Morning wrap (05.10.2022)

• US indices had another stellar session in a row. S&P 500 gained 3.06%, Dow Jones jumped 2.80% and Nasdaq rallied 3.34%. Russell 2000 gained 3.91%

• Indices from Asia-Pacific traded higher as well. Nikkei gained 0.6%, S&P/ASX 200 traded 1.7% higher while Kospi added 0.4%

• DAX futures point to a more or less flat opening of the European cash session today

• Reuters reported that US is lobbying OPEC+ countries not to cut output. Meanwhile, market chatter started to hint at possibility of a 2 million barrel OPEC+ output cut

• Russian ambassador to the United States that continued military support for Ukraine increases risk of direct clash between Russia and the United States

• Reserve Bank of New Zealand hiked official cash rate by 50 basis points, to 3.50%. Decision was in-line with market expectations but Bank said that 75 bp move was also considered. According to statement, RBNZ members see the need to further tighten monetary conditions in order to get inflation under control.

• API report signaled a 1.77 million barrel draw in US oil inventories (exp. +1.9 mb)

• Cryptocurrencies are trading mostly lower but scale of moves is small. Bitcoin drops 0.5%, Ethereum trades 0.4% lower and Ripple gains 1%

• Energy commodities are trading little changed with Brent trading flat near $91.70 per barrel

• Precious metals are pulling back. Gold drops 0.3% while silver trades over 1% lower

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

NZDUSD jumped after RBNZ said that it was considering a 75 bp rate hike at a meeting today. However, the move was erased already and the pair trades back near pre-announcement levels after it failed to break above the 0.5800 resistance zone. Source: xStation5