Morning wrap (09.09.2022)

• US indices finished yesterday's session higher as investors digested latest hawkish comments from FED Chair Powell. S&P 500 rose 0.66%, Dow Jones moved 0.61% higher while Nasdaq added 0.60%. Russell 2000 jumped 0.56%

• Indices from Asia-Pacific traded higher today. Nikkei gained 0.60%, S&P/ASX 200 rose 0.68% while Kospi added 0.33%. Indices from China traded higher. 

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

• Japan’s finance minister Suzuki said is not ruling out any options on Forex market, while BOJ governor Kuroda said he will watch FX moves carefully, sparking speculations about potential BOJ intervention

• Honda is planning to reduce car output by up to 40% at two Japanese factories for the rest of the month due to ongoing supply chain and logistical problems

• China CPI for August rose to 2.5% from 2.4% YoY (expected 2.8%)

• UK retailers reported the slowest growth in sales since the end of COVID-19 lockdowns

• The Biden administration is weighing an executive order to screen and possibly restrict U.S. overseas investment in China, according to WSJ

• Yellen believes that lower gasoline prices may reduce the CPI rate in August 

• Credit Agricole CIB Research argues that it would be premature for the SNB to resume its intervention against CHF strength around current levels.

• Cryptocurrencies are trading sharply higher today. Bitcoin jumped over 6.0% and Ethereum gained nearly 5.0% amid lack of strong catalyst. 

• Oil is trading over 0.60% higher. WTI approaches $84.00 per barrel while Brent is testing $89.70 mark

• Upbeat moods prevail on the precious metals market. Gold gains 0.70% and silver jumped 1.70%

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

USDJPY pair fell below the 143.00 level amid rising expectations of BOJ intervention. Source: xStation5