May 6, 2022
Good Morning Traders
- US indices slumped yesterday, erasing all of post-FOMC gains. S&P 500 dropped 3.56%, Dow Jones moved 3.12% lower and Nasdaq slumped 4.99%. Russell 2000 dropped 4.04%.
- Indices from Asia-Pacific followed Wall Street’s lead and also slumped. S&P/ASX 200 dropped 2.2%, Kospi dropped 1.1% and indices from China traded 2-4% lower.
- DAX futures point to a slightly lower opening of the European cash session.
- Josep Borrell said that agreement on next sanctions package on Russia has almost been reached by EU members.
- Hungary’s Orban said that his country will need 5-year exemption from Russian oil embargo.
- According to RBA Statement on Monetary Policy, interest rates in Australia will need to increase further as inflation is seen staying above goal until at least 2024.
- ECB’s Holzmann said that European Central Bank will discuss raising rates and may even decide to deliver a rate hike in June.
- Cryptocurrencies trade mostly higher. Ripple trades over 2% higher, Ethereum gains 0.5% and Bitcoin adds 0.1%.
- Precious metals pull back amid USD strengthening. Platinum is top laggard with a drop of 2.7%.
- Energy commodities do not experience major moves on Friday. Brent and WTI trades 0.2% higher.
- USD and CAD are the best performing major currencies while JPY and CHF lag the most.
Nasdaq-100 (US100) and other US indices slumped yesterday, erasing all of the post-FOMC gains. US100 is once again testing a support zone ranging below 12,900 pts handle. While yesterday’s plunge was very steep, it looks like the situation has calmed somewhat during overnight trading. Source: xStation5
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