Morning wrap (20.08.2021)

9:07 am 20 August 2021

  • US indices finished yesterday's trading mixed. S&P 500 gained 0.13%, Nasdaq added 0.11% while Dow Jones dropped 0.19% and Russell 2000 moved 1.22% lower

  • Stocks in Asia traded lower. Nikkei dropped 1%, Kospi declined 1.4% and indices from China were sliding over 2%. S&P/ASX 200 traded flat

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

  • Lockdown in New Zealand has been extended until Tuesday, August 24. Authorities say that all of the cases reported in recent days seem to be linked to the initial case.

  • People's Bank of China left the 1-year prime rate unchanged at 3.85%, in-line with expectations. Five-year rate was left unchanged at 4.65%

  • Japanese core CPI inflation slowed from +0.2% to -0.2% YoY in July (exp. -0.4% YoY)

  • Precious metals trade higher. Palladium and platinum are top performers gaining 1.1 and 0.8%, respectively

  • Oil and industrial metals gain. WTI and Brent trade around 0.4% higher each while most industrial metals gain over 1%

  • Bitcoin approaches $47,000 area

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

Nikkei (JAP225) deepened an ongoing downward move and broke to the lowest level since the beginning of the year. Index is approaching the support zone in the 26,800 pts area, where 50% retracement of the upward move started in November 2020 can be found. Source: xStation5

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