Morning wrap (13.09.2022)

• US indices benefitted from risk-on moods yesterday and finished the session higher. S&P 500 added 1.06%, Dow Jones gained 0.71% and Nasdaq jumped 1.27%. Russell 2000 gained 1.23%

• Indices from Asia-Pacific traded higher as well. Nikkei gained 0.2%, S&P/ASX 200 added 0.8% and Kospi rallied 2.7%. Indices from China traded up to 1% higher

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

• US Secretary of State Blinken said that Iran's latest response to EU proposal is a step backwards in nuclear deal talks

• S&P Global does not expect India or China to join the G7 proposal on Russian oil price cap. However, S&P thinks that as others will embrace the price cap, Russia will have to offer even greater discounts to India and China, what would further hurt its revenue

• Armenia said that it came under artillery fire from Azerbaijan last night. Azerbaijan confirmed shelling but said it was response to provocative actions by Armenian army near the border

• Morgan Stanley lowered its Brent price forecast for Q3 and Q4 2022 to from $110 to $98 per barrel. The Bank also said it expects Russian oil flows to drop considerably going forward

• Japanese PPI inflation accelerated from 8.6 to 9.0% YoY in August (exp. 8.9% YoY)

• Cryptocurrencies are trading higher. Bitcoin adds 0.3% and approaches $22,500 mark

• Energy commodities trade lower this morning with Brent and WTI dropping around 0.4% each

• Precious metals pull back. Gold drops 0.2% while silver trades 0.7% lower. Palladium slumps almost 5%

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

Precious metals underperform this morning. Palladium is a top laggard from the group, trading almost 5% lower at press time. Price pulls back from the 2,235 resistance zone following a rapid 4-day rally. Source: xStation5