Good Morning Traders

  • US indices finished yesterday’s trading with a big drop. S&P 500 dropped 2.38%, Dow Jones moved 1.94% lower while Nasdaq slumped 2.75%. Russell 2000 dropped 2.12%.
  • Indices from Asia-Pacific follow the US lead and also trade lower. Nikkei drops 1.3%, S&P/ASX 200 trades 1.0% lower and Kospi declined 1.1%. Equities in China traded higher.
  • DAX futures point to a lower opening of the European cash session.
  • Deterioration in risk moods is reasoned with the pandemic situation in China, where lockdown started to be reimposed in Shanghai and mass testing will be conducted.
  • Oil continues a pullback started yesterday. Brent and WTI trade around 0.3% lower on the day and around $1 above session lows.
  • Chinese CPI inflation remained unchanged at 2.1% YoY in May (exp. 2.2% YoY). PPI inflation decelerated from 8.0% to 6.4% YoY (exp. 6.5% YoY).
  • Small gains can be spotted on the cryptocurrency market today. Ethereum trades 0.2% lower and slightly below $1,800. Bitcoin trades flat in the $30,000 area.
  • Precious metals are trading a touch lower with palladium being exception (+0.8%).
  • NZD and JPY are the best performing major currencies while USD and CAD lag the most.

Nasdaq-100 (US100) failed to break above the resistance zone marked with 23.6% retracement (12,900 pts area) and launched a pull back, which accelerated yesterday. A move back towards recent lows below 12,000 pts cannot be ruled out. Source: xStation5

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