Morning wrap (21.04.2022)

8:56 am 21 April 2022

  • US indices finished yesterday's trading mixed. Dow Jones gained 0.71%, S&P/ASX 500 finished flat while Nasdaq dropped 1.22%. Russell 2000 gained 0.37%

  • Indices traded mixed during the Asia session. Nikkei gained 1.2%, S&P/ASX 200 added 0.4%, Kospi jumped 0.5% while indices from China traded lower

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

  • Chinese President Xi urged countries to drop Cold War mentality and said that decoupling, cutting off supply and pressure will not work to improve situation

  • Nomura lowered GDP forecast for China to 3.9% in 2022 (4.3% previously)

  • Imports of Russian steel-making coal to China more than doubled in March 2022. China took opportunity of discounts on Russian energy commodities

  • Pierre Wunsch, Belgian central bank chief and ECB policymaker, said that interest rates in the euro area may turn positive this year. He also said he is ready to support hike at meeting in June

  • Tesla (TSLA.US) reported Q1 revenue at $18.8 billion (exp. $17.9 billion) and EPS at $3.22 (exp. $2.26). EV manufacturer said that it expects 50% average annual growth in vehicle deliveries. Tesla CEO Elon Musk said that factories may run below capacity for the remainder of 2022 amid supply chain issues. Stock gained 5% in after-hours trading

  • New Zealand CPI inflation accelerated from 5.9 to 6.9% YoY in Q1 2022 (exp. 7.1% YoY)

  • Oil is trading around 0.6% higher this morning. Brent trades slightly below $108 per barrel while WTI trades slightly above $103 per barrel

  • Precious metals pull back. Silver and palladium are top underperformers, dropping around 0.6% each

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

Dow Jones (US30) managed to gain during a mixed Wall Street session yesterday. The index is testing a 35,200 pts resistance zone, marked with a local high from late-March. So far, earnings season has not resulted in any major moves on the Dow Jones index. However, it should be noted that a relatively small number of Dow Jones members reported already. Source: xStation5

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