Morning wrap (06.10.2021)

8:50 am 6 October 2021

  • Moods on Wall Street improved yesterday with S&P 500 gaining 1.05%, Dow Jones adding 0.92% and Nasdaq moving 1.25% higher. Russell 2000 gained 0.55%

  • Stocks in Asia traded mostly lower today. Nikkei and Kospi dropped around 0.9% while S&P/ASX 200 moved almost 0.6% lower

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

  • Joe Biden spoke with Xi Jinping on the phone today. Leaders of China and the United States agreed to de-escalate Taiwan tensions

  • Reserve Bank of New Zealand delivered a 25 basis point rate hike today, in-line with expectations. RBNZ signalled that it plans to tighten policy further but decisions will depend on inflation and employment developments

  • API report pointed to a 0.95 million barrel build in US oil inventories

  • CEO of AMC Theaters, the largest US movie theaters chain, said that his company will start accepting payments in cryptocurrencies, including Dogecoin, for gift cards

  • Bears dominate on the cryptocurrency market today. Bitcoin trades 0.5% lower on the day while altcoins drop over 2%. Dogecoin is an outperformer as it gains almost 3%

  • Precious metals and industrial metals trade lower as the US dollar strengthens. Oil gains while agricultural good trade mixed

  • GBP and USD are the best performing major currencies while NZD and AUD lag the most

RBNZ delivered a 25 bp rate hike today. As the move was expected, NZD failed to rally. While NZDUSD popped higher in a knee-jerk move (orange circle), gains were erased later on and the pair dropped below the 0.6935 support zone. Source: xStation5

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