Market Talk – June 8, 2022

ASIA:

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 290.34 points or 1.04% to 28,234.29
  • Shanghai increased 22.03 points or 0.68% to 3,263.79
  • Hang Seng increased 482.92 points or 2.24% to 22,014.59
  • ASX 200 increased 25.40 points or 0.36% to 7,121.10
  • Kospi decreased 0.19 points or -0.01% to 2,626.15
  • SENSEX decreased 214.85 points or -0.39% to 54,892.49
  • Nifty50 decreased 60.10 points or -0.37% to 16,356.25

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.00213 or -0.29% to 0.72037
  • NZDUSD decreased 0.00276 or -0.43% to 0.64568
  • USDJPY increased 1.337 or 1.01% to 134.115
  • USDCNY increased 0.01959 or 0.29% to 6.69345

Precious Metals:

l Gold increased 2.77 USD/t oz. or 0.15% to 1,854.74

l Silver decreased 0.102 USD/t. oz or -0.46% to 22.103

Some economic news from last night:

Japan:

Adjusted Current Account decreased from 1.56T to 0.51T

Current Account n.s.a. (Apr) decreased from 2.549T to 0.501T

GDP (QoQ) (Q1) increased from -0.2% to -0.1%

GDP (YoY) (Q1) increased from -1.0% to -0.5%

South Korea:

GDP (QoQ) (Q1) decreased from 1.2% to 0.6%

GDP (YoY) (Q1) decreased from 4.2% to 3.0%

Some economic news from today:

Japan:

Economy Watchers Current Index (May) increased from 50.4 to 54.0

India:

Interest Rate Decision increased from 4.40% to 4.90%

Related:  The 1970s Bear Market Analog Looks Intact

Reverse REPO Rate remain the same at 3.35%

Cash Reserve Ratio remain the same at 4.50%

EUROPE/EMEA:

The major Europe stock markets had a negative day:

l CAC 40 decreased 51.72 points or -0.80% to 6,448.63

l FTSE 100 decreased 5.93 points or -0.08% to 7,593.00

l DAX 30 decreased 110.63 points or -0.76% to 14,445.99

The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00239 or 0.22% to 1.07246
  • GBPUSD decreased 0.00467 or -0.37% to 1.25430
  • USDCHF increased 0.00309 or 0.32% to 0.97637

Some economic news from Europe today:

Swiss:

Unemployment Rate n.s.a. (May) decreased from 2.3% to 2.1%

Unemployment Rate s.a. (May) remain the same at 2.2%

Germany:

German Industrial Production (MoM) (Apr) increased from -3.7% to 0.7%

France:

French Current Account (Apr) remain the same at -3.40B

French Exports (Apr) increased from 46.0B to 46.7B

French Imports (Apr) increased from 58.6B to 58.9B

French Reserve Assets Total (May) decreased from 245,991.0M to 237,654.0M

French Trade Balance (Apr) increased from -12.7B to -12.2B

Italy:

Italian Retail Sales (YoY) (Apr) increased from 5.6% to 8.4%

Italian Retail Sales (MoM) (Apr) increased from -0.6% to 0.0%

UK:

Construction PMI (May) decreased from 58.2 to 56.4

Halifax House Price Index (MoM) (May) decreased from 1.2% to 1.0%

Related:  Market Talk - June 21, 2022

Halifax House Price Index (YoY) decreased from 10.8% to 10.5%

Euro Zone:

Employment Change (QoQ) (Q1) increased from 0.4% to 0.6%

Employment Change (YoY) (Q1) increased from 2.1% to 2.9%

Employment Overall (Q1) increased from 162,550.5K to 162,874.7K

GDP (YoY) (Q1) increased from 4.7% to 5.4%

GDP (QoQ) (Q1) increased from 0.2% to 0.6%

US/AMERICAS:

Mortgages are declining amid rising rates in the US. The 30-year fixed mortgage rate is now 5.4% compared to the prior week’s 5.33% average. Total volume for applications declined 6.5%, according to the Mortgage Bankers Association, marking the lowest level in over 20 years. Unsurprisingly, refinances declined as well by 6% — 75% lower than the same timeframe one year prior.

Securities Regulator Gary Gensler is proposing new restrictions for trading retail stocks after Melvin Capital debacle last year. Gensler wants to boost retail trading by changing the payment for order (PFOF) practice that many brokers use, such as E*Trade and Robinhood. “I asked staff to take a holistic, crossmarket view of how we could update our rules and drive greater efficiencies in our equity markets, particularly for retail investors,” Gensler said on Wednesday. Gensler would like to see “open and transparent” trades that allow retail investors to receive better prices and level the playing field.

Related:  S&P 500 futures fall slightly after a late-day rally and ahead of Fed minutes

US Market Closings:

  • Dow declined 269.24 points or -0.81% to 32,910.9
  • S&P 500 declined 44.91 points or -1.08% to 4,115.77
  • Nasdaq declined 88.96 points or -0.73% to 12,086.27
  • Russell 2000 declined 28.56 points or -1.49% to 1,891.01

Canada Market Closings:

  • TSX Composite declined 135.78 points or -0.65% to 20,792.43
  • TSX 60 declined 8.75 points or -0.69% to 1,254.51

Brazil Market Closing:

  • Bovespa declined 1,702.09 points or -1.55% to 108,367.67

ENERGY:

The oil markets had a mixed day today:

Crude Oil increased 3.29 USD/BBL or 2.76% to 122.700

Brent increased 3.33 USD/BBL or 2.76% to 123.90

Natural gas decreased 0.217 USD/MMBtu or -2.34% to 9.0760

Gasoline increased 0.047 USD/GAL or 1.13% to 4.2047

Heating oil decreased 0.0028 USD/GAL or -0.06% to 4.3178

The above data was collected around 13:19 EST on Wednesday

l Top commodity gainers: Crude Oil (2.76%), Cotton (2.88%), Brent (2.76%) and Orange Juice (3.51%)

l Top commodity losers: Palladium (-1.67%), Rhodium (-2.03%), Natural Gas (-2.34%) and Lumber (-4.79%)

The above data was collected around 13:27 EST on Wednesday.

BONDS:

Japan 0.248%(+0.3bp), US 2’s 2.76% (+0.029%), US 10’s 3.0252% (+4.61bps); US 30’s 3.18% (+0.045%), Bunds 1.358% (+7.1bp), France 1.8830% (+7.3bp), Italy 3.476% (+7.4bp), Turkey 24.78% (+214bp), Greece 3.970% (+14.6bp), Portugal 2.531% (+7.3bp); Spain 2.522% (+10.7bp) and UK Gilts 2.2460% (+3bp).

Leave a Comment