Morning wrap (07.01.2022)

9:55 am 7 January 2022

  • US indices finished yesterday's trading slightly lower. S&P 500 dropped 0.10%, Dow Jones moved 0.47% lower and Nasdaq dropped 0.13%. Russell 2000 gained 0.56%

  • Mixed moods could be spotted in Asia-Pacific with S&P/ASX 200 and Kospi gaining over 1% while Nikkei and indices from China trade slightly lower

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

  • Fed's Bullard said that the first rate hike should be delivered in March and trimming of balance sheet should start shortly afterwards

  • Chinese authorities asked domestic lenders to boost property loans due to troubled situation in the Chinese property market

  • Kassym-Jomart Tokayev, President of Kazakhstan, said that order in the country has largely been restored. Dozens of people died in clashes between protesters and Kazakhstan security forces supported by Russian forces

  • Josh Frydenberg, Australian Treasurer, said that review of RBA will be made after the upcoming federal elections scheduled for May

  • A major oil pipeline in Libya was repaired and country's oil output returned to around 1 million bpd 

  • CEO of Moderna said that the fourth shot of coronavirus vaccine may be needed to maintain immunity in the future

  • Japanese household spending dropped 1.3% YoY in November (exp. +1.6% YoY)

  • Cryptocurrencies took another hit overnight. Bitcoin tested $41,000 area - the lowest level since late-September 2021. Ethereum trades near $3,150 - the lowest level since beginning of October 2021

  • CAD and NZD are the best performing major currencies while JPY and CHF lag the most

  • Precious metals trade mostly lower. Gold is an exception as it trades flat

  • Oil gains while industrial metals trade mixed

BITCOIN smashed through the support zone at 78.6% retracement earlier this week and the downward move continues. Major cryptocurrency dropped to the lowest level since late-September 2021. Coin approaches a major support zone ranging above the psychological $40,000 mark. Source: xStation5

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