Morning wrap (27.08.2021)

• US indices finished yesterday's trading lower. S&P 500 dropped 0.58%, Dow Jones declined 0.54% and Nasdaq moved 0.64% lower. Russell 2000 plunged 1.13%

• Stocks traded mixed during the Asian session. Equities from Australia and Japan moved lower while stocks from China and South Korea gained

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

• At least 70 civilians and 13 US soldiers died in bombings in Kabul yesterday. US President Joe Biden said that the United States will track down those responsible and make them pay. Local ISIS unit took responsibility for the attack

• Biden Administration is most likely to reappoint Powell as Fed Chair for the second term

• Fed Kaplan said that 2022 would be a good time for Fed to start lifting rates

• US energy producers are evacuating non-essential employees from the US Gulf oil platforms. Tropical storm is expected to hit the northern Gulf coast over the weekend

• Australian retail sales dropped 2.7% MoM in July (exp. -2.3% MoM)

• TSMC, world's largest semiconductor manufacturer, will increase prices of its most advanced chips by around 10%. Less advanced chip will become around 20% more expensive

• Precious metals and oil gain while industrial metals and agricultural goods trade lower

• Bitcoin trades near $47,000 mark

• EUR and AUD are the best performing major currencies while NZD and USD lag the most

Jackson Hole is one of the key events to watch for the US dollar. Investors will look for hints on future monetary policy when Powell delivers his speech at 3:00 pm BST. USDJPY has recently bounced off the support at 109.30 and launched an upward move. The near-term resistance to watch for the pair can be found at 110.65. Source: xStation5