Morning wrap (28.12.2022)

• US indices finished yesterday's trading in mixed moods. S&P 500 fell 0.41%, Dow Jones added 0.11% and Nasdaq moved 1.38% lower. 

• Indices from Asia-Pacific traded mostly lower. Nikkei dropped 0.50% and S&P/ASX 200 fell 0.3%, Kospi lost 2.25%. Chinese indices traded mostly lower

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

• PBOC injected a total CNY 202 billion of reverse repos into the banking system on Wednesday, while keeping the rate unchanged at 2% and 2.15%, respectively

• China will start issuing new passports and Hong Kong travel permits to mainland residents in early January, and it will also resume express checkpoints on the borders with Hong Kong and Macau 

• Putin imposed an exports ban of Russian crude oil and refined products to foreign buyers that adopt the G7 price cap

• Industrial production in Japan fell slightly by 0.1% MoM in November  from a 3.2% decline in October, above market estimates o a 0.3% drop

• BOJ’s summary of opinions support easy policy outlook

• Takehiko Nakao, which is considered as BOJ Governor Kuroda successor, said widening of JGB YCC band will make policy change easier

• Taiwan will extend the period of mandatory military service for all eligible men from four months to a year

• Major cryptocurrencies trade lower today. Bitcoin fell 0.50% while Ethereum  plunged 1.9% below psychological support at $1200.00 

• Energy commodities trade lower - Brent and WTI fell 1.0% and 0.60% respectively, while US natural dropped 4.0%

• Precious metals also pulled back from recent highs - silver drops 0.5%, gold trades 0.25% lower 

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

USDCAD pair fell sharply on Tuesday, however buyers managed to halt declines around key support at 1.3510, which coincides with 200 SMA (red line). As long as price sits above, another upward impulse towards local resistance at 1.3600 may be launched. Source: xStation5