Morning wrap (23.08.2021)

• Stocks in Asia are trading higher at the beginning of a new week. Nikkei gains 1.8%, Kospi adds 1.5% and S&P/ASX 200 traded 0.30% higher. Indices from China traded over 1% higher

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

• Fed symposium at Jackson Hole this week will be a fully virtual event instead of an in-person event

• Lockdown in New Zealand has been extended until Friday midnight as coronavirus case count continues to rise in the country. Prime MInister Adern also decided to suspend the parliament

• According to the Telegraph, UK Prime Minister Boris Johnson will ask US President Biden to delay withdrawal of US troops from Afghanistan

• PayPal will allow clients in the United Kingdom to buy, hold and sell cryptocurrencies

• Japanese manufacturing PMI index dropped from 53.0 pts to 52.4 pts in August (exp. 52.1 pts)

• Bitcoin tests $50,000 area after an overnight rally

• Gains can be spotted across commodity markets. Precious metals trade higher with platinum and palladium rallying around 2% each. Brent and WTI also gain 2% each while most industrial metals trade over 1% higher

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

Indices trade higher at the beginning of a new week. Announcement that Jackson Hole meeting will be held virtual has made investors believe that Fed will not use the event to announce anything major - like for example QE taper. US30 broke above the resistance zone at 35,150 pts and is approaching the next resistance area at 35,300 pts. Source: xStation5