DAILY ANALYSIS 29september 2022

• US indices recovered from early-session losses yesterday and finished trading with significant gains. S&P 500 jumped 1.97%, Dow Jones moved 1.88% higher and Nasdaq added 2.05%. Russell 2000 jumped 3.17%
• Recovery in risk moods was accompanied with a drop in US yields and weakening of the US dollar. 10-year US yields pulled back from around 4% to below 3.8%
• Moods were additionally supported by Fed’s Bostic comments. While he said that he will support another 75 bp rate hike at the next FOMC meeting, he also said that first signs of easing price pressures are emerging
• Indices from Asia-Pacific followed the US lead and also traded higher. Nikkei gained 0.8%, S&P/ASX 200 moved 1.8% higher and Kospi jumped 0.9%. Indices from China traded 0.2-0.5% higher
• DAX futures point to a higher opening of the European cash session
• Fed’s Evans said that policy rates at 4.50-4.75% at the end of 2022 or end of Q1 2023 would be a good place to get

• UK Chief Secretary to the Treasury Philp said that course on tax cut plan will not be changed
• RBC sees a chance of 500-1000k bpd output cut at next OPEC+ meeting (October 5, 2022)
• BlackRock said it is avoiding most stocks as markets haven’t yet fully priced-in an upcoming recession
• Australian CPI inflation decelerated from 7.0% to 6.8% YoY in August
• Major cryptocurrencies are trading slightly lower today. Bitcoin drops 0.7% while Ethereum trades 0.8% lower
• Oil and precious metals are trading lower today as USD managed to regain some ground overnight. Brent and WTI drop around 0.4% while gold trades 1% down
• USD and JPY are the best performing major currencies while GBP and NZD are top laggards

Russell 2000 (US2000) bounced off the 1,650 pts support zone and launched a strong upward move. Index jumped over 3% yesterday amid broad improvement in risk moods.