Morning wrap (13.06.2023)

• Asian markets, US, and European futures rose in anticipation that the Federal Reserve will pause its aggressive tightening measures.

• Indices from Asia-Pacific traded mostly higher today. Nikkei gained 1.2% while Kospi traded 0.66% higher. Indices from China traded up to 0.6% higher

• The Japanese Nikkei 250 index broke above resistance levels and closed near 33,000 points.

• The offshore yuan and Chinese bond yields fell after the People's Bank of China (PBoC) reduced its short-term policy interest rate to support the economy.

• The PBoC cut the seven-day reverse repurchase rate by 10 basis points to 1.90% and injected 2 billion yuan into the short-term bond instrument.

• US futures climbed slightly after the Nasdaq100 and SP500 reached their highest levels since April 2022, with a focus on Asian technology companies. 

• US500 futures trade 0.14% higher today at 4351 points.

• At yesterday's close, stocks made slight gains on Wall Street as traders anticipated major interest rate decisions from central banks. The S&P 500 extended its bull-market run as investors speculated on a pause in rate hikes by the Federal Reserve.

• The 2-year US Treasury yield, which is sensitive to central bank actions, consolidates at the peak around 4.55%.

• The FED Committee is expected to maintain interest rates in the 5%-5.25% range, assuming moderate inflationary pressure based on the consumer price index data released Today. 

• However, the possibility of a rate hike in July has increased according to swaps pricing.

• Tesla continued its 12-day streak of gains due to its electric-car chargers becoming an industry standard.

• Energy commodities trade mixed - Oil inches 0.1% while US natural gas prices gain 0.5%

• Cryptocurrencies consolidate at the bottom or last week drops as investors await CPI data and FOMC decision. Ethereum is trading around $1745 and BTC $26000.

Bitcoin is currently consolidating within a range of 25,300 to 26,000. The key support level is at 25,300, which has shown significant reactions in the past few months. If the bullish momentum fails to sustain this level, a potential further decline may be expected, D1 interval, source xStation 5.