Morning wrap (29.12.2022)

• US indices finished yesterday's trading significantly lower with all major Wall Street indices losing over 1%. S&P 500 dropped 1.20%, Dow Jones fell 1.10% and Nasdaq moved 1.35% lower. Small-cap Russell 2000 plunged 1.57%

• Indices from Asia-Pacific traded mostly lower. Nikkei and S&P/ASX 200 fell around 1.10% and 0.90% respectively, Kospi dropped 1.6%. Chinese indices traded mostly lower amid worries over the prospects economic growth following new covid infections

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

• The US announced that it will require air passengers from China to show a negative covid test.

• Italy will take a similar approach after almost half of passengers on two flights from China to Milan tested positive. Italy urges other EU countries to act in the same manner.

• The BOJ conducted two additional rounds of unscheduled bond-purchase operations Thursday

• South Korean industrial output rose 0.4% MoM in November and snapped 4 month losing streak

• API data showed a second consecutive draw in US oil inventories.

• Major cryptocurrencies trade higher today despite negative sentiment. Bitcoin gains 0.5%, while Ethereum rose 0.65%

• Energy commodities trade lower - Brent and WTI fell around 0.60% while US natural gas prices dropped 1.0%

• Precious metals trade higher - silver jumped 1.0%, gold gains 0.3% 

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

US500 fell sharply yesterday amid renewed covid fears and is approaching major support at 3800 pts. Should break lower occur, downward move may deepen towards next support at 3600 pts or even October lows at 3500 pts. Source: xStation5