• 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.
  • US indices finished yesterday’s session mixed. S&P 500 fell 0.07%, Dow Jones rose 0.08% while Nasdaq lost 0.58%. Russell 2000 added 0.31%
  • Similar moods prevailed during the Asia session. Nikkei surged 2.38%, S&P/ASX 200 fell 0.68% while Kospi rose 0.15%. Indices from China struggle to find common direction.
  • DAX futures point to a higher opening of the European cash session
  • Fed’s Daly said that base case is 50 bp rate hike in September, however central bank is open to 75 bp hike
  • IEA raised its outlook for 2022 oil demand by 380,000 bpd
  • Goldman Sachs expects that oil price will reach $130.00 level by year end
  • AUDUSD pair is “likely to falter back to the 0.68-0.69 area” according to Westpac
  • Cryptocurrencies are trading slightly lower today. Bitcoin fell 1.0% and Ethereum fell 0.8%
  • Oil is trading 0.60% lower. WTI fell below $94.00 per barrel while Brent is testing $99.00 mark
  • Upbeat moods prevail on the precious metals market. Gold trades 0.17% higher and silver jumped 0.80%
  • NZD and AUD are the best performing major currencies while JPY and CHF lag the mostJAP225 – Japanese index jumped over 1.5% in post-holiday trade on Friday and is currently testing key resistance at 28400 pt,s which is marked with previous price reactions and upper limit of the ascending channel.
  • US indices finished yesterday’s session higher. S&P 500 jumped 2.13%, Dow Jones moved 1.63% higher while Nasdaq surged 2.89%. Russell 2000 added 2.95%
  • Indices from Asia-Pacific traded mostly higher today. S&P/ASX 200 rose 0.94% while Kospi jumped 1.28%. Indices from China traded higher. Traders from Japan were off for holiday
  • DAX futures point to a higher opening of the European cash session
  • President Biden has set aside the option of scrapping some China tariffs for now
  • Goldman Sachs is  not expecting core inflation to come down much from current levels.
  • Microsoft is lowering number of contractors and stops hiring new employees
  • Pelosi said that the Inflation Reduction Act should be passed on Friday
  • Fed’s Daly said that despite upbeat CPI report, central bank is not near done yet in battle against inflation
  • Australian August consumer inflation expectations fell to 5.9% from 6.3% in July
  • Chinese city of Yiwu imposes an entire city lockdown for three days starting from today
  • Cryptocurrencies are trading higher today. Bitcoin rose 3.4% and Ethereum jumped nearly 2.5%
  • Oil is trading slightly higher. WTI trades near $91.50 per barrel while Brent is testing $97.00 mark
  • Downbeat moods prevail on the precious metals market. Gold trades 0.40% lower and silver dropped 0.70%
  • USD and CAD are the best performing major currencies while JPY and GBP lag the mosUS500 managed to break above the major resistance zone around 4190 pts. If current sentiment prevails, the next target for buyers is the downward trendline which coincides with the 200 SMA