Market Talk – August 24, 2022

ASIA:

Foreigners are returning to Indian stocks after dismissing them in the first half as they seek higher yields amid expectations that major central banks will slow their growth cycles as price pressures ease. Foreigners have invested $6.4 billion in Indian stocks since the start of July, after spending more than $27 billion in the previous six months, according to stock exchange data. Domestic investors bought over $30 billion worth of stocks in the first half, helping to prop up the market. But overseas investors took up the baton this month, pouring in more than $5 billion on the hope that Indian companies will deliver higher profits and that falling oil prices will help reduce the country’s current account deficit.

Russian oil and gas production in July was 10.76 million barrels per day (bpd), up from 10.70 million barrels per day in June, according to data released Wednesday by the Rosstat statistics office. Rosstat also said crude oil production excluding gas condensate was 42.2 million tonnes last month, up from 40.7 million tonnes in June, down a day. It also said liquefied natural gas (LNG) production reached 2.3 million tonnes in July, up 25% year-on-year but down 7% from June. Natural gas production was 36.5 billion cubic meters last month, down 24.5% from July 2021 and down 6.9% from June 2022.

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The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 139.28 points or -0.49% to 28,313.47
  • Shanghai decreased 61.02 points or -1.86% to 3,215.20
  • Hang Seng decreased 234.51 points or -1.20% to 19,268.74
  • ASX 200 increased 36.30 points or 0.52% to 6,998.10
  • Kospi increased 12.11 points or 0.50% to 2,447.45
  • SENSEX increased 54.13 points or 0.09% to 59,085.43
  • Nifty50 increased 27.45 points or 0.16% to 17,604.95

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.00091 or -0.13% to 0.69054
  • NZDUSD decreased 0.00291 or -0.47% to 0.61829
  • USDJPY increased 0.248 or 0.18% to 137.043
  • USDCNY increased 0.02392 or 0.35% to 6.87712

Precious Metals:

l Gold increased 1.43 USD/t oz. or 0.08% to 1,749.10

l Silver decreased 0.121 USD/t. oz or -0.63% to 19.039

Some economic news from last night:

South Korea:

Manufacturing BSI Index (Sep) increased from 80 to 82

Some economic news from today:

EUROPE/EMEA:

The major Europe stock markets had a mixed day:

l CAC 40 increased 24.74 points or 0.39% to 6,386.76

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l FTSE 100 decreased 16.60 points or -0.22% to 7,471.51

l DAX 30 increased 25.83 points or 0.20% to 13,220.06

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.00005 or -0.01% to 0.99646
  • GBPUSD decreased 0.00375 or -0.32% to 1.17887
  • USDCHF increased 0.00229 or 0.24% to 0.96609

Some economic news from Europe today:

Norway:

Credit Indicator (YoY) (Jul) increased from 5.1% to 5.2%

US/AMERICAS:

The National Association of Business Economics (NABE) found that 72% of polled economists are expecting the US to enter a recession. Around 20% stated that America is already in a recession, considering two quarters of GDP contraction and record-high inflation. An additional 20% expect the US economy to turn down further before the second half of 2023. Although Federal Reserve Chair Jerome Powell stated that he does not believe the “slow down” is a recession, the majority is less optimistic.

President Joe Biden announced this Wednesday that he will begin to cancel student debt for borrowers earning under $125,000 annually. Those eligible will receive a $10,000 debt cancelation, while Pell Grant recipients will see a $20,000 reduction.

US Market Closings:

  • Dow advanced 59.64 points or 0.18% to 32,969.23
  • S&P 500 advanced 12.04 points or 0.29% to 4,140.77
  • Nasdaq advanced 50.23 points or 0.41% to 12,431.53
  • Russell 2000 advanced 16.14 points or 0.84% to 1,935.29
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Canada Market Closings:

  • TSX Composite advanced 36.03 points or 0.18% to 20,021.38
  • TSX 60 declined 0.43 of a point or -0.04% to 1,207.99

Brazil Market Closing:

  • Bovespa advanced 40.74 points or 0.04% to 112,897.84

ENERGY:

The oil markets had a mixed day today:

l Crude Oil increased 0.688 USD/BBL or 0.73% to 94.428

l Brent increased 0.538 USD/BBL or 0.54% to 100.758

l Natural gas increased 0.1647 USD/MMBtu or 1.79% to 9.3577

l Gasoline decreased 0.146 USD/GAL or -4.98% to 2.7870

l Heating oil increased 0.1617 USD/GAL or 4.21% to 4.0036

The above data was collected around 13:57 EST on Wednesday

  • Top commodity gainers: Heating Oil (4.21%), Coffee (5.07%), Cocoa (4.43%) and Oat (2.50%)
  • Top commodity losers: Lean Hogs (-2.35%), Lumber (-4.40%), Copper (-1.52%) and Gasoline (-4.98%)

The above data was collected around 14:07 EST on Wednesday.

BONDS:

Japan 0.224%(+0bp), US 2’s 3.38% (+0.076%), US 10’s 3.1095% (+5.55bps); US 30’s 3.32% (+0.064%), Bunds 1.370% (+4.9bp), France 1.9850% (+7.1bp), Italy 3.6740% (+0bp), Turkey 12.81% (-48bp), Greece 3.973% (+3.4bp), Portugal 2.493% (+8.1bp); Spain 2.590% (+8.2bp) and UK Gilts 2.6970% (+0bp).

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