Morning wrap (14.12.2021)

• US indices finished yesterday's trading lower as investors prepare for potential policy tightening from the Fed on Wednesday. S&P 500 dropped 0.91%, Dow Jones moved 0.89% lower and Nasdaq plunged 1.39%

• Stocks in Asia also moved lower. Nikkei dropped 0.7%, Kospi moved 0.5% lower and S&P/ASX 200 finished flat. Chinese indices traded lower with tech shares being top underperformers

• Chinese tech companies traded under pressure after country's watchdog imposed a fine on one of the social media companies for failing to barr users from posting prohibited content

• DAX futures are pointing to a flat opening of today's European session

• Russia said that it may have deploy intermediate range nuclear missile in Europe if NATO brings such weapons to Ukraine

• California decided to reimpose an indoor mask mandate, starting from Wednesday

• Toyota announced that it will extend some production line halts amid component shortages. Shortages result from lower production in Southeast Asia that was disrupted by local lockdowns

• Japanese industrial production increased 1.8% MoM in October

• Cryptocurrencies continue to slide after a heavy sell-off yesterday. Bitcoin is trading below $47,000 handle

• Precious metals trade mixed - gold and platinum gain, palladium trade flat and silver drops

• Oil trades mixed with WTI dropping and Brent gaining. Industrial metals advance

• CAD and USD are the best performing major currencies while AUD and JPY lag the most

Cryptocurrencies continue to slide as traders look away from risk assets. Bitcoin dropped over 30% off its recent highs and dropped below the support zone at $47,000. A 200-session moving average (purple line) is tested at press time. Source: xStation5