Morning wrap (12.06.2023)

• Indices from Asia-Pacific traded mostly higher today. Nikkei gained 0.6%, Nifty 50 added 0.2% while Kospi traded 0.5% lower. Indices from China traded up to 0.5% higher

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

• US index futures trade little changed compared to Friday's cash session close

• Chinese stocks were supported by news of some commercial banks deciding to cut rates on deposits, joining state-owned banks which cut last week. This is seen as a strong signal that People's Bank of China will cut rates at next meeting

• Bank of America sees chance of Fed pushing rates to 6% over the next 12 months

• Goldman Sachs cut its December Brent price forecast from $95 to $86 per barrel. Bank reasons decision with increased output from Russia, Iran and Venezuela as well as increased recession fears

• UBS said it has completed takeover of Credit Suisse

• New Zealand retail sales dropped 1.7% MoM in May (exp. +0.3% MoM)

• Japanese PPI inflation dropped from 5.8 to 5.1% YoY in May (exp. 5.6% YoY)

• Cryptocurrencies are trading lower today - Bitcoin drops 0.9%, Ethereum trades 1.3% lower and Dogecoin slumps 1.5%

• Energy commodities trade mixed - Oil drops 1.4% while US natural gas prices gain 0.4%

• Precious metals pull back - silver drops 0.3%, platinum declines 0.4%, palladium dips 0.2% and  gold trades flat

• AUD and EUR are the best performing major currencies while CHF and CAD lag the most

Chinese indices traded slightly higher today after more Chinese banks cut rates, in a sign that PBoC may do the same. While majority of Chinese indices still trade higher on the day, CHNComp has erased all of the gains already and is trying to break back below the 200-session moving average (purple line). Source: xStation5