Morning wrap (05.06.2023)

• Oil prices launched new week's trading with a bullish price gap following OPEC+ meeting

• OPEC+ agreed to extend extend current output cuts through 2024, while previous agreement assumed they would last until the end of 2023

• On top of that, Saudi Arabia will make a voluntarily 1 million barrel output cut in July. This cut is for one month only but Saudi energy minister already said it could be extended

• Oil opened with around 1.5% bullish price gap. However, this gap has been almost completely filled during the Asian session

• Indices from Asia-Pacific traded mostly higher today, responding to strong gains made on Wall Street on Friday. Nikkei gained 1.9%, S&P/ASX 200 added 0.9%. Kospi traded 0.6% higher and Nifty 50 advanced 0.4%. Indices from China traded slightly lower

• European index futures point to a flat opening of the cash trading session on the Old Continent today

• Wall Street Journal reports that US bank may see a 20% increase in capital requirements

• Australian business inventories increased 1.2% QoQ in Q1 2023 (exp. +0.5% QoQ)

• Chinese Caixin services PMI moved from 56.4 to 57.1 in May (exp. 55.3)

• Final Australian manufacturing PMI showed a drop from 53.7 to 52.1 in May (51.8 in first release)

• Cryptocurrencies are trading lower - Bitcoin drops 1.5%, Ethereum trades 1.8% lower and Dogecoin declines 1.6%

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

• AUD and USD are the best performing major currencies while CHF and GBP lag the most

Brent (OIL) launched new week with a bullish price gap and tested $77.50 area. Move was triggered by Saudi Arabia announcing a 1.5 million barrel output cut for July. However, the majority of gains have been erased already. Source: xStation5