Morning wrap (08.10.2021)

• US indices continued to recover from a recent correction yesterday. S&P 500 added 0.83%, Nasdaq moved 1.05% higher and Dow Jones gained 0.98%

• Stocks in Asia gained as well with Nikkei rallying over 1.5% and S&P/ASX 200 moving almost 0.9% higher. Kospi traded slightly lower. Stocks in China gained during the first trading session after a long weekend

• Risk-on moods are reasoned with positive developments in the US politics

• US Senate passed a short-term debt limit extension. Bill will now head to the House, where Democrats have a clear majority and are expected to pass it with ease on October 12, 2021

• DAX futures point to a lower opening of the European session

• China has approved increasing production at over 70 coal mines in order to ease shortage of commodity

• Governor of the Nigerian central bank said that its digital currency within days

• Chinese services PMI for September (Caixin/Markit) jumped from 46.7 to 53.4 (exp. 50)

• Japanese household spending dropped 3% YoY in August (exp. -1.4% YoY)

• Bitcoin pulled back towards recent local highs near $53,500

• Precious metals trade mixed - silver and palladium drop, platinum gains and gold trade flat

• Oil trades higher with both WTI and Brent gaining over 1% on the day

• EUR and USD are the best performing major currencies while JPY, AUD and CHF lag the most

USDJPY started to regain ground following a test of the 110.65 price zone that served as the upper limit of the ascending triangle pattern. Pair benefits from improvement in moods and is approaching recent local highs in the 112.00 area. Range of the upside breakout from the aforementioned triangle pattern points to a potential upward move towards 113.85. Source: xStation5