Market Talk – May 27, 2022

ASIA:

The Indian government is likely to stick to its fiscal deficit target as specified in the budget, and there may not necessarily be a need for increased government borrowing just yet, governor Shaktikanta Das said in an interview on Monday. Experts said the moves would likely increase fiscal concerns and raise doubts about the government meeting its deficit target of 6.4% of GDP for 2022-23. Das said the fiscal and monetary authorities have entered into another phase of coordinated action to check inflation. The Indian government is considering spending an additional 2 trillion rupees ($26 billion) in the 2022/23 fiscal year to cushion consumers from rising prices and fight multi-year high inflation, Reuters.

The major Asian stock markets had a green day today:

  • NIKKEI 225 increased 176.84 points or 0.66% to 26,781.68
  • Shanghai increased 7.13 points or 0.23% to 3,130.24
  • Hang Seng increased 581.16 points or 2.89% to 20,697.36
  • ASX 200 increased 76.80 points or 1.08% to 7,182.70
  • Kospi increased 25.60 points or 0.98% to 2,638.05
  • SENSEX increased 632.13 points or 1.17% to 54,884.66
  • Nifty50 increased 182.30 points or 1.13% to 16,352.45

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00476 or 0.67% to 0.71470
  • NZDUSD increased 0.00563 or 0.87% to 0.65276
  • USDJPY increased 0.058 or 0.05% to 127.099
  • USDCNY decreased 0.04322 or -0.64% to 6.72416
Related:  Market Talk - June 27, 2022

Precious Metals:

  • Gold increased 3.42 USD/t oz. or 0.18% to 1,853.44
  • Silver increased 0.080 USD/t. oz or 0.36% to 22.070

Some economic news from last night:

China:

Chinese Industrial profit (YoY) (Apr) decreased from 12.20% to -8.60%

Chinese Industrial profit YTD (Apr) decreased from 8.5% to 3.5%

Japan:

Tokyo Core CPI (YoY) (May) remain the same at 1.9%

Tokyo CPI (YoY) (May) decreased from 2.5% to 2.4%

CPI Tokyo Ex Food and Energy (MoM) (May) decreased from 0.4% to 0.1%

Australia:

Retail Sales (MoM) (Apr) decreased from 1.6% to 0.9%

Some economic news from today

India:

FX Reserves, USD increased from 593.28B to 597.51B

EUROPE/EMEA:

Russia’s National Settlement Depository (NSD) on Friday successfully paid coupons in foreign currency on two Eurobonds in a move that could mean Russia may have again averted a default. Russia is on the cusp of a unique kind of debt crisis which investors say would be a first time a major emerging market economy is pushed into a bond default by geopolitics, rather than empty coffers. The NSD said it paid foreign currency in coupon payouts on Eurobonds maturing in 2026 and 2036, both of which were due on May 27.

The major Europe stock markets had a green day:

  • CAC 40 increased 105.17 points or 1.64% to 6,515.75
  • FTSE 100 increased 20.54 points or 0.27% to 7,585.46
  • DAX 30 increased 230.90 points or 1.62% to 14,462.19
Related:  Market Talk - July 21, 2022

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.00133 or -0.12% to 1.07197
  • GBPUSD increased 0.00001 or 0.00% to 1.26171
  • USDCHF decreased 0.00103 or -0.11% to 0.95831

Some economic news from Europe today:

Italy:

Italian Trade Balance Non-EU (Apr) decreased from -0.51B to -2.29B

Spain:

Spanish Retail Sales (YoY) (Apr) increased from -4.1% to 1.5%

Euro Zone:

M3 Money Supply (YoY) (Apr) decreased from 6.3% to 6.0%

Loans to Non Financial Corporations (Apr) increased from 4.2% to 5.2%

Private Sector Loans (YoY) remain the same at 4.5%

US/AMERICAS:

The core personal consumption expenditures price index, the Fed’s main tool for examining inflation, rose 4.9% this April on an annual basis. The report from the Commerce Department comes as welcome news as the figure is in line with expectations and shows a slowing pace of inflation from March’s 5.4% reading. Including food and energy, headline PCE rose 6.3% in April YoY, marking a deceleration of 0.3% from the month prior. The PCE gauge is normally lower than the CPI index used by the Bureau of Labor and Statistics which reported headline CPI at 8.3% for last month.

Related:  Market Talk - August 5, 2022

US Market Closings:

  • Dow advanced 576.36 points or 1.77% to 33,213.55
  • S&P 500 advanced 100.43 points or 2.48% to 4,158.27
  • Nasdaq advanced 390.48 points or 3.33% to 12,131.13
  • Russell 2000 advanced 49.62 points or 2.7% to 1,887.86

Canada Market Closings:

  • TSX Composite advanced 216.4 points or 1.05% to 20,748.58
  • TSX 60 advanced 14.12 points or 1.14% to 1,255.4

Brazil Market Closing:

  • Bovespa advanced 51.8 points or 0.05% to 111,941.68

ENERGY:

The oil markets had a mixed day today:

  • Crude Oil increased 0.77 USD/BBL or 0.67% to 114.850
  • Brent increased 1.74 USD/BBL or 1.48% to 119.14
  • Natural gas decreased 0.221 USD/MMBtu or -2.48% to 8.6740
  • Gasoline increased 0.1208 USD/GAL or 3.12% to 3.9982
  • Heating oil increased 0.0194 USD/GAL or 0.49% to 3.9874

The above data was collected around 14:10 EST on Friday

  • Top commodity gainers: Gasoline (3.12%), Oat (2.26%), Bitumen (2.72%) and Zinc (3.24%)
  • Top commodity losers: Lithium (-0.86%), Palm Oil (-2.77%), Orange Juice (-1.66%) and Natural Gas (-2.48%)

The above data was collected around 14:21 EST on Friday.

BONDS:

Japan 0.228%(-0.7bp), US 2’s 2.50% (+0.018%), US 10’s 2.7468% (+0.52bps); US 30’s 2.97% (-0.004%), Bunds 0.976% (-2.3bp), France 1.4940% (-1.9bp), Italy 2.894% (-0.8bp), Turkey 22.38% (-40bp), Greece 3.506% (-3.1bp), Portugal 2.103% (-2bp); Spain 2.088% (+2.7bp) and UK Gilts 1.9270% (-4.1bp).

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