Market Talk – April 29, 2022

ASIA:

India will provide a subsidy of 609.4 billion rupees ($7.96 billion) for phosphatic and potash-based fertilizers over the coming months to insulate farmers from higher global prices, the government official informed. The subsidy will cover the period to September 2022. India provided a subsidy of 571.5 billion rupees for the previous 12-month period ending March 31. The decision to raise the fertilizers subsidy was taken after a spike in the prices of crop nutrients in global markets, mainly due to supply chain disruption after Russia’s invasion of Ukraine, increased freight and rising energy costs.

The major Asian stock markets had a green day today:

  • NIKKEI 225 increased 461.27 points or 1.75% to 26,847.90
  • Shanghai increased 17.20 points or 0.58% to 2,975.48
  • Hang Seng increased 329.81 points or 1.65% to 20,276.17
  • ASX 200 increased 95.70 points or 1.32% to 7,356.90
  • Kospi increased 28.43 points or 1.08% to 2,667.49
  • SENSEX increased 701.67 points or 1.23% to 57,521.06
  • Nifty50 increased 206.65 points or 1.21% to 17,245.05

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.0025 or -0.35% to 0.70975
  • NZDUSD decreased 0.00473 or -0.72% to 0.64918
  • USDJPY increased 2.505 or 1.95% to 130.922
  • USDCNY increased 0.07154 or 1.09% to 6.66047

Precious Metals:

  • Gold increased 2.99 USD/t oz. or 0.16% to 1,889.11
  • Silver decreased 0.195 USD/t. oz or -0.84% to 23.090

Some economic news from last night:

Japan:

Foreign Bonds Buying decreased from -73.1B to -1,155.6B

Foreign Investments in Japanese Stocks increased from 406.2B to 595.1B

Industrial Production (MoM) (Mar) decreased from 2.0% to 0.3%

Industrial Production forecast 1m ahead (MoM) (Apr) increased from 3.6% to 5.8%

Industrial Production forecast 2m ahead (MoM) (May) decreased from 9.6% to -0.8%

Retail Sales (YoY) (Mar) increased from -0.9% to 0.9%

BoJ Interest Rate Decision remain the same at -0.10%

South Korea:

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Manufacturing BSI Index (May) increased from 83 to 85

Australia:

Export Price Index (QoQ) (Q1) increased from 3.5% to 18.0%

Import Price Index (QoQ) (Q1) decreased from 5.8% to 5.1%

New Zealand:

Exports (Mar) increased from 5.22B to 6.67B

Imports (Mar) increased from 5.91B to 7.06B

Trade Balance (YoY) (Mar) decreased from -8,680M to -9,110M

Trade Balance (MoM) (Mar) increased from -691M to -392M

ANZ Business Confidence (Apr) decreased from -41.9 to -42.0

NBNZ Own Activity (Apr) increased from 3.3% to 8.0%

Singapore:

Unemployment Rate decreased from 2.3% to 2.2%

Some economic news from today

Hong Kong:

Exports (MoM) (Mar) decreased from 0.9% to -8.9%

Imports (MoM) (Mar) decreased from 6.2% to -6.0%

Trade Balance increased from -32.1B to 37.3B

Japan:

Construction Orders (YoY) (Mar) decreased from -2.3% to -21.2%

Housing Starts (YoY) (Mar) decreased from 6.3% to 6.0%

EUROPE/EMEA:

The European Commission on Thursday warned buyers of Russian gas they could breach sanctions if they converted gas payments into roubles, as officials struggled to clarify the EU’s stance on Moscow’s payments scheme, which has sowed confusion in the bloc. Russian gas giant Gazprom cut supplies to Poland and Bulgaria on Wednesday after they refused to pay for gas in roubles, marking Moscow’s toughest response yet to sanctions imposed by the West over the conflict in Ukraine. The escalation follows a decree issued by Russian President Vladimir Putin last month requiring that countries Moscow deems “unfriendly” must pay for gas in roubles under a new payment scheme. European Union energy ministers will meet on Monday to discuss the situation, which has left member states divided over whether sanctions would be broken if they used Russia’s mechanism.

The major Europe stock markets had a green day:

  • CAC 40 increased 62.88 points or 0.98% to 6,508.14
  • FTSE 100 increased 83.58 points or 1.13% to 7,509.19
  • DAX 30 increased 185.90 points or 1.35% to 13,979.84
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The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.00417 or -0.40% to 1.05110
  • GBPUSD decreased 0.00725 or -0.58% to 1.24656
  • USDCHF increased 0.00207 or 0.21% to 0.97083

Some economic news from Europe today:

Norway:

Unemployment Rate (Feb) remain the same at 3.1%

Spain:

Spanish CPI (YoY) decreased from 9.8% to 8.4%

Spanish CPI (MoM) decreased from 3.0% to -0.1%

Spanish HICP (YoY) (Apr) decreased from 9.8% to 8.3%

Spanish HICP (MoM) decreased from 3.9% to -0.2%

Spanish Unemployment Rate (Q1) increased from 13.33% to 13.65%

Spanish Business Confidence decreased from 5.1 to -0.6

Italy:

Italian Business Confidence (Apr) decreased from 110.1 to 110.0

Italian Consumer Confidence (Apr) decreased from 100.8 to 100.0

Italian Industrial Sales (MoM) (Feb) increased from 2.30% to 2.80%

Italian Industrial Sales (YoY) (Feb) increased from 16.90% to 20.90%

Germany:

German CPI (YoY) (Apr) increased from 7.3% to 7.4%

German CPI (MoM) (Apr) decreased from 2.5% to 0.8%

German HICP (MoM) (Apr) decreased from 2.5% to 0.7%

German HICP (YoY) (Apr) increased from 7.6% to 7.8%

US/AMERICAS:

The US economy shrank by 1.4% during Q1 according to newly released data. The US trade deficit soared 17.8% in March to a record-breaking $125.3 billion. The Richmond Fed reported that manufacturers are paying 11.83% more on raw materials compared to last year. Exports rose 7.7%, but imports advanced 11.5%. Wholesale inventories rose 2.3% in March as well, with retail inventories advancing 2%.

Boeing’s failed deal with Air Force One led to a $1.1 billion loss, the company stated this Wednesday. CEO Dave Calhoun said he regrets making the deal with former President Trump to modify two 747 jets to become Air Force One, the official jet of the President of the United States. Boeing stock declined -7.53% today after it reported a net loss of $1.2 billion during Q1 ($660 million loss in Q1 from this failed deal alone).

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The 30-year fixed mortgage average reached a new high this week after rising to 5.37%. The rate has not been that high since 2009 when the housing market was grappling with the Great Recession. The Mortgage Bankers Association noted that demand is slowing as applications fell 8.3% last week compared to the week prior. Compared to last year at this time, demand has declined 71%.

US Market Closings:

  • Dow advanced 614.46 points or 1.85% to 33,916.39
  • S&P 500 advanced 103.54 points or 2.47% to 4,287.5
  • Nasdaq advanced 382.6 points or 3.06% to 12,871.53
  • Russell 2000 advanced 33.91 points or 1.8% to 1,917.94

Canada Market Closings:

  • TSX Composite advanced 376.83 points or 1.82% to 21,121.06
  • TSX 60 advanced 22.31 points or 1.78% to 1,277.98

Brazil Market Closing:

  • Bovespa advanced 569.6 points or 0.52% to 109,918.97

ENERGY:

The oil markets had a mixed day today:

  • Crude Oil increased 2.28 USD/BBL or 2.23% to 104.300
  • Brent increased 1.52 USD/BBL or 1.44% to 106.84
  • Natural gas decreased 0.205 USD/MMBtu or -2.82% to 7.0610
  • Gasoline increased 0.051 USD/GAL or 1.48% to 3.5070
  • Heating oil increased 0.2387 USD/GAL or 5.11% to 4.9130

The above data was collected around 13:05 EST on Thursday

  • Top commodity gainers: Heating Oil (5.11%) and Crude Oil (2.23%), Oat (4.13%), Bitumen (2.16%)
  • Top commodity losers: Aluminum(-1.66%), Zinc (-2.36%), Lumber (-2.87%) and Natural Gas (-2.82%)

The above data was collected around 13:15 EST on Thursday

BONDS:

Japan 0.2200%(-2.4bp), US 2’s 2.64% (+0.045%), US 10’s 2.8629% (+3.69bps); US 30’s 2.93% (+0.017%), Bunds 0.899% (+8.9bp), France 1.401% (+9.8bp), Italy 2.710% (+13.9bp), Turkey 19.89% (-23bp), Greece 3.201% (+15.9bp), Portugal 1.959% (+9.8bp); Spain 1.94% (+13.5bp) and UK Gilts 1.874% (+5.6bp).

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