Morning wrap (08.06.2023)

• U.S. indexes closed yesterday's session in a weaker mood amid a sell-off in technology company stocks. The S&P 500 lost 0.32%, the Dow Jones rose 0.27% and the Nasdaq lost 1.76%. The standout was the Russell 2000, which recorded a strong session during which it gained 1.78%
• On Wall Street, stocks of major U.S. companies like Amazon (-4%), Meta Platforms (-2.7%), Nvidia (-3%) and Alphabet (-3.7%) lost heavily
• Goldman Sachs analysts believe that AI adoption resulting in productivity gains could lift the value of the S&P 500 9% higher from current levels in a baseline scenario (with a growth bias of 5% and 14% in extreme scenarios, respectively)
• Despite positive comments from Goldman Sachs and Stanley Druckenmiller regarding artificial intelligence, stocks of companies benefiting from the AI trend saw a correction
• Bond yields rose in Australia and Japan, while U.S. treasuries maintained their gains. Yields on 3-year bonds in Australia reached the highest level since 2012. 
• Japan's GDP data surprised on the upside (2.7% growth in Q1 vs. exp. 1.9%) strengthening the yen. As a result, USDJPY settled below 140 points
• The Bank of Canada's decision yesterday to raise rates by 25 bps despite the pause expected by the market did not cause a sharp reversal of expectations for the Fed's June decision. The market sees a 66% chance of keeping rates unchanged. At the same time, swaps fully price a 25bp hike at the July meeting
• USDCAD remains in the range of 1.336 - CAD strengthened sharply to this level yesterday after the BoC decision
• The sell-off of recent days continued on Japan's Nikkei index, which lost 0.86% amid weakness in technology companies. Chinese indices, including the technology Hang Seng traded flat
• DAX index futures pointed to a slightly lower opening of the trading session in Europe.
• Cryptocurrencies were unable to sustain the rebound that took Bitcoin above $27,000 yesterday. Currently, the major cryptocurrency is trading at $26,500, with smaller cryptocurrencies posting modest gains. Nearly 10% decline after yesterday's euphoric increases is recorded by cryptocurrency Metal
• Energy commodities are trading unchanged - oil is trading flat, and U.S natural. gas prices are trading 0.5% lower
• The dollar index USDIDX is again trading below 104 points and losing 0.12% with EURUSD up 0.10%
• Precious metals are trying to stem the sell-off and are gaining slightly - gold is trading 0.4% higher, silver is gaining 0.7%, platinum and palladium are gaining in the range of 0.85%

JAP225 continues its declines and loses nearly 5% from multi-year highs near 32,700 points. The MACD is close to confirming a bearish 'crossover, and the key support for a eventually deep correction is the level of 29,000 points near which is the 23.6 Fibonacci retracement of the March 2020 upward wave and previous price reactions. Source: xStation5