Morning wrap (06.05.2021)

8:34 am 6 May 2021

  • US indices finished yesterday's trading mixed. S&P 500 gained 0.07%, Dow Jones added 0.29%, Nasdaq dropped 0.37% and Russell 2000 moved 0.31% lower

  • Stocks in Asia traded mixed as well. Nikkei gained over 1.6%, Kospi moved 0.6% higher, S&P/ASX 200 dropped 0.7% and indices from China traded lower

  • DAX futures point to a more or less flat opening of the European session

  • Politico reports that recent studies have found that Moderna vaccine is effective against mutant coronavirus variants

  • Australian dollar dropped after Reuters reported that China plans to suspend economic dialogue with Australia

  • Brazillian central bank delivered a 75 basis points rate hike to 3.50%. Bankers also hinted that adjustment of similar size will be made at the next meeting

  • Fed Rosengren said it is too early to start discussions on QE taper

  • PayPal reported Q1 revenue at $6.03 billion (exp. $5.9 billion) and EPS of $1.22 (exp. $1.01). Company's CEO said that cryptocurrencies are now the main growth driver for the company. PayPal said it will launch a digital wallet product soon

  • Uber Technologies reported Q1 revenue of $2.90 billion (exp. $3.29 billion) and loss per share of $0.06 (exp. -$0.54). Net loss stood at $108 million. Company said that relatively small net loss was a result of booking a $1.6 billion gain on sale of self-driving division

  • Precious metals, oil, industrial metals and agricultural goods gain

  • AUD is the worst performing major currency while EUR and CAD outperform

AUDUSD plunged following a Reuters headline on Australia-China economic dialogue. The pair pulled back from the 0.7753 area, where the 200-hour moving average can be found, and dropped towards the 0.7700 handle. However, around half of the downward move has been recovered already. Source: xStation5

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