Morning wrap (24.11.2022)

6:44 AM November 24, 2022
  • US indices finished yesterday's trading higher. S&P 500 gained 0.59%, Dow Jones moved 0.28% higher and Nasdaq added 0.99%. Russell 2000 traded 0.17% higher

  • FOMC minutes showed that a number of Fed members sees slowing of rate hikes as appropriate in near future. However, it also noted that some members saw terminal level of rates above market and FOMC projections

  • Minutes release was seen as dovish and led to a jump on equity markets and a drop on USD market

  • Indices from Asia-Pacific trade mostly higher. Nikkei and Kospi gained 1% each, S&P/ASX 200 added 0.1% and Nifty 50 traded 0.6% higher. Chinese equities underperformed with most of the major Chinese indices trading lower

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

  • China reported 29,754 new Covid cases - the highest official count since the start of the pandemic. More Chinese cities prepare mass testing and imposes movement restrictions

  • BoC Governor Macklem said that there is a risk that inflation in Canada becomes entrenched. He also said that tightening will come to an end but BoC is not there yet

  • Bloomberg reports that People's Bank of China may decide to cut reserve requirement ratio. ING sees possibility of such a move in the next few days

  • Moody's lowered outlook for Chinese banks to 'negative' citing slowing economic growth, pandemic restrictions and property market correction

  • RBNZ Governor Orr said that there were more discussion on '75 bp vs 100 bp hike' than on '50 bp vs 75 bp hike' at the latest meeting

  • Japanese manufacturing PMI dropped from 50.7 to 49.4 in November (exp. 50.9)

  • Cryptocurrencies trade higher today with Bitcoin gaining 1%, Ethereum trading 2.5% higher and Dogecoin adding 2%

  • Oil is trading little changed on the day

  • Gold gains 0.2% on USD weakening but other precious metals fail to catch a bid. Silver trades flat and platinum drops 0.4%

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

USDJPY deepened declines yesterday following dovish minutes release and the move continues today. The pair broke below 140.00 mark and is now testing support zone ranging around 139.00 handle. Source: xStation5

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