Market Talk – April 22, 2022

ASIA:

Tata Steel will stop doing business with Russia, India’s largest steelmaker by revenue said on Wednesday, making it the latest global company to cut ties with the country for invading Ukraine. Tata Steel is among only a handful of Indian companies that have halted business with Russia, with the move coming even as India abstains from condemning the invasion and has not imposed sanctions on Moscow. Infosys, India’s No. 2 software services firm, said last week it would move business out of Russia.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 335.21 points or 1.23% to 27,553.06
  • Shanghai decreased 71.24 points or -2.26% to 3,079.81
  • Hang Seng decreased 262.45 points or -1.25% to 20,682.22
  • ASX 200 increased 23.60 points or 0.31% to 7,592.80
  • Kospi increased 9.52 points or 0.35% to 2,728.21
  • SENSEX increased 874.18 points or 1.53% to 57,911.68
  • Nifty50 increased 256.05 points or 1.49% to 17,392.60

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.00740 or -1.00% to 0.73721
  • NZDUSD decreased 0.00500 or -0.74% to 0.67338
  • USDJPY increased 0.609 or 0.48% to 128.639
  • USDCNY increased 0.02870 or 0.45% to 6.47633

Precious Metals:

  • Gold decreased 16.06 USD/t oz. or -0.82% to 1,941.35
  • Silver decreased 0.676 USD/t. oz or -2.69% to 24.500

Some economic news from last night:

Japan:

Foreign Bonds Buying decreased from 10.2B to -72.7B

Foreign Investments in Japanese Stocks decreased from 1,675.3B to 406.5B

South Korea:

PPI (YoY) (Mar) increased from 8.5% to 8.8%

Related:  Market Talk - April 8, 2022

PPI (MoM) (Mar) increased from 0.5% to 1.3%

New Zealand:

CPI (YoY) (Q1) increased from 5.9% to 6.9%

CPI (QoQ) (Q1) increased from 1.4% to 1.8%

RBNZ Offshore Holdings (Mar) decreased from 53.80% to 53.70%

Some economic news from today

Hong Kong:

Unemployment Rate (Mar) increased from 4.5% to 5.0%

EUROPE/EMEA:

Binance is deactivating the accounts of its major clients in Russia, it said on Thursday, cutting back its services in the country in line with European Union sanctions. Binance told users that Russian nationals and people living in the country, as well as companies based there that hold crypto worth over 10,000 euros ($10,900), would be banned from making new deposits or trading. Accounts for Russia-linked users that have completed address checks and hold crypto worth less than 10,000 euros would remain active, Binance added.

Physical damage to Ukraine’s buildings and infrastructure from Russia’s invasion has reached roughly $60 billion and will rise further as the war continues, World Bank President David Malpass said on Thursday. Malpass told a World Bank conference on Ukraine’s financial assistance needs that the early estimate of “narrow” damage costs does not include the growing economic costs of the war to Ukraine.

The major Europe stock markets had a mixed day:

  • CAC 40 increased 90.19 points or 1.36% to 6,715.10
  • FTSE 100 decreased 1.27 points or -0.02% to 7,627.95
  • DAX 30 increased 140.38 points or 0.98% to 14,502.41

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.00120 or -0.11% to 1.08374
  • GBPUSD decreased 0.00320 or -0.24% to 1.30365
  • USDCHF increased 0.00550 or 0.58% to 0.95462
Related:  Market Talk - July 26, 2022

Some economic news from Europe today:

Norway:

Industrial Confidence (Q1) increased from 8.6 to 8.8

France:

French Business Survey (Apr) increased from 107 to 108

Euro Zone:

Consumer Confidence (Apr) increased from -18.7 to -16.9

Core CPI (YoY) (Mar) increased from 2.7% to 2.9%

Core CPI (MoM) (Mar) increased from 0.5% to 1.2%

CPI (MoM) (Mar) increased from 0.9% to 2.4%

CPI (YoY) (Mar) increased from 5.9% to 7.4%

CPI ex Tobacco (YoY) (Mar) increased from 5.9% to 7.6%

CPI ex Tobacco (MoM) (Mar) increased from 1.0% to 2.5%

CPI, n.s.a (Apr)decreased from 114.50 to 114.46

HICP ex Energy & Food (YoY) (Mar) increased from 2.9% to 3.2%

HICP ex Energy and Food (MoM) (Mar) increased from 0.6% to 1.1%

US/AMERICAS:

Fed Chair Powell said that a 50-point basis point hike in May is not off the table, stating that he want to move “a little more quickly.” Inflation is currently running at 8.5% — the fastest pace in 40 years. Unlike the previous 25-point rise, Powell believes a steeper hike is “essential to restore price stability.” Inflation has reached a level that threatens a new recession, as the Fed is now admitting. “Our goal is to use our tools to get demand and supply back in synch, so that inflation moves down and does so without a slowdown that amounts to a recession,” Powell said. “I don’t think you’ll hear anyone at the Fed say that that’s going to be straightforward or easy. It’s going to be very challenging. We’re going to do our best to accomplish that.”

Related:  Market Talk - May 16, 2022

US Market Closings:

  • Dow declined 368.03 points or -1.05% to 34,792.76
  • S&P 500 declined 65.79 points or -1.48% to 4,393.66
  • Nasdaq declined 278.41 points or -2.07% to 13,174.65
  • Russell 2000 declined 46.72 points or -2.29% to 1,991.46

Canada Market Closings:

  • TSX Composite declined 347.97 points or -1.58% to 21,650.41
  • TSX 60 declined 18.72 points or -1.41% to 1,310.19

Brazil Market Closing:

  • Bovespa declined 712.88 points or 0.62% to 114,343.78

ENERGY:

The oil markets had a mixed day today:

  • Crude Oil increased 0.73 USD/BBL or 0.71% to 102.920
  • Brent increased 0.52 USD/BBL or 0.49% to 107.32
  • Natural gas decreased 0.118 USD/MMBtu or -1.70% to 6.8190
  • Gasoline decreased 0.0074 USD/GAL or -0.23% to 3.2774
  • Heating oil decreased 0.1262 USD/GAL or -3.18% to 3.8469

The above data was collected around 12:50 EST on Thursday

  • Top commodity gainers: Coal (1.42%) and Bitumen (2.11%), Coffee(4.09%), Lumber (2.45%)
  • Top commodity losers: Wheat(-2.82%), Platinum (-2.12%), Heating Oil (-3.18%) and Silver (-2.69%)

The above data was collected around 12:56 EST on Thursday

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BONDS:

Japan 0.255%(+0.4bp), US 2’s 2.71% (+0.130%), US 10’s 2.9483% (+11.43bps); US 30’s 2.97% (+0.093%), Bunds 0.965% (+10.3bp), France 1.421% (+8.3bp), Italy 2.625% (+11.7bp), Turkey 21.12% (+21bp), Greece 2.969% (+8.9bp), Portugal 1.975% (+10.8bp); Spain 1.920% (+11.3bp) and UK Gilts 2.024% (+10.6bp).

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