Morning wrap (07.08.2023)

• Indices from Asia-Pacific traded mixed during the first session of a new week - Nikkei and Nifty 50 gained while Kospi, S&P/ASX 200 and indices from China traded lower

• US and European index futures opened slightly higher after the weekend

• Overall, markets are not experiencing any major moves at the beginning of a new week as newsflow today and earlier over the weekend was very light

• Oil is trading slightly higher following weekend strikes on Russian naval vessels. Attacks of Ukrainian maritime drones are becoming more frequent, threatening Russia seaborne oil exports via Black Sea

• Fed Bowman said that more rate hikes will be needed. While Bowman said that recent decline in core inflation is a positive sign, she also said that inflation still remains well above target

• NFP report released on Friday disappointed, slightly lowering market odds for a September rate hike. US CPI report for July, which will be released this Thursday, will be a key event of the week when it comes to impact on Fed's policy

• Cryptocurrencies are trading higher with Bitcoin and Dogecoin adding 0.2%, Ethereum jumping 0.6% and Litecoin moving 0.5% higher

• Precious metals trade mixed - gold drops 0.1%, silver declines 0.3%, platinum jumps 0.7% and palladium rallies 1%

• AUD and NZD are the best performing major currencies while JPY and CHF are top laggards

Oil launched this week's trading following weekend strikes on Russian naval vessels. However, gain was small and started to be quickly erased as bulls continued to lack power to break above $83.25 resistance zone. Source: xStation5