Morning wrap (14.12.2022)

• US indices finished yesterday's session higher, however erased most of the early gains. S&P 500 gained 0.73%, Dow Jones moved 0.30% higher and Nasdaq jumped 1.01%. Russell 2000 added 0.76%

• Indices from Asia-Pacific traded higher as well. Nikkei gained 0.76%, S&P/ASX 200 traded 0.67% higher, Kospi jumped 1.0% and indices from China traded higher

• DAX futures point to a slightly higher opening of the European cash session

• JP Morgan expects Fed peak rate to 5% in Q1 2023

• Morgan Stanley has raised its China GDP forecast for 2023 to 5.4% from 5%

• China is preparing a US$143bn support package for its semiconductor industry, according to Reuters

• The US is reportedly adding over 30 Chinese firms to trade blacklist, according to Bloomberg

• RBNZ's Hawkesby said the central bank needs to do even more to lower inflation

• New Zealand Treasury expects three quarters of a shrinking economy 

• National Australia Bank forecasts RBA to hike rates by 25bp at each of the next two meetings

• Cryptocurrencies are trading mixed. Bitcoin rose 0.1%, Ethereum trades 0.3% lower and Dogecoin jumped 0.5%. 

• Oil is trading slightly lower today, as API data showed an unexpected build-up of oil inventories.

• Precious metals rose despite relatively strong USD- gold gains 0.1% while silver trade 0.25% higher

• JPY and EUR are the best performing major currencies while CAD and NZD lag the most

OIL price rose over 5.0% so far this week, however buyers are struggling to break above major resistance at $80.20, which coincides with 78.6% Fibonacci retracement of the upward wave launched in December 2021. Source: xStation5