Morning wrap (20.07.2022)

• US indices rallied yesterday with all major Wall Street indices gaining over 2%. S&P 500 added 2.76%, Dow Jones moved 2.43% higher and Nasdaq gained 3.11%. Russell 2000 surged 3.50%

• Big gains could also be spotted during the Asian session today. Nikkei jumped 2.6%, S&P/ASX 200 added 1.6% and Kospi traded 0.6% higher. Indices from China gained as well

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

• The People's Bank of China left interest rates unchanged at a meeting today, in-line with market expectations. 1-year loan prime rate was left unchanged at 3.70% while 5-year rate remained at 4.45%

• Putin warned that should return of Nord Stream turbine from maintenance get delayed, gas flows to Europe will drop further

• Goldman Sachs expects Russia to resume gas flows via Nord Stream 1 pipeline but only at 40% capacity

• RBA Governor Lowe said that inflation in Australia is heading towards 6-7% and interest rates will eventually need to be increased to 2.5% neutral level (1.35% currently)

• Netflix rallied 8% in the after-hours trading following the release of Q2 2022 earnings report. Company reported EPS at $3.20 (exp. $2.94) and revenue at $7.97 billion (exp. $8.035 billion). While Netflix lost 970 thousand subscribers during the quarter, market expected this drop to be twice as big at 2 million subscribers

• API report pointed to a 1.86 million barrel build in US oil inventories (exp. +0.2 mb)

• Cryptocurrencies trade mixed on Wednesday. Bitcoin drops 0.7% and trades near $23,500

• Energy commodities pull back with Brent and WTI trading around 0.8% lower each. Precious metal gain slightly on USD weakness

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

Nasdaq-100 (US100) rallied yesterday and managed to break above the 12,175-12,250 pts resistance zone that has been limiting upward moves for the past month. The next resistance to watch now can be found in the 12,530 pts area. Source: xStation5