Morning wrap (25.03.2022)

• US indices finished yesterday's trading higher. S&P 500 gained 1.43%, Dow Jones moved 1.02% higher and Nasdaq rallied 1.93%. Small-cap Russell 2000 gained 1.13%

• Moods were mixed during the Asian session. Nikkei gained 0.14%, S&P/ASX 200 added 0.26%, Kospi traded flat and indices from China dropped 0.7-2.4%

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

• The Russian land offensive in Ukraine remains stalled. Western intelligence says that Ukrainian forces began launching counter-attacks on logistical targets in Russian-occupied areas

• US President warned Russia that use of weapons of mass destruction in Ukraine will change the way NATO views its involvement

• United States and European Union reached a deal on long-term natural gas supply to Europe

• Spiegel reports that Germany plans to halve Russian oil imports by middle of 2022

• Australia and Japan expanded their sanction lists to include more individuals from Russia. Australian list now also includes Belarusian leader Lukashenko and his family members

• Fed members continue to call for rate hikes. Kashkari said yesterday that 7 more rate hikes may be needed this year. Commercial banks begin to point to a 50 bp rate hike will come in May

• Cryptocurrencies trade mixed. Bitcoin and Ethereum trade slightly higher

• Oil trades higher. Brent jumped above $115.50 while WTI trades above $112.00

• Precious metals gain with palladium being top performer. Gold trades flat

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

WTI (OIL.WTI) resumed upward movement after a brief pullback. WTI tested the lower limit of market geometry and 50% retracement of large correction from first half of March but bulls managed to prevent a break lower. The nearest resistance can be found at 61.8% retracement ($115.50 area). Source: xStation5