Morning wrap (24.05.2022)

• US indices rallied yesterday with S&P 500 gaining 1.86%, Dow Jones adding 1.98% and Nasdaq moving 1.59% higher. Russell 2000 gained 1.10%

• Moods deteriorated after close of the Wall Street session with S&P 500 futures trading over 1% below cash close

• Indices traded lower during today's Asian session. Nikkei dropped 0.8%, S&P/ASX 200 moved 0.2% lower and Kospi plunged 1.3%. Indices from China trades as much as 1.7% lower

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

• Fed's Daly said that the US economy still has momentum and she does not expect a recession. Fed's George said that sees US interest rates near 2% by August

• Japanese manufacturing PMI dropped from 53.5 to 53.2 in May. Services PMI jumped from 50.7 to 51.7

• Australian manufacturing PMI dropped from 57.9 to 55.3 in May. Services PMI dropped from 56.6 to 53.0

• Snap plunged 30% in after-hours trading as the company's CEO said that revenue and earnings targets will be missed this quarter. Company also warned that macroeconomic environment has deteriorated and it will slow hiring this year

• Cryptocurrencies pull back but scale of moves is minor. Ethereum drops 0.6% while Bitcoin manages to hold flat

• Both Brent and WTI are trading around 1% lower today

• Precious metals pull back. However, gold resists the trend and trades slightly higher

• USD and JPY are the best performing major currencies while NZD and AUD lag the most

US indices finished Wall Street session with solid gains but moods deteriorated shortly after close. Dow Jones (US30) failed to break above 200-hour moving average and 61.8% retracement of May 17-20 correction, and a pullback was launched. Source: xStation5