Morning wrap (05.10.2023)

• US indices finished yesterday's trading higher - S&P 500 gained 0.81%, Dow Jones moved 0.39% higher and Nasdaq surged 1.35%. Small-cap Russell 2000 added around 0.1%
• Relief on stock markets came amid pullback in yields and drop in oil prices
• Bonds started to recover after the 30-year US yield hit 5%. 10-year US yield is now at 4.71%, down from a yesterday's daily high of 4.88%
• Indices from Asia-Pacific traded higher today, following into footsteps of US peers. Nikkei gained 1.5%, S&P/ASX 200 moved 0.5% higher, Kospi traded 0.3% higher and Nifty 50 added 0.7%
• European index futures point to a higher opening of the cash session on the Old Continent today

• Citi expects Chinese GDP to grow 5.0% this year, up from the previous forecast of 4.7%
• Australian trade balance for August came in at A$9.64 billion (exp. A$8.8 billion)
• South Korean CPI accelerated from 3.4% to 3.7% YoY in September (exp. 3.4% YoY). Core CPI slowed from 3.5% to 3.3% YoY
• According to Russian media, Russia may ease a ban on diesel exports in the coming days
• Major cryptocurrencies are trading little changed today - Bitcoin and Ethereum trade flat while Dogecoin drops 0.3%
• Energy commodities trade higher this morning - oil gains 0.2% while US natural gas prices are up 0.6%
• Precious metals benefit from pullback on USD market and trade higher. Gold gains 0.3%, silver jumps 1.2% and platinum trades 0.4% higher
• AUD and NZD are the best performing major currencies while USD and EUR are lagging the most

A strong pick-up in yields has pushed GOLD price down to the lower limit of the bearish channel. Declines seem to have been halted for now but resumption of sell-off on the bond market may see precious metals move even lower. Source: xStation5