Morning wrap (13.06.2022)

• Indices from Asia-Pacific launched new week's trading lower. Nikkei dropped 3.0%, S&P/ASX 200 pulled back 1.2% while Kospi slumped 3.2%. Indices from China traded 0.6-3.2% lower

• European and US index futures trade lower. DAX futures trade 200 points below Friday's cash close

• Beijing is experiencing a renewed spike in Covid-19 cases. Authorities in the city decided to cancel some sporting activities and events

• 5 out of 25 districts in Shanghai have been locked down over the weekend

• Libya oil minister said that country's daily output dropped by 1.1 million barrels amid oil field closures

• Cryptocurrencies experienced a strong sell-off over the weekend with drop continuing today. Bitcoin drops 6% lower on the day and trades slightly above $25,000, Ethereum drops 8%

• Downward move on cryptocurrency markets is being fuelled by news from Celsius Network. Cryptocurrency lending and borrowing company said it suspends all withdrawals, transfers and swaps

• South Korean exports were 12.7% YoY lower in the first 10 days of June while imports were 17.5% YoY higher. Semiconductor exports increased 0.8% YoY. Exports to China were 16.2% YoY lower

• US dollar is gaining ground against major FX peers. EURUSD dropped below 1.05 while USDJPY jumped above 135.00 for the first time in 24 years

• Precious metals pull back amid USD strength. Platinum is the worst performer with a 1.4% drop

• Oil pulls back amid broad risk-off moods. Brent and WTI trade 1.1% lower on the day

Ethereum slumped below a $1,715 support zone on Friday and continued to move lower throughout the weekend. The coin is currently testing $1,330 support zone - the lowest price levels in over 15-months! Source: xStation5