Morning wrap (05.09.2022)

6:48 AM September 5, 2022
  • Russia announced on Friday that it will completely halt gas flows to Europe via the Nord Stream 1 pipeline indefinitely

  • European assets are set for a rough start of new week's trade with EURUSD dropping below 0.99 for the first time in 20 years and DAX futures pointing to an over-3% bearish price gap at the launch of European cash session

  • Indices from the Asia-Pacific are trading mixed at the beginning of a new week. Nikkei trades flat, S&P/ASX 200 gains while Kospi and indices from China drop

  • According to Bloomberg report, Biden administration is considering restricting investments of US companies into Chinese technology companies

  • G7 countries agreed to impose a price cap on Russian oil. Details are yet to be worked out but the measure will be implemented in December

  • According to media report, OPEC+ likely to leave output unchanged at a meeting this week

  • Germany ruling coalition agreed on a €65 billion deal to subsidize energy prices for consumers and businesses

  • Chinese services PMI (Caixin/Markit) dropped from 55.5 to 55.0 in August (exp. 54.0)

  • Australian business inventories increased 0.3% QoQ in Q2 2022 (exp. 1.5% QoQ)

  • Cryptocurrencies are trading mostly lower on Monday but scale of drop does not exceed 3%. Bitcoin and Ethereum trade 0.7% lower

  • Energy commodities trade higher at the beginning of a new week. Brent gains 2.2% while WTI trades 2% higher

  • Precious metals trade slightly higher. Gold gains 0.1% while silver advances 0.4%

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

 Euro Stoxx 50 (EU50) extends Friday's drop triggered by Russian gas flow halt. Index is making a break below the 61.8% retracement of the upward move launched after US presidential elections in November 2020. The closest support to watch can be found near recent lows in the 3,400 pts area. Source: xStation5


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