Market Talk – September 29, 2022

ASIA:

Singapore is now the seventh most innovative economy in the world, up one spot from its ranking in 2021. The rankings are in accordance with the Global Innovation Index 2022, a report released by the World Intellectual Property Organization (Wipo) and non-profit research firm Portulans Institute on Thursday. The report ranks 132 economies according to their capacity for and success in innovation. Switzerland has remained the top economy globally this year. The rest of the top five are, in descending order, the United States, Sweden, Britain and the Netherlands.

Russia’s central bank said on Thursday it had extended restrictions on transfers of money abroad until March 31. It said that Russian nationals as well as citizens of “friendly” countries would still be able to transfer up to $1 million to their foreign accounts a month and no more than $10,000 via money transfer systems. For individuals from “unfriendly” countries who are not working in Russia, as well as for legal entities from such states, a prohibition on money transfers abroad stays in place.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 248.07 points or 0.95% to 26,422.05
  • Shanghai decreased 3.86 points or -0.13% to 3,041.20
  • Hang Seng decreased 85.01 points or -0.49% to 17.165.87
  • Kospi increased 1.64 points or 0.08% to 2,170.93
  • ASX 200 increased 93.00 points or 1.44% to 6,555.00
  • SENSEX decreased 188.32 points or -0.33% to 56,409.96
  • Nifty50 decreased 40.50 points or -0.24% to 16,818.10

The major Asian currency markets had a negative day today:

  • AUDUSD decreased 0.00176 or -0.27% to 0.64873
  • NZDUSD decreased 0.00235 or -0.41% to 0.57045
  • USDJPY decreased 0.095 or -0.07% to 144.360
  • USDCNY decreased 0.0648 or -0.90% to 7.09660
Related:  Market Talk - July 21, 2022

Precious Metals:

  • Gold increased 2.01 USD/t oz. or 0.12% to 1,661.45
  • Silver decreased 0.146 USD/t. oz or -0.77% to 18.745

Some economic news from last night:

Japan:

Foreign Bonds Buying decreased from -140.7B to -1,206.1B

Foreign Investments in Japanese Stocks increased from -609.7B to -310.6B

Foreign Bonds Buying increased from -1,206.1B to -1,102.5B

Foreign Investments in Japanese Stocks decreased from -310.6B to -1,178.9B

South Korea:

Manufacturing BSI Index (Oct) decreased from 82 to 73

New Zealand:

ANZ Business Confidence (Sep) increased from -47.8 to -36.7

NBNZ Own Activity (Sep) increased from -4.0% to -1.8%

Some economic news from today:

India:

Foreign Debt (USD) (Q2) decreased from 620.7B to 617.1B

Balance of Payments (USD) (Q2) increased from -16.000B to 4.600B

Current Account % of GDP (QoQ) (Q2) decreased from -1.50% to -2.80%

Current Account (USD) (Q2) decreased from -13.40B to -23.90B

Trade Balance (USD) (Q2) decreased from -54.500B to -68.600B

EUROPE/EMEA:

Loosening capital rules for banks would do little to ease a cash crunch among energy companies due to high gas prices, and risked making lenders less resilient to shocks, the European Union’s banking watchdog said on Thursday. The European Banking Authority was asked by the bloc’s executive European Commission for its views on current levels of volatility and cash stumped up by energy firms in derivatives markets in case contracts turn sour, and how the banking sector could help. “The EBA view is that the prudential framework is built for normal, as well as more challenging times such as the current situation and overall is working as designed.” There are no indications that capital rules are materially limiting the ability of banks to support energy firms, it added.

Related:  Market Talk - September 2, 2022

The major Europe stock markets had a negative day:

  • CAC 40 decreased 88.14 points or -1.53% to 5,676.87
  • FTSE 100 decreased 123.80 points or -1.77% to 6,881.59
  • DAX 30 decreased 207.73 points or -1.71% to 11,975.55

The major Europe currency markets had a green day today:

  • EURUSD increased 0.00784 or 0.81% to 0.97888
  • GBPUSD increased 0.02367 or 2.18% to 1.10704
  • USDCHF increased 0.00273 or 0.28% to 0.97883

Some economic news from Europe today:

Germany:

German CPI (MoM) (Sep) increased from 0.3% to 1.9%

German CPI (YoY) (Sep) increased from 7.9% to 10.0%

German HICP (YoY) (Sep) increased from 8.8% to 10.9%

German HICP (MoM) (Sep) increased from 0.4% to 2.2%

Spain:

Spanish CPI (MoM) decreased from 0.3% to -0.6%

Spanish CPI (YoY) decreased from 10.5% to 9.0%

Spanish HICP (MoM) decreased from 0.3% to 0.0%

Spanish HICP (YoY) (Sep) decreased from 10.5% to 9.3%

Italy:

Italian PPI (MoM) (Aug) decreased from 5.0% to 2.8%

Italian PPI (YoY) (Aug) increased from 36.9 to 40.1%

Euro Zone:

Business and Consumer Survey (Sep) decreased from 97.3 to 93.7

Business Climate (Sep) decreased from decreased from 0.83 to 0.81

Consumer Confidence (Sep) remain the same at -28.8

Consumer Inflation Expectation (Sep) increased from 37.0 to 41.3

Selling Price Expectations (Sep) increased from 44.6 to 50.3

Services Sentiment (Sep) decreased from 8.1 to 4.9

Industrial Sentiment (Sep) decreased from 1.0 to -0.4

US/AMERICAS:

Initial jobless claims fell to a five-month low last week, according to the Labor Department. There were 193,000 new filings for the week ending on September 24, marking a 16,000 decrease from the week prior. This is the lowest level recorded since April 23, 2022, and the first time claims were under 200,000 since May of this year. Continuing claims, collected a week prior, declined 29,000 to 1.347 million.

Related:  Market Talk - April 21, 2022

The US Commerce Department released its personal consumption expenditure price index, which indicated a 7.3% YoY rise in Q2. The initial estimate was 7.1% but lower than the 7.5% advancement in Q1. Core PCE rose by 0.3 percentage points or 4.7%, which is still high but beneath the 5.6% recording for Q1.

US Market Closings:

  • Dow declined 458.13 points or -1.54% to 29,225.61
  • S&P 500 declined 78.57 points or -2.11% to 3,640.47
  • Nasdaq declined 314.13 points or -2.84% to 10,737.51
  • Russell 2000 declined 40.31 points or -2.35% to 1,674.93

Canada Market Closings:

  • TSX Composite declined 207.08 points or -1.11% to 18,441.84
  • TSX 60 declined 11.86 points or -1.05% to 1,118.8

Brazil Market Closing:

  • Bovespa declined 786.85 points or -0.73% to 107,664.35

ENERGY:

The oil markets had a mixed day today:

  • Crude Oil increased 0.65 USD/BBL or 0.79% to 82.800
  • Brent increased 0.069 USD/BBL or 0.08% to 89.389
  • Natural gas decreased 0.1833 USD/MMBtu or -2.64% to 6.7717
  • Gasoline decreased 0.0296 USD/GAL or -1.15% to 2.5483
  • Heating oil decreased 0.0002 USD/GAL or -0.01% to 3.4492

The above data was collected around 12:48 EST on Thursday

  • Top commodity gainers: Palm Oil (3.60%), Aluminum (4.28%), Zinc (3.33%) and Palladium (2.90%)
  • Top commodity losers: Coffee (-1.29%), Lumber (-4.44%), Natural Gas (-2.64%) and Cotton (-4.53%)

The above data was collected around 12:57 EST on Thursday.

BONDS:

Japan 0.25%(+0bp), US 2’s 4.20% (+0.105%), US 10’s 3.7594% (+5.24bps); US 30’s 3.72% (+0.034%), Bunds 2.209% (+5.4bp), France 2.824% (+6.7bp), Italy 4.662% (+0bp), Turkey 11.60% (-2p), Greece 4.913% (-2.5bp), Portugal 3.29% (+0bp); Spain 3.419% (+8.7bp) and UK Gilts 4.2140% (+20.7bp).

Original Article

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