- US indices finished yesterday's trading higher after a volatile session that saw Wall Street benchmarks swing between gains and losses
- S&P 500 gained 0.18%, Dow Jones moved 0.10% higher and Nasdaq jumped 0.30%. Small-cap Russell 2000 was a laggard with an around 1.3% drop
- Indices from Asia-Pacific traded lower today - Nikkei dropped 1.4%, S&P/ASX 200 traded 0.3% lower, Kospi plunged 2.3% and Nifty 50 declined 0.4%. Indices from China traded up to 1.3% lower
- DAX futures point to a lower opening of the European cash session today
- Reserve Bank of Australia delivered a 25 basis point rate hike, in-line with expectations. Cash rate was increased to 4.35% - the highest level in 12 years
- RBA statement showed that further tightening will remain dependant upon incoming data and evolving assessment of risks. Bank noted that high inflation continues to pressure real incomes and household consumption
- AUD pulled back following an in-line rate decision and lack of strong guidance for more tightening in the future
- Lael Brainard, White House top economic adviser, said that US economy is performing exceptionally well and job creation remain strong and sustainable
- Fed Kashkari said that undertightening is a risk and that he is not sure whether rates hike in the US are over already
- Israel Prime Minister Netanyahu said that his country is open to short pauses in fighting to allow aid into and hostages out of Gaza but opposes a general ceasefire
- Chinese exports dropped 6.4% YoY in October (exp. -3.3% YoY) while imports were 3.0% YoY higher (exp. -4.8% YoY). Trade balance for October came in at $56.53 billion (exp. $82 billion)
- Japanese household spending dropped 2.8% YoY in September (exp. -2.6% YoY)
- Cryptocurrencies are pulling back - Bitcoin drops 0.7%, Ethereum trades 0.6% lower while Dogecoin declines 1.2%
- Energy commodities drop - oil is down 0.8% while US natural gas prices decline 0.3%
- USD strengthening is putting pressure on precious metals today - gold drops 0.3%, silver declines 0.8% while platinum is down 0.7%
- USD and GBP are the best performing major currencies while AUD nad NZD lag the most
AUDUSD is dropping today following RBA rate decision. While RBA met market expectations, it failed to provide a clear guidance what's next. Source: xStation5
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