Morning wrap (15.11.2022)

• US indices finished yesterday's trading lower after a volatile session. S&P 500 dropped 0.89%, Dow Jones moved 0.63% lower and Nasdaq declined 1.12%. Russell 2000 traded 1.14% lower

• Indices from Asia-Pacific traded mixed today. Nikkei, Kospi and indices from China gained while S&P/ASX 200 and NIfty 50 dropped

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

• Fed's Barr said that while tightening had an adverse impact on US economic outlook, inflation still remains too high 

• ECB's Villeroy said that ECB will continue to raise rate but pace of the process may slow

• RBA said in minutes that both - quicker pace of rate hikes and pause to tightening cycle - remain an option

• According to UK Times, UK Prime Minister Sunak is preparing to increase living wage from 9.50 GBP per hour to 10.40 GBP per hour

• Chinese retail sales dropped 0.5% YoY in October (exp. +1.0% YoY). Industrial production was 5.0% YoY higher (exp. 5.1% YoY) while urban investments increased 5.8% YoY (exp. 5.9% YoY). China's statistic office said that economic recovery slowed on the back of Covid outbreaks

• Japanese economy contracted at an annualized pace of 1.2% in Q3 2022 (exp. +1.1%)

• Japanese industrial production dropped 1.7% MoM in September (exp. -1.6% MoM)

• Cryptocurrencies are holding more or less stable, with the majority of coins posting small gains. Bitcoin trades 2% higher while Ethereum gains 2.8%

• Oil is trading little changed while natural gas price rises

• Precious metals trade slightly higher - platinum gains 0.1%, silver adds 0.2% and gold trades flat

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

USDJPY extends recovery today, supported by weaker-than-expected GDP reading from Japan. The pair continues to recover after a failed attempt of breaking below the 61.8% retracement. Source: xStation5