Morning wrap (06.09.2022)

• Indices from Asia traded mostly higher today. Nikkei traded 0.1% higher, Kospi added 0.2% while indices from China gained up to 1.2%. S&P/ASX 200 dropped 0.3%

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

• According to Reuters report, Gazprom said it will not resume flows via Nord Stream until Siemens repairs all faulty equipment. Russian officials said yesterday that flows will not resume until Western sanctions are lifted

• Reserve Bank of Australia delivered a 50 basis point rate hike putting the cash rate  at 2.35%. Decision was in-line with market expectations . RBA expects inflation to peak later this year and drop to 4% over 2023

• New UK Prime Minister Liz Truss is preparing a plan worth 130 billion GBP to lower energy bills. Part of the plan involves setting a fixed price for households with government covering the difference

• Russia said it will ship more oil to Asia in response to a price cap proposed by G7.It will also consider setting up its own insurer for oil trade in order to circumvent Western sanctions

• Japanese household spending increased 3.4% YoY in July (exp. 4.1% YoY)

• Cryptocurrencies trade higher with Bitcoin gaining 0.4% and Ethereum advancing almost 4%

• Oil is trading little changed today, holding onto gains made yesterday. Brent trades near $95 per barrel while WTI approaches $89

• Precious metals trade higher, thanks to the weaker US dollar. Gold gains 0.4% while silver trades 1.1% higher

• EUR and GBP are the best performing major currencies while JPY and USD lag the most

AUDUSD has been volatile in the aftermath of the RBA rate decision announcement but has managed to bounce off the 50-hour moving average and earlier-broken downward trendline in the 0.68 area. Source: xStation5