Market Talk – May 18, 2022

ASIA:

The major Asian stock markets had a mixed day today:
• NIKKEI 225 increased 251.45 points or 0.94% to 26,911.20
• Shanghai decreased 7.72 points or -0.25% to 3,085.98
• Hang Seng increased 41.76 points or 0.20% to 20,644.28
• ASX 200 increased 70.20 points or 0.99% to 7,182.70
• Kospi increased 5.54 points or 0.21% to 2,625.98
• SENSEX decreased 109.94 points or -0.20% to 54,208.53
• Nifty50 decreased 19.00 points or -0.12% to 16,240.30

The major Asian currency markets had a mixed day today:
• AUDUSD decreased 0.00353 or -0.50% to 0.69949
• NZDUSD decreased 0.00287 or -0.45% to 0.63313
• USDJPY   decreased 1.2 or -0.93% to 128.298
• USDCNY increased 0.03674 or 0.55% to 6.77119

Precious Metals:
• Gold increased 6.33 USD/t oz. or 0.35% to 1,821.00
• Silver decreased 0.053 USD/t. oz or  -0.25% to 21.562


Some economic news from last night:
China:
House Prices (YoY) (Apr) decreased from 1.5% to 0.7%
Japan:
Reuters Tankan Index (May) decreased from 11 to 5
GDP (YoY) (Q1) decreased from 3.8% to -1.0%
GDP (QoQ) (Q1) decreased from 0.9% to -0.2%
GDP Capital Expenditure (QoQ) (Q1) increased from 0.4% to 0.5%
GDP External Demand (QoQ) (Q1) decreased from 0.1% to -0.4%
GDP Price Index (YoY) increased from -1.3% to -0.4%
GDP Private Consumption (QoQ) (Q1) decreased from 2.5% to 0.0%
Australia:
MI Leading Index (MoM) decreased from 0.3% to -0.2%
Wage Price Index (QoQ) (Q1) remain the same at 0.7%
Wage Price Index (YoY) (Q1) increase from 2.3% to 2.4%

Some economic news from today
Japan:
Capacity Utilization (MoM) (Mar) decreased from 1.5% to -1.6%
Industrial Production (MoM) (Mar) decreased from 2.0% to 0.3%



EUROPE/EMEA:

The major Europe stock markets had a negative day:

• CAC 40 decreased 77.25 points or -1.20% to 6,352.94
• FTSE 100 decreased 80.26 points or -1.07% to 7,438.09
• DAX 30  decreased 178.18 points or -1.26% to 14,007.76


The major Europe currency markets had a negative day today:
• EURUSD decreased 0.00579 or -0.55% to 1.04881
• GBPUSD decreased 0.01055 or -0.84% to 1.23798
• USDCHF decreased 0.00661 or -0.66% to 0.98755

Some economic news from Europe today:
France:
French Car Registration (MoM) (Apr) decreased from 27.5% to -26.1%
French Car Registration (YoY) (Apr) decreased from -19.5% to -22.6%
UK:
House Price Index (YoY) decreased from 11.3% to 9.8%
Core CPI MoM (MoM) (Apr) decreased from 0.9% to 0.7%
Core CPI (YoY) (Apr) increased from 5.7% to 6.2%
Core PPI Output (MoM) (Apr) decreased from 1.8% to 1.6%
Core PPI Output (YoY) (Apr) increased from 11.8% to 13.0%
Core RPI (MoM) (Apr) increased from 1.0% to 3.5%
Core RPI (YoY) (Apr) increased from 9.1% to 11.2%
CPI (YoY) (Apr) increased from 7.0% to 9.0%
CPI (MoM) (Apr) increased from 1.1% to 2.5%
CPI, n.s.a (Apr) increased from 117.10 to 120.00
PPI Input (YoY) (Apr) remain the same at 18.6%
PPI Input (MoM) (Apr) decreased from 4.6% to 1.1%
PPI Output (YoY) (Apr) increased from 11.9% to 14.0%
PPI Output (MoM) (Apr) increased from 1.9% to 2.3%
RPI (MoM) (Apr) increased from 1.0% to 3.4%
RPI (YoY) (Apr) increased from 9.0% to 11.1%
Italy:
Italian Car Registration (MoM) (Apr) decreased from 7.8% to -18.5%
Italian Car Registration (YoY) (Apr) decreased from -29.7% to -33.0%
Germany:
German Car Registration (MoM) (Apr) decreased from 20.4% to -25.3%
German Car Registration (YoY) (Apr) decreased from -17.5% to -21.5%
Euro Zone:
Core CPI (YoY) (Apr) increased from 3.0% to 3.5%
Core CPI (MoM) (Apr) decreased from 1.1% to 1.0%
CPI (MoM) (Apr) decreased from 2.4% to 0.6%
CPI (YoY) (Apr) decreased from 7.5% to 7.4%
CPI ex Tobacco (MoM) (Apr) decreased from 2.5% to 0.6%
CPI ex Tobacco (YoY) (Apr) remain the same at 7.6%
HICP ex Energy & Food (YoY) (Apr) remain the same at 3.9%
HICP ex Energy and Food (MoM) (Apr) increased from 1.1% to 1.2%

US/AMERICAS:

Related:  Market Talk - April 28, 2022

The Dow experienced its most significant decline since 2020 this Wednesday. All of Wall Street turned red during trading after poor earnings reports contributed to a sell-off. As inflation soars, consumers are putting more money toward the essentials such as food and gas rather than retail. Target shares declined 24% midday after the company reported much lower than expected earnings. Walmart also released a disappointing earnings report this week and dropped by 11% on Tuesday followed by 6% midday on Wednesday. Discount retailers saw notable midday declines such as Dollar Tree (17%) and Dollar General (11%). Macy’s declined 9%, Kohl’s lost 10%, and other followed suit as the sell-off continues.

Related:  Market Talk - August 22, 2022

Yardeni Research recently revealed that US households are spending on average $5,000 annual on gasoline. Average households are spending nearly double on gas compared to last year when the average sat at $2,8000. Gas in the US surged 37% this April compared to one year ago, the Commerce Department declared.

US Market Closings:

  • Dow declined 1,164.52 points or -3.57% to 31,490.07
  • S&P 500 declined 165.17 points or -4.04% to 3,923.68
  • Nasdaq declined 566.37 points or -4.73% to 11,418.15
  • Russell 2000 declined 65.45 points or -3.56% to 1,774.85

Canada Market Closings:

  • TSX Composite declined 389.63 points or -1.9% to 20,101.38
  • TSX 60 declined 22.92 points or -1.85% to 1,217.95
Related:  Market Talk - July 8, 2022

Brazil Market Closing:

  • Bovespa declined 2,542.18 points or -2.34% to 16,246.15


ENERGY:

The oil markets had a negative day today:

• Crude Oil decreased 2.55 USD/BBL or -2.27% to 109.8500
• Brent decreased 2.47 USD/BBL or -2.21% to 109.46
• Natural gas decreased 0.038 USD/MMBtu or -0.46% to 8.2660
• Gasoline decreased 0.177 USD/GAL or -4.49% to 3.7647
• Heating oil decreased 0.1378 USD/GAL or -3.63% to 3.6615

The above data was collected around 12:30 EST on Wednesday

• Top commodity gainers: Lean Hogs (0.40%) and Palm Oil (0.28%),  Gold (0.35%),  Soda Ash (0.55%)
• Top commodity losers:  Lumber (-5.20%), Canola (-4.07%), Gasoline (-4.49%) and Methanol (-3.64%)

The above data was collected around 12:38 EST on Wednesday.


BONDS: 

Japan 0.250%(+0.6bp), US 2’s 2.66% (-0.047%), US 10’s 2.9149% (-8.03bps); US 30’s 3.11% (-0.086%), Bunds 1.026% (-3bp), France 1.529% (-1.5bp), Italy 2.975% (+0.9bp), Turkey 23.43% (+0bp), Greece 3.59% (+1.6bp), Portugal 2.18% (-0.4bp); Spain 2.122% (+0.2bp) and UK Gilts 1.8730% (-1.2bp).

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