Morning wrap (05.11.2021)

• US indices finished yesterday's trading mixed. S&P 500 and Nasdaq reached new all-time highs after gaining 0.42% and 0.81%, respectively. Meanwhile, Dow Jones and Russell 2000 dropped 0.09% and 0.08%, respectively.

• Indices from Asia traded mostly lower today. Nikkei dropped 0.6%, Kospi moved 0.5% lower and indices from China traded 0.2-1.3% lower. S&P/ASX 200 gained 0.4%

• DAX futures point to a slightly lower opening of today's European session

• In spite of calls from US and Japan, OPEC+ decided to maintain its policy and will continue to increase output at a monthly pace of 400k bpd

• The United States may decide to release oil from strategic reserves to ease the situation on the market. However, Goldman Sachs expects such a move to provide only temporarily relief for prices

• According to Politico report, United States and China may reopen consulate offices and ease some visa restrictions

• Japanese Economy Minister said that measures accounting for surge in energy prices will be included in the next stimulus package

• According to some Japanese media, Japan's government is reportedly preparing cash handouts of 100k JPY to those under 18 years old (around $880)

• Australia's services PMI improved from 45.7 to 47.6 in October

• Bitcoin tested $62,500 area but has pulled back to $62,000 later on

• Precious metals gain, industrial metals trade mixed while oil drops

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

WTI (OIL.WTI) attempted to climb back above the $80 per barrel market during the Asian session but failed to do so. Price turned lower and a retest of recent lows in the $78.80 area cannot be ruled out. Source: xStation5