Morning wrap (14.01.2022)

6:50 AM January 14, 2022
  • Wall Street indices plunged yesterday. S&P 500 dropped 1.42%, Dow Jones moved 0.49% lower and Nasdaq slumped 2.51%. Russell 2000 dropped 0.76%

  • Declines on Wall Street are blamed on increasingly hawkish position of the Federal Reserve

  • Stocks in Asia also traded lower. Nikkei and Kospi dropped 1.3% while S&P/ASX 200 moved 1.1% lower. Indices from China also traded lower but declines were smaller than in other parts of the region

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

  • White House confirmed that President Biden chose Sarah Bloom Raskin, Philip Jefferson and Lisa Cook as remaining Fed nominees

  • Fed's Harker said that action on inflation is required. Fed's Daly said it's reasonable to hike rates in March. Fed's Waller said that 3 rates hikes in 2022 are good baseline scenario but four or five hikes cannot be ruled out if inflation stays elevated

  • Chinese exports increased 20.9% YoY in December (exp. 20% YoY) while imports were 19.5% YoY higher (exp. 26.3% YoY). Trade balance for December showed a $94.46 billion surplus (exp. +$74.5 billion)

  • Japanese PPI inflation slowed from 9.0% to 8.5% YoY in December (exp. 8.8% YoY)

  • According to Reuters report, Tesla delayed start of Cybertruck production to Q1 2023

  • Major cryptocurrencies trade slightly higher today. Dogecoin rallies over 15% after Elon Musk said that Tesla merch is now buyable with Dogecoin

  • Precious metals trade higher while oil trades flat

  • CAD and JPY are the best performing major currencies while USD and CHF lag the most

Dogecoin rallies after Elon Musk announced it can be used for payments in Tesla shop. Coin reached a daily high near 21.20 and pared part of the gains later on. Price is currently testing 0.1935 price zone as a support. Source: xStation5

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