06:59 · 21 October 2022

Morning wrap (21.10.2022)

  • US indices deepened Wednesday's declines yesterday and finished lower for the second day in a row. S&P 500 dropped 0.80%, Dow Jones moved 0.30% lower and Nasdaq was 0.61% down. Russell 2000 dropped 1.24%

  • Indices from Asia-Pacific traded lower today. Nikkei dropped 0.5%, S&P/ASX 200 moved 0.8% lower and Kospi traded 0.2% down. Indices from China traded mixed

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

  • Germany dropped its opposition and agreed to an EU-wide natural gas price cap plan. Plan will be discussed at the EU summit that begins today

  • Bank of Japan announced that it will increase the amount of bonds it is buying, following a recent pick-up in yields

  • Japanese core CPI inflation accelerated from 2.8 to 3.0% YoY in September (exp. 3.0% YoY). Headline CPI remained unchanged at 3.0% YoY

  • Shares of Snap plunged 27% in the after-hours trading, after the company missed Q3 revenue estimate. Poor performance of Snap also served as a drag on other stocks dependant on ad revenue, like Meta (-4.0%), Pinterest (-7.1%) or Alphabet (-1.9%)

  • Oil is trading lower this morning and so are precious metals as USD strengthening is exerting pressure on commodity prices

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

EURUSD halted an overnight pullback at 200-hour moving average (purple line) and is attempting to launch a recovery move. Source: xStation5

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