Daily analysis 11 october

• US indices finished yesterday’s trading lower, following into footsteps of their European peers. S&P 500 dropped 0.75%, Dow Jones moved 0.32% lower and Nasdaq plunged 1.04%. Russell 2000 dropped 0.60%. This was the fourth consecutive session of declines on Wall Street
• Indices from Asia-Pacific traded mixed. S&P/ASX 200 dropped 0.3% while indices from China gained. Nikkei and Kospi plunged over 2% as traders returned from a long weekend
• DAX futures point to a slightly lower opening of the European cash session today

• Fed Vice Chair Brainard said that inflation remains a significant challenge and it will take time for tightening delivered by Fed to bring price growth down. She also noted that starting policy easing too early poses risks
• On the other hand, Fed Evans said that central banks can relatively quickly bring inflation down without causing a recession or spike in unemployment. He also said that target rates should rise slightly above 4.5% early next year and stay there for some time
• Jamie Dimon, CEO of JPMorgan, said that recession in the United States is likely in 6-9 months from now
• Japanese finance minister once again repeated that FX moves are being monitored closely and that authorities are ready to respond to excessive moves. Comments came as USDJPY moved above 145.70
• South Korean exports dropped 20.2% YoY in the first 10 days of October. Imports were 11.3% YoY lower. Chip exports dropped 20.6% YoY
• Declines can be spotted all across the cryptocurrency market. Bitcoin drops 1.1%, Ethereum trades 2.5% lower and Ripple is quotes almost 5% down

• Oil is trading little changed with Brent quoted slightly below $96 per barrel and WTI trading slightly below $91 per barrel
• Precious metals trade slightly lower amid USD strengthening. Gold drops 0.2% and trades near $1,665 per ounce while silver declines 0.9%
• USD and JPY are the best performing major currencies while AUD and CAD lag the most

Tech shares were top laggards during the US session yesterday with Nasdaq-100 (US100) trying to break below 10,900 pts support zone. Index briefly traded below October 3 low and reached a fresh 2-year low.