DAILY ANALYSIS 08 september 2022

US indices rallied yesterday amid a drop in oil prices and a drop in yields. S&P 500 gained 1.40%, Dow Jones moved 1.83% higher and Nasdaq jumped 2.14%. Russell 2000 added 2.21%

Indices from Asia-Pacific also rallied – Nikkei jumped 2.2%, S&P./ASX 200 added 1.5% and Kospi moved 0,4% higher. Indices from China traded mixed

Futures markets point to a higher opening of the European cash session. DAX futures signal an opening back above 13,000 pts mark

According to media reports, UK Prime Minister Truss plans to remove the 2019 ban on fracking in order to boost domestic energy supply. Reuters reports that UK may also issue over 100 new North Sea oil and gas exploration licenses

RBA Governor Lowe still sees need for more rate hikes but at a slower pace than previously

Australian exports dropped 10% MoM in July while imports were 5% MoM higher. Iron ore exports were 15% MoM lower while coal exports dropped 17% MoM. Trade balance came in at A$8.73 billion (exp. A$14.2 billion)

Japanese GDP growth for Q2 2022 was revised higher from 0.5% QoQ to 0.9% QoQ

API report pointed to a 3.64 million barrel build in US oil inventories (exp. -0.8 mb)

Cryptocurrencies are trading slightly lower this morning. Bitcoin drops 0.4% after recovering above $19,000 mark yesterday

Oil is trading higher this morning, following recent drops. Brent and WTI trade around 1.4% higher at press time

Precious metals trade mixed – gold and platinum drop 0.1-0.2% while silver gains 0.3%

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

US indices managed to snap a losing streak and finished yesterday’s trading with big gains. Russell 2000 (US2000) halted pullback at 61.8% retracement of recent upward correction and jumped towards a near-term resistance marked with 50% retracement (1,835 pts area).