Morning wrap (28.10.2022)

6:56 AM 28 October 2022
  • US indices finished yesterday's trading mixed. S&P 500 dropped 0.61%, Dow Jones added 0.61%, Nasdaq plunged 1.63% and Russell 2000 ticked 0.11% higher

  • US index futures moved lower in the after-hours trading, following disappointing earnings release from Amazon

  • Amazon shares dropped 12% in the after-market. Company reported 15% revenue growth in Q3 2022 to $127.1 billion (exp. $127.5 billion). However, company reported a weakish guidance for Q4 expecting sales to grow 2-8% YoY and reach $140-148 billion, while market expected $155.1 billion guidance

  • Apple traded little changed in the after-hours following the release of Q3 2022 earnings report. Company reported EPS of $1.29 (exp. $1.27) and revenue at $90.15 billion (exp. $88.9 billion). Beat in Mac revenue offset misses in iPhone and iPad revenue. Services revenue also missed expectations. Company did not provide guidance for Q4 2022

  • Indices from Asia-Pacific traded lower during the final trading session of the week. Nikkei dropped almost 1%, S&P/ASX 200 moved 0.9% lower and Kospi traded 0.7% down. Indices from China traded up to 3% lower

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

  • The Bank of Japan left policy settings unchanged at a meeting today. The Bank said it expects inflation to slow by mid-2023. BoJ said that it will review its ETF buying programme

  • International Monetary Fund cut its forecast for Chinese GDP growth in 2022 from 4.4 to 3.2%

  • The Japanese unemployment rate ticked higher from 2.5 to 2.6% in September (exp. 2.5%)

  • French GDP growth reached 0.2% QoQ in Q3 2022 (exp. 0.2% QoQ)

  • Cryptocurrencies are trading lower. Bitcoin drops 0.8%, Etehereum trades 0.9% lower and Ripple is 0.7% down. Dogecoin plunges over 7%

  • Oil is trading lower amid broad pullback in risk assets. Brent trades 0.6% lower while WTI drops 0.7%

  • Precious metals trade mixed - gold and silver drop while platinum and palladium gain

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

Amazon provided a disappointing guidance for Q4 2022, triggering another pullback on US100 in the after-hours trading yesterday. Index tested local low from October 21 in the 10,940 pts area before recovering slightly during the Asian session. Source: xStation5

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