Morning wrap (23.05.2022)

8:52 AM May 23, 2022

  • Indices from Asia-Pacific traded mixed at the beginning of a new week. Nikkei gained 0.6%, S&P/ASX 200 dropped 0.1%, Kospi traded flat and indices from China moved lower

  • US and European index futures trade slightly higher

  • ECB President Lagarde said that rate hike may come as soon as "a few weeks" after net asset purchases stop

  • Chinese authorities consider shortening hotel quarantines to 1-week in order to encourage international visitors. However, pandemic situation is still not under control with Beijing reporting a record number of new daily cases today 

  • Russia published a list of over 900 Americans that will be banned from entering Russia, including President Biden and Vice-President Harris. The move is retaliation for similar measures taken by the United States

  • Labor Party won a parliamentary election in Australia, although it is not yet known whether it will be able to form a majority government. Anthony Albanese, a new prime minister, said that relationship with China will remain difficult

  • Belgium introduced a mandatory 21-day quarantine for those who were exposed to monkeypox. United Kingdom also advises high-risk monkeypox contacts to self-isolate

  • Cryptocurrencies are trading slightly higher on Monday. Bitcoin gains 0.5% while Ethereum trades 0.7% higher

  • Oil is trading slightly higher at the beginning of a new week. Precious metals gain on the back of USD weakening

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

The Australian dollar is trading higher following parliamentary elections in Australia. Elections resulted in a change of government with the Labor party scoring a win. AUDUSD is making a break above a local market geometry today, signaling potential trend reversal. Source: xStation5

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