Morning wrap (16.08.2022)

8:46 am 16 August 2022

  • US indices finished yesterday's session higher. S&P 500 jumped 0.40%, Dow Jones moved 0.45% higher while Nasdaq surged 0.62%. Russell 2000 added 0.19%
  • Indices from Asia-Pacific traded mostly higher today. S&P/ASX 200 rose 0.48% while Kospi jumped 0.22%. Indices from China traded higher. Nikkei fell 0.05%

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

  • PBOC considering buying bonds and loans of troubled developers and indicates more policy stimulus needed which lead to weakening of yuan

  • Standard Chartered lowered their China GDP forecasts and expect another 10bp rate cut

  • RBA minutes showed that the board expects to take further steps in the process of normalizing monetary conditions over the months ahead, but it is not on a pre-set path.

  • Iran has responded to the EU's draft nuclear deal, and anticipates a response from the other side within the next two days, according to ISNA

  • Cryptocurrencies are trading lower today. Bitcoin fell 0.8% and Ethereum dropped over 2.0%

  • Oil is trading slightly higher. WTI trades near $94.10 per barrel while Brent is testing $88.70 mark

  • Mixed moods prevail on the precious metals market. Gold trades 0.30% higher while silver dropped 0.50%

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

US500 managed to break above the major resistance zone around 4190 pts last week and is currently testing 200 SMA (red line). Nevertheless as long as the index sits below the downward trendline sentiment remains bearish. Source: xStation5

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