Morning wrap (22.07.2022)

8:55 am 22 July 2022

  • US indices had another upbeat session yesterday. S&P 500 gained 0.99%, Dow Jones moved 0.51% higher and Nasdaq jumped 1.36%. Russell 2000 added 0.48%

  • Weaker moods could be spotted during the Asian session. S&P/ASX 200 moved 0.1% lower, Kospi dropped 0.5% and indices from China traded down. Nikkei was outperformer with 0.4% gain

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

  • Italian president Mattarella dissolved parliament yesterday, following the resignation of Prime Minister Mario Draghi. The country will hold snap elections on September 25, 2022

  • US President Biden tested positive for Covid-19 yesterday and is experiencing "very mild symptoms". Joe Biden will isolate but keep on carrying out his duties 

  • Japanese manufacturing PMI dropped from 52.7 to 52.2 in July (exp. 53.1)

  • Snap slumped 26% in the after-hours trading following release of Q2 2022 earnings. Company reported revenue at $1.11 billion (exp. $1.14 billion) and adjusted loss per share at $0.02 (exp. -$0.02). Snap said that it will not provide guidance for Q3 amid deteriorating macroeconomic environment

  • Major cryptocurrencies are trading lower today with Bitcoin down 0.6% and Ethereum dropping 0.7%. However, big gains can be seen on some lesser known altcoins, like Kusama (+8.7%) or Neo (+6.7%)

  • Oil is trading higher with WTI gaining around 0.9%. Precious metals are pulling back amid USD strengthening

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

EURUSD has been very volatile yesterday following the ECB decision. However, ultimately the pair has given back all the gains and is now trading near pre-announcement levels. A key point to note is that a short-term trading range (1.017-1.027) has been maintained. Source: xStation5

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