Market Talk – July 8, 2022

ASIA:

Japan’s household spending posted a surprise drop in May, falling for the third consecutive month as the global chip shortage hurt car sales in a worrying sign for the outlook of the world’s third-largest economy. Households are also facing pressure from the yen’s sharp decline that is pushing up prices of imported fuel and food at a time when consumer confidence still has to fully shake off the drag of the coronavirus pandemic. Spending slipped 0.5% in May from a year earlier, government data showed on Friday, dragged down by lower expenditure on vegetables as well as cars, where supplies have been hit by chip shortages and supply chain disruption.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 26.66 points or 0.10% to 26,517.19
  • Shanghai decreased 8.32 points or -0.25% to 3,356.08
  • Hang Seng increased 82.20 points or 0.38% to 21,725.78
  • ASX 200 increased 30.00 points or 0.45% to 6,678.00
  • Kospi increased 16.34 points or 0.70% to 2,350.61
  • SENSEX increased 303.38 points or 0.56% to 54,481.84
  • Nifty50 increased 87.70 points or 0.54% to 16,220.60

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00079 or 0.12% to 0.68538
  • NZDUSD increased 0.0015 or 0.24% to 0.61900
  • USDJPY increased 0.146 or 0.11% to 136.121
  • USDCNY decreased 0.00343 or -0.05% to 6.68877
Related:  Market Talk - April 23, 2022

Precious Metals:

  • Gold increased 4.25 USD/t oz. or 0.24% to 1,743.86
  • Silver increased 0.117 USD/t. oz or 61% to 19.310

Some economic news from last night:

Japan:

Household Spending (YoY) (May) increased from -1.7% to -0.5%

Household Spending (MoM) (May) decreased from 1.0% to -1.9%

Adjusted Current Account decreased from 0.51T to 0.01T

Bank Lending (YoY) (Jun) increased from 0.7% to 1.3%

Current Account n.s.a. (May) decreased from 0.501T to 0.128T

Some economic news from today:

Japan:

Economy Watchers Current Index (Jun) decreased from 54.0 to 52.9

India:

FX Reserves, USD decreased from 593.32B to 588.31B

EUROPE/EMEA:

Hedge funds posted a negative performance in June, bringing losses this year to almost 6%, as volatility across markets accelerated, a report by hedge fund data provider HFR showed on Friday. The fund weighted composite index fell 3.08% last month. All four different hedge fund categories tracked by HFR – equity, event-driven, macro and relative value – posted losses in June. Macro hedge funds, however, are still in positive territory for the first half of the year, up 8.98%.

The major Europe stock markets had a green day:

  • CAC 40 increased 26.43 points or 0.44% to 6,033.13
  • FTSE 100 increased 7.16 points or 0.10% to 7,196.24
  • DAX 30 increased 172.01 points or 1.34% to 13,015.23
Related:  Market Talk - May 13, 2022

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.00063 or -0.06% to 1.01607
  • GBPUSD decreased 0.00028 or -0.02% to 1.20214
  • USDCHF increased 0.00477 or 0.49% to 0.97847

Some economic news from Europe today:

France:

French Current Account (May) decreased from -2.70B to -3.90B

French Exports (May) increased from 47.1B to 47.8B

French Imports (May) increased from 59.8B to 60.8B

French Trade Balance (May) decreased from -12.7B to -13.0B

Italy:

Italian Industrial Production (MoM) (May) decreased from 1.4% to -1.1%

Italian Industrial Production (YoY) (May) decreased from 3.9% to 3.4%

US/AMERICAS:

The June jobs report showed a strengthening labor market after payrolls grew by 372,000, according to the Bureau of Labor Statistics. Analysts had expected a rise of only 250,000. A separate calculation that includes discourages and part-time workers also fell from 6.7% to 7.1%. The current unemployment rate in the US remains unchanged at 3.6%.

The health care sector saw a massive rise of 77,800 positions last months, leading job gains, followed by professional and business services which saw a 74,000 rise, and leisure and hospitality which grew 67,000. Transportation and warehousing (35,500), manufacturing (29,000), information (25,000), wholesale trade (16,4000), retail (15,400), construction (13,000), and mining (6,000) all saw increases as well. The only sector to decline was government which saw a downturn of 9,000 due to a drop in federal employment.

Related:  Market Talk - September 8, 2022

US Market Closings:

  • Dow declined 46.4 points or -0.15% to 31,338.15
  • S&P 500 declined 3.24 points or -0.08% to 3,899.38
  • Nasdaq advanced 13.96 points or 0.12% to 11,635.31
  • Russell 2000 declined 0.24 of a points or -0.01% to 1,769.36

Canada Market Closings:

  • TSX Composite declined 40.31 points or 19,022.86
  • TSX 60 declined 2.15 points or -0.19% to 1,155.66

Brazil Market Closing:

  • Bovespa declined 440.78 points or -0.44% to 100,288.94

ENERGY:

The oil markets had a mixed day today:

  • Crude Oil increased 1.7 USD/BBL or 1.65% to 104.430
  • Brent increased 2.1 USD/BBL or 2.01% to 106.75
  • Natural gas decreased 0.147 USD/MMBtu or -2.33% to 6.1500
  • Gasoline increased 0.0305 USD/GAL or 0.89% to 3.4509
  • Heating oil decreased 0.0313 USD/GAL or -0.85% to 3.6426

The above data was collected around  12:36 EST on Friday

  • Top commodity gainers: Cotton (4.61%), Corn (3.41%), Wheat (5.70%) and Palladium (8.45%)
  • Top commodity losers: Copper (-1.59%), Zinc (-0.82%), Coffee (-2.35%) and Natural Gas (-2.33%)

The above data was collected around 12:53 EST on Friday.

BONDS: 

Japan 0.244%(+0bp), US 2’s 3.11% (+0.066%), US 10’s 3.0953% (+8.73bps); US 30’s 3.27% (+0.073%), Bunds 1.347% (+4.5bp), France 1.8840% (+3.1bp), Italy 3.382% (+0.5bp), Turkey 18.15% (-2bp), Greece 3.681% (+15.4bp), Portugal 2.435% (+3.6bp); Spain 2.423% (+2.2bp) and UK Gilts 2.2280% (+10bp).

Original Article

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