May 3, 2022
Good Morning Traders
- Holidays in China, Japan, India, Turkey and Poland.
- Stocks in Hong Kong fell sharply after one day off. Stocks in the United States rebounded yesterday. The Nasdaq was up as much as 1.63%, the S&P 500 was up 0.57%, and the DJIA gained 0.26%. Today, Wall Street index futures are making gains before the opening in Europe.
- Global equity markets are behaving mixed in anticipation of U.S. interest rate hikes on Wednesday.
- U.S. 10-year bond yields broke through 3%. Real yields moved back above 0.
- RBA raises interest rates harder than expected. Interest rates were raised by 25 basis points to 0.35%. The expectation was to raise from 0.1% to 0.25%.
- RBA intends to do everything to bring inflation back to target.
- RBA intends to raise interest rates further in the coming months.
- Moody’s warns of a possible slump in the Asian stock market. It points to problems with rising inflation, supply chain issues and uncertainty over Covid.
- China announced last week that it intends to support Chinese online companies, easing concerns about tough regulation in the sector. At the same time, there were reports that the Chinese government wants to get a 1% share in China’s largest technology companies and have a direct influence on corporate decisions.
- Oil gained yesterday at the of the day, making up most of its losses. Today it is trading flat. After the session on Wall Street, the API will release a report on oil inventories.
- Gold continues its declines, testing $1860 per ounce in the morning.
AUDUSD has rebounded significantly but limits its upside move by a half ahead of Europe’s start. Source: xStation5
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