Morning wrap (05.10.2021)

• US indices finished yesterday's session lower with S&P 500 dropping 1.30%, Dow Jones moving 0.94% lower and Nasdaq plunging 2.14%

• Deterioration in moods yesterday was triggered by jump in energy prices as well as broad website outages

• OPEC decided not to change its output policy and continue with increasing daily production at the pace of 400k barrels per month. Decision triggered a spike in oil prices and pushed indices lower

• Outages of popular social media services like Facebook or Twitter as well as issues with numerous cloud services has exerted pressure on tech shares yesterday and made Nasdaq Wall Street's top underperformer

• Downbeat moods extended into the Asian trading hours. Nikkei dropped 2.4%, Kospi moved 1.9% lower and S&P/ASX 200 declined 0.4% 

• DAX futures point to a more or less flat opening of today's cash session in Europe

• According to CNN report, Biden has reportedly lower its demand for spending package to a $1.9-2.2 trillion package

• The Reserve Bank of Australia left rates unchanged at today's meeting. Asset purchases were left unchanged at A$4 billion per week. RBA does not expect a rate hike before 2024

• According to a Bloomberg report, Chinese developer Fantasia Holdings defaulted on a bond maturing yesterday. In other news, Fitch downgraded another Chinese developer - Sinic - from "CCC" to "C"

• Cryptocurrencies traded sideways during the Asian session. Bitcoin, Litecoin, Dogecoin and Ethereum trade little changed on the day

• Precious metals trade lower, along with industrial metals. Energy commodities - oil and natural gas - gain

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

Nasdaq-100 (US100) plunged below the lower limit of the local market geometry yesterday and reached the lowest level since late-June 2021. In theory, this points to a trend reversal. However, bulls have managed to halt declines and are trying to push the index higher. Source: xStation5