Morning wrap (17.06.2021)

8:49 am 17 June 2021

  • US indices finished yesterday's trading lower. S&P 500 dropped 0.54%, Dow Jones declined 0.77%, Nasdaq closed 0.24% lower and Russell 2000 dipped 0.23%

  • Stocks from Australia, Japan and South Korea followed into footsteps of US peers and moved lower. Indices from China gained

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

  • FOMC slightly boosted the IOER rate yesterday. Dot-plot pointed to 2 rate hikes in 2023

  • Bank of Canada Governor Macklem said that recent pick-up in inflation results from base effects

  • Reserve Bank of Australia Governor Lowe said that it is premature to consider ending of bond buying programme

  • New Zealand GDP increased 1.6% QoQ in Q1 2021 (exp. 0.5% QoQ)

  • Australian employment increased by 115.2k in May (exp. 30.5k)

  • Bitcoin dropped below $39,000 mark

  • Gold dropped following the FOMC decision and is trying to regain ground today. Oil and industrial metals trade lower

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

Gold took a hit yesterday after FOMC hinted that 2 rate hikes may be coming in 2023. Precious metal dropped over 2% and tested $1,800 area. Source: xStation5

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