• US indices had a solid session yesterday with all major Wall Street benchmarks booking significant gains. S&P 500 gained 1.41%, Dow Jones moved 0.98% higher and Nasdaq jumped 1.67%. Russell 2000 gained 1.52%
  • Stocks in Asia traded mostly higher during the final trading session of the week. Nikkei gained 0.5%, S&P/ASX 200 moved 1% higher and Kospi traded flat. Chinese indices gained but scale of those gains did not exceed 0.2%
  • DAX futures point to a slightly higher opening of the European cash session today
  • Fed Bullard said that he sees rates increasing to 3.75-4.00% this year. Fed Harker said would like to see rates go beyond 3.4%, what would allow the Fed to relax a bit. Fed Bostic said that should the data remain strong, the case for another 75 basis point rate hike will be there
  • Reuters reported that ECB may soon begin talks on ending APP reinvestments. However, report note that decision on the matter is not urgent and unlikely to be taken at the next meeting
  • RBNZ Governor Orr said that he sees at least two more rate hikes in this cycle. Moreover, he said that RBNZ expect the country will experience technical recession
  • Josep Borrell, EU representative for foreign affairs and security policy, said that the US answer to Iran is a reasonable counterproposal. Contrary to earlier media reports, US did not outright reject Iranian proposal, nor did Iran reject US counterproposal
  • The United States canceled 26 flights from the US to China in September, operated by Chinese carriers. The move is a retaliation for China canceling some flights operated by US carriers due to Covid concerns
  • Cryptocurrencies are trading lower – Bitcoin drops 0.7% while Ethereum plunges 2%. EOS and Kyber trade over 5% lower
  • Oil is trading slightly higher this morning with WTI trading a touch above $93 per barrel
    • Precious metals pull back slightly amid USD strengthening. Gold drops 0.2% at press time
    • USD and CHF are the best performing major currencies while NZD and AUD lag the most

    Somewhat more optimistic comments on the progress in Iranian nuclear talks pushed oil prices lower yesterday. WTI (OIL.WTI) failed to break above the resistance zone marked with 23.6% retracement of a recent downward impulse as well as 200-session moving average (purple line).

  • US indices finished yesterday’s trading slightly higher, snapping a 3-day long downward streak. S&P 500 gained 0.29%, Dow Jones moved 0.18% higher and Nasdaq gained 0.41%. Small cap Russell 2000 jumped 0.84%
  • Stocks in Asia traded higher on Thursday. Nikkei and S&P/ASX 200 gained 0.7% each, Kospi moved around 1% higher and indices from China traded up to 0.5% higher
  • DAX futures point to a slightly higher opening of the European cash session
  • Morning stock market session in Hong Kong was canceled today due to storm
  • Russia is reportedly offering discounts of up to 30% on long-term oil contracts to Asian buyers in an attempt to offset looming plunge in oil exports to Europe
  • United States has rejected additional conditions set by Iran for return to nuclear deal
  • Bank of Korea delivered a 25 basis point rate hike – in-line with market expectations. BoK lowered 2022 GDP growth outlook from 2.7% to 2.6% and boost inflation outlook from 4.5% to 5.2%
  • New Zealand retail sales dropped 2.3% QoQ in Q2 2022 (exp. +1.7% QoQ)
  • According to data from UK Society of Motor Manufacturers and Traders, vehicle sales in the United Kingdom increased 8.6% YoY in July, marking a third month of increases in a row
  • Cryptocurrencies are trading mixed today – Bitcoin drops 0.4% while Ethereum trades 0.2% higher. Kyber plunges over 4%
  • Oil is trading a touch lower but Brent stays above $101 per barrel mark
  • Precious metals benefit from USD weakness – gold gains 0.4% while silver and platinum traded 0.7% and 0.5% higher, respectively
  • AUD and NZD are the best performing major currencies while USD and CAD lag the most
  • In spite of a disastrous New Zealand retail sales reading for Q2 2022, NZDUSD is trading higher today. The pair benefits from USD weakness and attempts to break above a key short-term resistance in the 0.6220 area, marked with previous price reactions and upper limit of local market geometry.
  • US indices finished yesterday’s trading lower, although scale of declines was nowhere near as big as on Monday. S&P 500 dropped 0.22%, Dow Jones moved 0.47% lower and Nasdaq finished little changed (-0.03%). Russell 2000 was outperformer with a 0.18% gain
  • Indices from Asia-Pacific region are trading mixed today. Nikkei and indices from China drop while S&P/ASX 200 and Kospi gain
  • DAX futures point to a lower opening of the European cash session today
  • Fed’s Kashkari said that rates should remain high as long as inflation remains high and Fed will only relax on rate hikes when there is evidence of inflation approaching 2%
  • Iran made a new proposal of returning to a nuclear deal. Proposal is said to be well received by EU and other major players but we are yet to hear from the United States. US is expected to respond to Iranian proposal today
  • US President Biden is expected to make an announcement of student debt relief today
  • According to Nikkei report, Japanese Prime Minister Kishida ordered development of new nuclear power plants amid spiking energy costs. Resuming operations of up to 17 reactors that were already shut was also agreed on and is expected to begin next summer
  • API report on oil inventories pointed to a massive 5.63 million barrel draw (exp. -1.1 mb)
  • Cryptocurrencies are trading mostly lower today but scale of moves is rather small. Bitcoin trades 0.3% lower while Ethereum drops 0.5%
  • Oil is trading a touch lower with Brent dropping below $100 per barrel mark
  • Precious metals post small gains – silver and platinum gain around 0.11% while gold traders flat
  • USD and JPY are the best performing major currencies while AUD and NZD lag the most
  • Comments from Fed Kashkari helped US dollar which is one of the best performing G10 currencies this morning.

US indices finished yesterday’s trading lower following a poor performance of European equities. S&P 500 dropped 2.14%, Dow Jones moved 1.91% lower while Nasdaq declined 2.55%. Russell 2000 dropped 2.13%

Asian equities find no relief and deepen yesterday’s declines today. Nikkei and Kospi trade 1.2% lower, S&P/ASX 200 drops 1% while indices from China are trading 0.1-0.9% lower

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

EURUSD dropped below parity levels yesterday and reached the lowest level in 20 years. The main currency pair is trading around 0.9920 at press time

Chinese state-controlled media hinted that People’s Bank of China may decide to cut reserve requirement rate this year to help lower LPR further

Citi expects UK inflation to jump above 18% in 2023 on the back of higher energy prices

Japanese manufacturing PMI for August dropped from 52.1 to 51.0 – the lowest reading in 19 months. Services PMI dropped from 50.3 to 49.2

Australian manufacturing PMI for August dropped from 55.7 to 54.5. Services PMI dropped from 50.9 to 49.6

Cryptocurrencies are trading mixed – Bitcoin drops 0.4% while Ethereum gains 0.3%. EOS drops almost 5%

Energy commodities are trading higher today. Oil extends gains follow a reversal on this market yesterday in the afternoon

Precious metals trade mixed – platinum and silver drop while gold and palladium gain

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

Oil has been very volatile yesterday amid mixed news (orange circle). On one hand, Russia said that the deal with Iran is getting closer while on the other hand, Saudi Arabia warned that OPEC+ may have to reduce output. Nevertheless, it is not expected that any immediate action will follow either of those comments.

  • Stocks in Asia are trading mixed at the start of a new week – Chinese equities gain following PBoC rate cut while indices from other parts of Asia-Pacific drop. South Korean Kospi is one of top laggards with 1.2% decline at press time
  • US and European index futures are trading slightly lower
  • People’s Bank of China cut 1-year Loan Prime Rate from 3.70 to 3.65% (exp. 3.60%) while 5-year Loan Prime Rate was cut from 4.45 to 4.30% (exp. 4.35%)
  • Russia will shut down the only remaining gas turbine in the Nord Stream I pipeline for 3-day maintenance, starting on August 31, 2022. After maintenance flows will be restored to around 20% capacity (current levels)
  • German economy minister Habeck said that Germany faces a very difficult winter if gas supplies are tightened further but there is a good chance that drastic energy measures will not needed
  • RBNZ Deputy Governor Hawkesby said that cash rate may increase to 4.00-4.25% until the Bank has a more balanced view. He also said that rate hikes of 25 and 75 basis points were also considered before Bank decided to deliver 50 bp rate hike at the latest meeting
  • South Korean exports increased 3.9% YoY in the first 20 days of August. Imports were 22.1% YoY higher. Semiconductor exports were 7.5% YoY lower while exports to China dropped 11.2% YoY
  • Cryptocurrencies are pulling back slightly although scale of moves is relatively small. Bitcoin drops 0.6% while Ethereum trades 1.3% lower. Dogecoin drops 2.5%
  • Oil drops slightly this morning. Brent drops 0.6% while WTI trades 0.7% lower
  • Precious metals trade little changed – gold and platinum trades 0.2% lower, silver drops 0.1% while palladium gains 0.3%
  • AUD and NZD are the best performing major currencies while JPY and CHF lag the most
  • Chinese index CHNComp gains following PBoC rate cut and is trying to bounce off the 6,650 pts support zone. However, the long-term outlook is more bearish with the index trading in a wide downward channel.
  • US indices finished yesterday’s session higher. S&P 500 jumped 0.23%, Dow Jones moved 0.06% higher while Nasdaq surged 0.21%. Russell 2000 added 0.68%
  • Indices from Asia-Pacific traded mostly lower today. S & P / ASX 200 fell 0.10%,  Nikkei lost 0.15% while Kospi dropped 0.50%. Indices from China struggle to find common direction.
  • DAX futures point to a slightly lower opening of the European cash session
  •  FED Bullard said he is considering support for a third straight 75-bp hike in September and said he is not ready to say the economy has seen the worst of the inflation surge.
  • Bed Bath & Beyond (BBBY.US) tumbled 45% in after-hours trading as activist investor Ryan Cohen revealed that he had exited his entire position in the company.
  • Japan’s headline inflation rose 2.6% YoY in July from 2.4% in June, accelerating at the fastest pace since April 2014.
  • UK consumer confidence index fell to a new all-time low at -44.0
  • New Zealand trade data for July shows the annual deficit has hit a new record high
  • RBNZ Governor Orr wants the cash rate (OCR) to be clearly above its neutral level
  • UBS expects that Brent crude oil price will reach $125.00 per barrel by the end of this year
  • Germany’s Finance Ministry says economic outlook of the biggest EU economy is bleak
  • Cryptocurrencies retreated during Asian session. Bitcoin fell over 3.0% and Ethereum plunged more than 2.8%
  • Oil is trading slightly lower. WTI trades near $ 89.60 per barrel, while Brent is approaching $ 96.20 mark
  • Downbeat moods prevail on the precious metals market. Gold tumbled 0.30%, while silver fell nearly 1.0% amid stronger dollar
  • USD and AUD are the best performing major currencies while JPY and NZD lag the most
  • USDCNH – PBOC moved to weaken the yuan this week and the pair is currently testing major resistance at 6.83, which is marked with previous price reactions and 38.2% Fibonacci retracement of the upward wave launched in April 2018.
  • US indices finished yesterday’s session lower despite dovish FOMC minutes. S&P 500 fell 0.72%, Dow Jones moved 0.50% lower while Nasdaq lost 1.25%. Russell 2000 dropped 1.64%
  • Also indices from Asia-Pacific traded mostly lower today. S & P / ASX 200 fell 0.23% while Nikkei lost 0.85%. Indices from China traded lower. Kospi dropped 0.42%
  • DAX futures point to a slightly lower opening of the European cash session
  • Odds of a 50 bps rate hike in the US next month move up after the FOMC meeting minutes
  • Water level at a key waypoint on the Rhine River is forecast to rise above a critical level this weekend, according to Bloomberg
  • Goldman Sachs and Nomura cut their forecasts for China’s GDP, to 3% from 3.3% and to 2.8% from 3.3%, each, citing weak July economic data and near-term energy issues.
  • US and Taiwan will commence formal negotiation on trade agreement
  • Russia has started to gradually increase oil production amid easing sanctions-related curbs and increased purchases from Asian buyers, prompting Moscow to raise its forecast for output and exports until the end of 2025, Reuters reported.
  • Russia’s earnings from energy exports this year up 38% on 2021
  • OPEC’s secretary Al Ghais forecasts global oil demand rising 3 million bpd by year end
  • Australia employment change in July -40.9K (expected +25K), unemployment rate 3.4% (expected 3.5%)
  • Cryptocurrencies are trading higher today. Bitcoin rose over 1.3% and Ethereum jumped more than 1.0%
  • Oil is trading slightly higher. WTI trades near $ 87.90 per barrel while Brent is approaching $ 93.80 mark
  • Mixed moods prevail on the precious metals market. Gold trades 0.25% higher while silver fell 0.40% amid stronger dollar
  • JPY and CHF are the best performing major currencies while EUR and GBP lag the mostGold pulled back sharply during yesterday’s session and is currently testing major support at $1760.00
  • US indices finished yesterday’s session mixed. S&P 500 rose 0.19%, Dow Jones moved 0.71% higher while Nasdaq fell 0.19%. Russell 2000 dropped 0.04%
  • Indices from Asia-Pacific traded mostly higher today. S&P/ASX 200 added 0.20% while Nikkei rose 1.15%. Indices from China traded higher. Kospi underperformed and fell 0.70%
  • DAX futures point to a slightly higher opening of the European cash session
  • Iran’s parliament will hold a closed session today to discuss nuclear deal, however Goldman Sachs does not expect a major breakthrough
  • RBNZ raised interest rate by 50bp as expected and lifted its projection for the peak in rates to 4.1% in Q2 of 2023 from 3.9% in previous forecasts
  • AUD weakened after the Australian wage price index increased by 0.7% for the third consecutive quarter in Q2, below consensus of a 0.8% rise.
  • BoC Gov Macklem says inflation may have topped out
  • API report showed that US oil inventories fell more than expected
  • Musk clarified that he is not buying Manchester Utd or any other sports team
  • Cryptocurrencies are trading higher today. Bitcoin rose over 1.0% and Ethereum jumped more than 2.0%
  • Oil is trading slightly higher. WTI trades near $86.80 per barrel while Brent is approaching $93.00 mark
  • Upbeat moods prevail on the precious metals market. Gold trades 0.40% higher while silver gains 0.80%
  • NZD and GBP are the best performing major currencies while USD and AUD lag the most

AUDUSD failed to break above 200 SMA (red line) and the pair pulled back below support at 0.7060, which coincides with 38.6% Fibonacci retracement of the upward wave launched in March 2020. Currently the pair is testing an earlier broken upper limit of the wedge formation. Should break lower occur, downward move may accelerate towards recent lows at 0.6717.

US indices finished yesterday’s session higher. S&P 500 jumped 0.40%, Dow Jones moved 0.45% higher while Nasdaq surged 0.62%. Russell 2000 added 0.19%
Indices from Asia-Pacific traded mostly higher today. S&P/ASX 200 rose 0.48% while Kospi jumped 0.22%. Indices from China traded higher. Nikkei fell 0.05%

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

PBOC considering buying bonds and loans of troubled developers and indicates more policy stimulus needed which lead to weakening of yuan

Standard Chartered lowered their China GDP forecasts and expect another 10bp rate cut

RBA minutes showed that the board expects to take further steps in the process of normalizing monetary conditions over the months ahead, but it is not on a pre-set path.

Iran has responded to the EU’s draft nuclear deal, and anticipates a response from the other side within the next two days, according to ISNA

Cryptocurrencies are trading lower today. Bitcoin fell 0.8% and Ethereum dropped over 2.0%

Oil is trading slightly higher. WTI trades near $94.10 per barrel while Brent is testing $88.70 mark

Mixed moods prevail on the precious metals market. Gold trades 0.30% higher while silver dropped 0.50%

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

US500 managed to break above the major resistance zone around 4190 pts last week and is currently testing 200 SMA (red line). Nevertheless as long as the index sits below the downward trendline sentiment remains bearish

  • Indices from Asia-Pacific traded mostly higher today. Nikkei rose 1.13%, S&P/ASX 200 added 0.45% while traders from South Korea were off for holiday. Indices from China struggle to find common direction.
  • DAX futures point to a lower opening of the European cash session
  • China July Industrial Production 3.8% y/y (vs. expected 4.6%)
  • PBOClowered 1-Year MLF loans rate to 2.75% from 2.85%,
  • Japan Q2 GDP 0.5% q/q (expected 0.7%)
  • A delegation from the US including members of Congress has arrived in Taiwan for a visit
  • Saudi Aramco posted upbeat quarterly results and expects the recovery in oil demand to continue for the rest of the decade
  • BoE Governor Bailey is ‘open to review’ of Bank of England’s mandate
  • BlackRock’s new private trust offers US institutions direct exposure to bitcoin
  • Mixed moods prevail on the cryptocurrency market. Bitcoin bounced off the 25,000 level and Ethereum puled back from $2000.00 resistance
  • Oil is trading over 1.0% lower. WTI trades near $91.00 per barrel while Brent is testing $97.0 mark
  • Downbeat moods prevail on precious metals market. Gold trades 0.70% lower while silver fell 1.0%
  • JPY and USD are the best performing major currencies while NZD and AUD lag the mostAUDUSD strengthened at the end of last week, however buyers failed to break above 200 SMA (red line) and today we can observe a pullback, towards support at 0.7060, which coincides with 38.6% Fibonacci retracement of the upward wave launched in March 2020 and upper limit of the wedge formation.