Market Talk – May 24, 2022

ASIA:

The major Asian stock markets had a negative day today:

  • NIKKEI 225 decreased 253.38 points or -0.94% to 26,748.14
  • Shanghai decreased 75.93 points or -2.41% to 3,070.93
  • Hang Seng decreased 357.96 points or -1.75% to 20,112.10
  • ASX 200 decreased 20.10 points or -0.28% to 7,128.80
  • Kospi decreased 41.51 points or -1.57% to 2,605.87
  • SENSEX decreased 236.00 points or -0.43% to 54,052.61
  • Nifty50 decreased 89.55 points or -0.55% to 16,125.15

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00003 or 0.00% to 0.70920
  • NZDUSD decreased 0.00005 or -0.01% to 0.64503
  • USDJPY decreased 0.981 or -0.77% to 126.833
  • USDCNY decreased 0.00195 or -0.03% to 6.65783

Precious Metals:

  • Gold increased 11.81 USD/t oz. or 0.64% to 1,865.03
  • Silver increased 0.302 USD/t. oz or 1.39% to 22.073

Some economic news from last night:

Japan:

Manufacturing PMI (May) decreased from 53.5 to 53.2

Services PMI (May) increased from 50.7 to 51.7

South Korea:

Consumer Confidence (May) decreased from 103.8 to 102.6

Australia:

Manufacturing PMI decreased from 58.8 to 55.3

Services PMI decreased from 56.1 to 53.0

New Zealand:

Core Retail Sales (QoQ) decreased from 6.8% to 0.0%

Retail Sales (QoQ) (Q1) decreased from 8.6% to -0.5%

Retail Sales Quarterly Vs. Year Ago (Q1) decreased from 4.4% to 2.3%

Some economic news from today

Japan:

BoJ Core CPI (YoY) increased from 1.1% to 1.4%

EUROPE/EMEA:

Austria became the latest government to enter the green bond market with a 4 billion euro ($4.3 billion) debt sale on Tuesday. The bond, due to mature on May 23, 2049, is priced for a yield of 1.876%, and Austria’s Treasury retained 250 million euros of the issuance. European governments have shown strong interest in issuing green bonds, which fund environmentally friendly projects, as investor demand has surged in recent years. Following Tuesday’s issuance, Austria plans to raise another 1 billion euros this year from issuing short-term green debt, Austrian Treasury official Christian Schreckeis said.

Related:  Market Talk - July 6, 2022

The major Europe stock markets had a negative day:

  • CAC 40 decreased 105.60 points or -1.66% to 6,253.14
  • FTSE 100 decreased 29.09 points or -0.39% to 7,484.35
  • DAX 30 decreased 255.65 points or -1.80% to 13,919.75

The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00366 or 0.34% to 1.07242
  • GBPUSD decreased 0.00611 or -0.49% to 1.25153
  • USDCHF decreased 0.00454 or -0.47% to 0.96078

Some economic news from Europe today:

UK:

Public Sector Net Borrowing (Apr) increased from 13.91B to 17.80B

Public Sector Net Cash Requirement (Apr) increased from -1.498B to 2.367B

Composite PMI decreased from 58.2 to 51.8

Manufacturing PMI decreased from 55.8 to 54.6

Services PMI decreased from 58.9 to 51.8

CBI Distributive Trades Survey (May) increased from -35 to -1

France:

French Business Survey (May) decreased from 108 to 106

French Manufacturing PMI (May) decreased from 55.7 to 54.5

French Markit Composite PMI (May) decreased from 57.6 to 57.1

French Services PMI (May) decreased from 58.9 to 58.4

Germany:

German Composite PMI (May) increased from 54.3 to 54.6

German Manufacturing PMI (May) increased from 54.6 to 54.7

German Services PMI (May) decreased from 57.6 to 56.3

Related:  Market Talk - September 16, 2022

Euro Zone:

Manufacturing PMI (May) decreased from 55.5 to 54.4

Markit Composite PMI (May) decreased from 55.8 to 54.9

Services PMI (May) decreased from 57.7 to 56.3

US/AMERICAS:

CFM International, co-owned by General Electric and Safran, stated that their jet engines are facing the burden of the supply crisis. The company expects delays to persist for six to eight weeks. This spells trouble for the industry as CFM powers most of the world’s leading jetliners including Boeing 737 MAX and Airbus’ A320neo.

The Internal Revenue Service (IRS) has delayed delivering millions of refunds, but there’s good news – the refund may be accruing interest. The agency stated the rate will jump from 4% to 5% on July 1. The IRS typically takes no longer then 45 to process a return, and will pay interest to those waiting longer. Due to the long backlog, the IRS paid $3.3 billion in interest payments for the fiscal year of 2021, marking a 33% increase from individual returns in 2020.

The house buying frenzy is finally beginning to cool in the US. According to the US Census, newly built homes declined 16.6% in value from April to March. Furthermore, prices of new homes plummeted 26.9% in April on an annual basis. The annualized rate reached 591,000 units, lower than the expected 750,000. This marks the slowest pace of home buying in the US since April 2020 when the lockdown was in full swing. Rising mortgage rates are also stifling demand with the 30-year fixed loan sitting at 4.88% at the beginning of April and ending the month at 5.41%. Still, the 40-year high in inflation has caused home prices to increase by nearly 20% since last year, with the average home in April selling for $450,600.

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US Market Closings:

  • Dow advanced 48.38 points or 0.15% to 31,928.62
  • S&P 500 declined 32.27 points or -0.81% to 3,941.48
  • Nasdaq declined 270.83 points or -2.35% to 11,264.45
  • Russell 2000 declined 27.94 points or -1.56% to 1,764.83

Canada Market Closings:

  • TSX Composite advanced 88.59 points or 0.44% to 20,286.2
  • TSX 60 advanced 6.41 points or 0.52% to 1,228.9

Brazil Market Closing:

  • Bovespa advanced 234.97 points or 0.21% to 110,580.79

ENERGY:

The oil markets had a mixed day today:

  • Crude Oil decreased 0.21 USD/BBL or -0.19% to 110.070
  • Brent increased 0.26 USD/BBL or 0.23% to 113.68
  • Natural gas increased 0.001 USD/MMBtu or 0.01% to 8.7450
  • Gasoline increased 0.0112 USD/GAL or 0.29% to 3.8089
  • Heating oil increased 0.0152 USD/GAL or 0.40% to 3.7840

The above data was collected around 14:54 EST on Tuesday

  • Top commodity gainers: Silver (1.39%) and Lumber (1.55%), Palm Oil (3.34%), Oat (7.15%)
  • Top commodity losers: Corn (-2.07%), Aluminum (-2.17%), Steel (-3.99%) and Wheat (-2.98%)

The above data was collected around 14:56 EST on Tuesday.

BONDS:

Japan 0.232%(-0.3bp), US 2’s 2.48% (-0.148%), US 10’s 2.7596% (-10.09bps); US 30’s 2.97% (-0.095%), Bunds 0.959% (-6.1bp), France 1.4920% (-4.5bp), Italy 2.970% (-6bp), Turkey 23.47% (+42bp), Greece 3.628% (-10.3bp), Portugal 2.167% (-2bp); Spain 2.119% (-2.9bp) and UK Gilts 1.885% (-8.9bp).

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