Market Talk – September 16, 2022

ASIA:

China’s biggest banks cut their key deposit rates across the board for the first time since 2015, a move to help boost lending to support growth in the world’s second-largest economy. Seven major banks, including Bank of China Ltd., Industrial & Commercial Bank of China Ltd., Bank of Communications Co. and Agricultural Bank of China Ltd., on Thursday cut deposit rates on a range of products, including demand deposits, three-month and five-year deposits. At some lenders, rates on one-year deposits were cut by 10 basis points to 1.65%, according to the lenders’ websites. It is the first time since 2015 that banks have cut rates across the board. While earlier in April banks reduced interest rates on deposits, it was only for selected maturities and some deposit products.

The major Asian stock markets had a negative day today:

  • NIKKEI 225 decreased 308.26 points or -1.11% to 27,567.65
  • Shanghai decreased 73.52 points or -2.30% to 3,126.40
  • Hang Seng decreased 168.69 points or -0.89% to 18.761.69
  • Kospi decreased 19.05 points or -0.79% to 2,382.78
  • ASX 200 decreased 103.80 points or -1.52% to 6,739.10
  • SENSEX decreased 1.093.22 points or -1.82% to 58,840.79
  • Nifty50 decreased 346.55 points or -1.94% to 17,530.85

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.00044 or -0.07% to 0.66869
  • NZDUSD increased 0.00025 or 0.04% to 0.59685
  • USDJPY decreased 0.361 or -0.25% to 143.016
  • USDCNY increased 0.00681 or 0.10% to 7.01971

Precious Metals:

Gold increased 8.77 USD/t oz. or 0.53% to 1,672.51

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Silver increased 0.168 USD/t. oz or 0.87% to 19.328

Some economic news from last night:

China:

Fixed Asset Investment (YoY) (Aug) increased from 5.7% to 5.8%

Industrial Production (YoY) (Aug) increased from 3.8% to 4.2%

Chinese Industrial Production YTD (YoY) (Aug) increased from 3.5% to 3.6%

Chinese Unemployment Rate decreased from 5.4% to 5.3%

House Prices (YoY) (Aug) decreased from -0.9% to -1.3%

New Zealand:

RBNZ Offshore Holdings (Aug) decreased from 53.70% to 53.60%

Some economic news from today:

India:

FX Reserves, USD decreased from 553.11B to 550.87B

EUROPE/EMEA:

Germany’s economy will shrink next year as soaring energy costs caused by Russia’s gas cuts reduce disposable income and consumers cut back on spending, a leading think tank has said. The Ifo think-tank in Munich warned that the recent rise in electricity and gas prices is “wreaking havoc” on the German economy and will lead to a contraction in gross domestic product of 0.3 percent next year – a sharp deterioration from an estimate of 3.7. percentage growth in June. The Kiel Institute for the World Economy, another think tank, last week cut its forecast for German GDP next year by 4 percentage points to minus 0.7 percent, warning: “With high energy import prices, an economic avalanche is rolling in. towards Germany.” German inflation would average 9.3 percent next year from 8.1 percent this year, Ifo said, forecasting that consumer price growth would peak at 11 percent in the first quarter, a 70-year high.

The major Europe stock markets had a negative day:

  • CAC 40 decreased 80.54 points or -1.31% to 6,077.30
  • FTSE 100 decreased 45.39 points or -0.62% to 7,236.68
  • DAX 30 decreased 215.40 points or -1.66% to 12,741.26
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The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00192 or 0.19% to 1.00067
  • GBPUSD decreased 0.00558 or -0.49% to 1.13970
  • USDCHF increased 0.00374 or 0.39% to 0.96524

Some economic news from Europe today:

UK:

Core Retail Sales (MoM) (Aug) decreased from 0.4% to -1.6%

Core Retail Sales (YoY) (Aug) decreased from -3.1% to -5.0%

Retail Sales (MoM) (Aug) decreased from 0.4% to -1.6%

Retail Sales (YoY) (Aug) decreased from -3.2% to -5.4%

Italy:

Italian CPI (MoM) (Aug) remain the same at 0.8%

Euro Zone:

Core CPI (YoY) (Aug) remain the same at 4.3%

CPI (MoM) (Aug) increased from 0.1% to 0.6%

CPI (YoY) (Aug) remain the same at 9.1%

US/AMERICAS:

Retail sales in the US advanced 0.3% last month, as reported by the Census Bureau. Adjusted for inflation, this figure increased 0.1%. Retail sales for the year are up 9.1%. The auto sector led spending last month after advancing 2.8%, offsetting the 4.2% decrease at the gas pumps. Bar and restaurants also saw sales rise by 1.1% during the last month of summer.

The New York Fed’s Empire State Manufacturing Index declined to -1.5 in September, marking a major 30-point rise from August. Philadelphia’s Fed survey read -9.9, moving in the opposite direction after declining from 6.2 in August. New York reported that price indexes declined to 15.9 for prices paid and 9.1 for prices received, both indicating growth. Philadelphia saw a decline as prices paid fell 14 points, although prices received rose by 6.3 points.

Related:  Market Talk - June 2, 2022

US Market Closings:

  • Dow declined 139.4 points or -0.45% to 30,822.42
  • S&P 500 declined 28.02 points or -0.72% to 3,873.33
  • Nasdaq declined 103.95 points or -0.9% to 11,448.4
  • Russell 2000 declined 27.04 points or -1.48% to 1,798.19

Canada Market Closings:

  • TSX Composite declined 174.28 points or -0.89% to 19,385.88
  • TSX 60 declined 9.48 points or -0.8% to 1,172.78

Brazil Market Closing:

  • Bovespa declined 673.28 points or -0.61% to 109,280.37

ENERGY:

The oil markets had a mixed day today:

Crude Oil increased 0.16 USD/BBL or 0.19% to 85.260

Brent increased 0.356 USD/BBL or 0.39% to 91.196

Natural gas decreased 0.4322 USD/MMBtu or -5.19% to 7.8918

Gasoline decreased 0.0121 USD/GAL or -0.50% to 2.4166

Heating oil decreased 0.0429 USD/GAL or -1.34% to 3.1623

The above data was collected around 13:10 EST on Friday

Top commodity gainers: Silver (0.87%), Orange Juice (2.60%), Wheat (2.53%) and Copper (1.04%)

Top commodity losers: Methanol (-2.90%), Natural Gas (-5.19%), Bitumen (-5.59%) and Cotton (-2.65%)

The above data was collected around 13:30 EST on Friday

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BONDS:

Japan 0.255%(-0.1bp), US 2’s 3.87% (-0.004%), US 10’s 3.4456% (-1.34bps); US 30’s 3.52% (+0.038%), Bunds 1.765% (+2.4bp), France 2.292% (-0.6bp), Italy 4.025% (-0.5bp), Turkey 11.17% (-3bp), Greece 4.290% (+6.6bp), Portugal 2.822% (+2.5bp); Spain 2.920% (+1.5bp) and UK Gilts 3.1390% (-2.7bp).

Original Article

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