Bitcoin gains 1.1%, Ethereum trades 2.5% higher and Dogecoin rallies 4.3%
• Oil and precious metals trade a touch higher this morning
• NZD and JPY are the best performing major currencies while CHF and USD lag the most

US500 gained in the initial reaction following Fed’s decision announcement. However, gains were erased during Powell’s press conference as Fed Chair was very hawkish. Index broke below 200-hour moving average and continued to move lower until it broke below 3,785 pts zone as well.