Market Talk – July 5, 2022

ASIA:

India’s gold imports in June nearly trebled from year-ago levels on correction in prices and as jewelers replenished inventories after robust sales during a key festival, Reuters reported. Higher imports by the world’s second-biggest bullion consumer could support benchmark gold prices, but the surge may increase India’s trade deficit and put pressure on ailing rupee. Local gold futures fell close to the lowest level in three months in June. In May, India’s gold imports had jumped 677% from a year ago to the highest level in a year and contributed in widening the country’s trade deficit and putting pressure on rupee.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 269.66 points or 1.03% to 26,423.47
  • Shanghai decreased 1.40 points or -0.04% to 3,404.03
  • Hang Seng increased 22.72 points or 0.10% to 21,853.07
  • ASX 200 increased 16.70 points or 0.25% to 6,629.30
  • Kospi increased 41.44 points or 1.80% to 2,341.78
  • SENSEX decreased 100.42 points or -0.19% to 53,134.35
  • Nifty50 decreased 24.50 points or -0.15% to 15,810.85

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.01068 or -1.55% to 0.67697
  • NZDUSD decreased 0.00648 or -1.04% to 0.61402
  • USDJPY decreased 0.18 or -0.13% to 135.745
  • USDCNY increased 0.02342 or 0.35% to 6.71732

Precious Metals:

l Gold decreased 44.53 USD/t oz. or -2.46% to 1,764.59

l Silver decreased 0.800 USD/t. oz or -4.01% to 19.154

Some economic news from last night:

China:

Caixin Services PMI (Jun) increased from 41.4 to 54.5

Japan:

Average Cash Earnings (YoY) decreased from 1.3% to 1.0%

Overall wage income of employees (May) decreased from 1.3% to 1.0%

Overtime Pay (YoY) (May) decreased from 5.90% to 5.50%

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Services PMI (Jun) decreased from 54.2 to 54.0

South Korea:

FX Reserves – USD (Jun) decreased from 447.71B to 438.28B

CPI (YoY) (Jun) increased from 5.4% to 6.0%

CPI (MoM) (Jun) decreased from 0.7% to 0.6%

Australia:

AIG Construction Index (Jun) decreased from 50.4 to 46.2

Services PMI decreased from 53.2 to 52.6

Retail Sales (MoM) remain the same at 0.9%

New Zealand:

ANZ Commodity Price Index (MoM) increased from -4.3% to -0.4%

NZIER Business Confidence (Q2) decreased from -40% to -65%

NZIER QSBO Capacity Utilization (Q2) decreased from 97.1% to 93.4%

Some economic news from today:

Australia:

RBA Interest Rate Decision (Jul) increased from 0.85% to 1.35%

India:

Nikkei Services PMI (Jun) increased from 58.9 to 59.2

Singapore:

Retail Sales (MoM) (May) increased from 1.1% to 1.8%

Retail Sales (YoY) (May) increased from 12.1% to 17.8%

New Zealand:

GlobalDairyTrade Price Index decreased from -1.3% to -4.1%

EUROPE/EMEA:

A stampede for dollars as global recession risks mount has left other currencies battered and bruised, with the euro getting trampled on more than most as surging European gas prices worsen economic growth fears. The euro is seen as particularly vulnerable given Germany, Italy and others’ heavy dependence on Russian gas, and fears that sizeable European Central Bank rate hikes could reignite another euro zone debt crisis. The euro has lost 10% versus the dollar this year and at $1.0238 is close to the psychologically crucial parity point it last saw in mid-2002, when it was just three years old. Surging gas prices and warnings of a big cut in Russia’s supply are driving concern of a major European energy crisis this winter.

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The major Europe stock markets had a negative day:

  • CAC 40 decreased 159.69 points or -2.68% to 5,794.96
  • FTSE 100 decreased 207.18 points or -2.86% to 7,025.47
  • DAX 30 decreased 372.18 points or -2.91% to 12,401.20

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.01827 or -1.75% to 1.02486
  • GBPUSD decreased 0.01886 or -1.56% to 1.19280
  • USDCHF increased 0.00821 or 0.85% to 0.96931

Some economic news from Europe today:

France:

French Industrial Production (MoM) (May) increased from -0.3% to 0.0%

French S&P Global Composite PMI (Jun) decreased from 56.1 to 52.5

French Services PMI (Jun) decreased from 58.3 to 53.9

Spain:

Spanish Services PMI (Jun) decreased from 56.5 to 54.0

Spanish Consumer Confidence decreased from 76.0 to 65.8

Italy:

Italian Composite PMI (Jun) decreased from 52.4 to 51.3

Italian Services PMI (Jun) decreased from 53.7 to 51.6

Italian Public Deficit (Q1) increased from 3.0% to 9.0%

Germany:

German Composite PMI (Jun) decreased from 53.7 to 51.3

German Services PMI (Jun) decreased from 55.0 to 52.4

Euro Zone:

S&P Global Composite PMI (Jun) decreased from 54.8 to 52.0

Services PMI (Jun) decreased from 56.1 to 53.0

UK:

Composite PMI (Jun) increased from 53.1 to 53.7

Services PMI (Jun) increased from 53.4 to 54.3

US/AMERICAS:

US Treasury Secretary Janet Yellen admitted that removing tariffs on China will not combat inflation. “I think some reductions may be warranted and could help to bring down the prices of things that people buy that are burdensome,” Yellen said. “I want to make clear, I honestly don’t think tariff policy is a panacea with respect to inflation.” Yellen spoke with Chinese Vice Premier Liu He yesterday to discuss potentially removing some tariffs, although Yellen criticized China for having what she believes is an “unfair, non-market” economy.

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US Market Closings:

  • Dow declined 129.44 points or -0.42% to 30,967.82
  • S&P 500 advanced 6.06 points or 0.16% to 3,831.39
  • Nasdaq advanced 194.39 points or 1.75% to 11,322.24
  • Russell 2000 advanced 13.57 points or 0.79% to 1,741.33

Canada Market Closings:

  • TSX Composite declined 194.7 points or -1.02% to 18,834.16
  • TSX 60 declined 8.21 points or -0.71% to 1,147.46

Brazil Market Closing:

  • Bovespa declined 314.12 points or -0.32% to 98,294..64

ENERGY:

The oil markets had a negative day today:

  • Crude Oil decreased 10.21 USD/BBL or -9.42% to 98.220
  • Brent decreased 11.83 USD/BBL or -10.42% to 101.67
  • Natural gas decreased 0.402 USD/MMBtu or -6.87% to 5.4490
  • Gasoline decreased 0.3591 USD/GAL or -9.81% to 3.3022
  • Heating oil decreased 0.314 USD/GAL or -7.98% to 3.6230

The above data was collected around 13:48 EST on Tuesday

l Top commodity gainers: Bitumen (0.54%), Palladium (0.63%), lean Hogs (2.44%)

l Top commodity losers: Brent (-10.42%), Gasoline (-9.81%), Crude Oil (-9.42%) and Heating Oil (-7.98%)

The above data was collected around 13:58 EST on Tuesday.

BONDS:

Japan 0.220%(+0.1bp), US 2’s 2.82% (-0.106%), US 10’s 2.8000% (-13.72bps); US 30’s 3.01% (-0.150%), Bunds 1.186% (-15.1bp), France 1.7970% (-13.9bp), Italy 3.271% (-7.6bp), Turkey 18.25% (-31bp), Greece 3.386% (-15.3bp), Portugal 2.334% (-8.6bp); Spain 2.325% (-8.9bp) and UK Gilts 2.0530% (-14.4bp).

Original Article

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