Morning Wrap (07.09.2023)

• Indices from Asia-Pacific were traded lower. Japanese Nikkei225 traded 1.0% lower, Australian S&P/ASX 200 declined by 0.75%, Kospi traded 0.9% lower and indices from China traded  1.20-1.40% lower.

• Yesterday the Wall Street session was closed in red. US500 traded 0.70% lower and close to 4460 points, US100 was down by 0.9% at the level of 15300 points.

• European index futures point to a slightly lower opening of the cash session on the Old Continent today.

• Australia's trade balance inched down to 8,04 million, falling short of the forecast of 10,05 million and the previous figure of 11,32 million.

• New Zealand's manufacturing sales showed a positive trend, with a 2.9% increase, a notable improvement compared to the previous -2.1% decline.

• BoJ's Nakagawa noted signs of change in Japan's corporate pricing and wage-setting behavior, highlighting the potential for unexpected acceleration in inflation, while also acknowledging the possibility of cost pass-through moderating.

• The Japanese Leading Indicator Change recorded -1.2, indicating a decrease compared to the previous -0.2, although no forecast was available.

• Chinese Trade Balance in USD reported 68.36 billion, falling short of the forecast of 73.9 billion and the previous figure of 80.60 billion.

• Energy commodities traded lower, oil is down by 0.50% but the price still remains above $90 per barrel.

• Precious metals were mostly traded lower apart from gold, which is up by 0.10% to $1920 per ounce. Palladium is traded lower by 1.20%.

• The cryptocurrency market began the day with modest gains following declines yesterday. Bitcoin is currently trading 0.10% higher at around $25,800.

The dollar remains strong against most currencies. On EURUSD, we observe declines following yesterday's positive ISM readings, particularly in employment and prices. EURUSD broke the recent upward channel, breaking through the bottom and is currently heading towards the next support level at 1.0685.