Morning wrap (22.10.2021)

8:50 am 22 October 2021

  • US indices finished yesterday's trading higher with S&P 500 gaining 0.30% and reaching a new all-time high. Nasdaq added 0.62% while Dow Jones dropped 0.02%

  • Risk trades on the FX market received a boost during the Asian session after it was reported that Evergrande made $83.5 million coupon payment that was due September 30, 2021

  • Asian stock trading session was mixed. Nikkei added almost 0.4%, indices from China traded 0.1-1.5% higher, S&P/ASX 200 finished flat and Kospi dropped 0.2%

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

  • United States want to scheduled Xi-Biden virtual meeting for next month

  • New Bank of England chief economist Pill said that he expects inflation to reach 5% in early-2022. He also said that pandemic emergency programmes are no longer needed

  • South Korea will temporarily cut fuel taxes to address surging prices. China has reportedly waived collection of taxes from coal companies

  • Nissan plans to cut global production by 30% in October and November due to chip shortages

  • Intel reported Q3 revenue at $18.1 billion (exp. $18.24 billion) and Q3 EPS at $1.71 (exp. 1.11). Shares of the company dropped in the after-hours trading as Intel hinted that component shortages are impacting its chip output

  • Preliminary Japanese manufacturing PMI for October reached 53.0 (exp. 51.4)

  • Preliminary Australian manufacturing PMI for October reached 57.3 (exp. 58.6)

  • Bitcoin pulled back below $63,000 during the Asian trading hours

  • Precious metals are trading higher, along with industrial metals. Brent and WTI trade around 0.6% lower

  • AUD, CAD and NZD are the best performing major currencies while safe havens like JPY, USD and CHF lag the most

While S&P 500 cash index finished yesterday's trading at the highest level in history, S&P 500 futures (US500) are still trading slightly below record peak. Should we see a break to a fresh records, the next potential resistance to watch can be found near the 127.2% exterior retracement of recent correction (4,625 pts). Source: xStation5

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