Morning wrap (10.02.2023)

• US indices finished yesterday's trading lower. S&P 500 dropped 0.88%, Dow Jones moved 0.73% lower and Nasdaq slumped 1.02%. Russell 2000 plunged 1.40%

• Indices from Asia-Pacific traded mostly lower today. Nikkei rose 0.26%, S&P/ASX 200 dropped 0.75%, Nifty 50 moved 0.25% lower and Kospi fell 0.66%. Indices from China traded lower as well

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

• ECB's Nagel said decisive monetary policy action is necessary to reduce the risk of an unanchoring of long-term inflation expectations

• Ukraine - heavy shelling reported in Kharkiv

• BoJ Gov. Kuroda said the benefits of easing are greater than side effects

• BOJ's Amamiya sees no need now to make yield curve control more flexible. In his opinion its appropriate to maintain current ultra-loose monetary policy

• Japan PPI in January 0.0% m/m vs. expected 0.3%

• RBA revises up forecasts for core inflation and expects that further increases in interest rates will be needed 

• China's inflation rose to 2.1% YoY in January from 1.8% in December, compared with market forecasts of 2.2%

• Cryptocurrencies are trading slightly higher, trying to erase yesterday's heavy losses. Bitcoin gains 0.3%,  Ethereum adds 0.7%

• Energy commodities fell slightly with both Brent and WTI trading over 0.20% lower today

• Precious metals lose some ground amid stronger USD. Gold fell 0.2% while silver erased early losses and trades flat

• USD and CAD are the best performing major currencies while EUR and AUD lag the most

USDJPY bounced off yesterday from local support at 130.60 and moves higher today after dovish comments from BoJ members. Source: xStation5