Morning wrap (28.10.2021)

6:59 AM 28 October 2021
  • US indices took a steep drop at the end of a Wall Street session yesterday. S&P 500 dropped 0.51%, Dow Jones declined 0.74% and Russell 2000 plunged 1.90%. Nasdaq finished flat

  • Asian equities followed US peers lower. Nikkei dropped 0.8%, S&P/ASX 200 moved 0.2% lower while Kospi declined 0.1%. Indices from China traded 0.2-1.0% lower

  • DAX futures point to a more or less flat opening of the European session

  • Iran and the European Union agreed to restart nuclear talks. Brent and WTI drop over 1%

  • The Bank of Japan left interest rates and other settings of the monetary policy unchanged at today's meeting. Bank released new forecasts and expects lower inflation and lower growth for this fiscal year

  • Central Bank of Brazil hiked main interest rate by 150 basis points, to 7.75% (exp. +100 bp)

  • According to Wall Street Journal, US SEC is about to ban leveraged Bitcoin funds

  • The Reserve Bank of Australia did not buy 10-year government bonds at an auction today, suggesting it may have given up on yield curve control. 10-year Australian yield jumped and is now over 4 times higher than targeted yield

  • Japanese retail sales dropped 0.6% YoY in September (exp. -2.4% YoY)

  • Bitcoin moved sideways following recent steep drops. The coin trades near $59,000

  • Precious metals and industrial metals while energy commodities drop

  • NZD and JPY are the best performing major currencies while CHF, AUD and CAD lag the most

Oil dropped following a big build in US oil inventories as well as news of new nuclear talks between Iran and EU. Brent (OIL) reached a 3-week low but has managed to bounce off the lower limit of the market geometry ($81.70). Source: xStation5

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