Market Talk – August 1, 2022

Asia:

They added that China’s manufacturing PMI fell to 50.4 in July from 51.7 the previous month, according to media reports on August 1. This was lower than market analysts’ expectations of 51.5 for July, but higher than the 50-point index that separates growth from decline. . Market analysts said the decline was due to weak economic activity across industries in China and remained cautious about the recovery in Chinese demand.

Government data showed, Friday, that India’s federal fiscal deficit widened less-than-expected to 3.5 trillion rupees ($44.17 billion) in the three months to June, helped by lower spending on subsidies and increased tax collection. Tax collections rose, in part due to higher inflation, which helped the government collect more Goods and Services Tax (GST), as well as increase corporate tax revenue from improved economic activity. In May, the government cut taxes on gasoline, diesel and cooking gas to provide relief to consumers after a sharp rise in global oil prices.

India launched its first international bullion exchange on Friday as the world’s second-largest consumer of precious metals seeks transparency in the precious metals market. The India International Bullion Exchange (IIBX), headquartered in Gujarat International Finance Tec-City or GIFT City in the western state of Gujarat, can lead to the benchmark gold price in India and facilitate trade for small bullion dealers and jewelers. Gold is strictly regulated in India and currently only designated banks and agencies approved by the Central Bank can import and sell gold to dealers and jewelers. The Multi Commodity Exchange (MCX) and the National Commodity and Derivatives Exchange (NCDEX) offer gold futures contracts in India, but there was no actual exchange to buy gold.

Major Asian stock markets had a green day today:

  • The NIKKEI 225 increased by 191.71 points, or 0.69%, to 27,993.35 points
  • The Shanghai index rose 6.72 points, or 0.21%, to 3,259.96 points
  • Hang Seng rose 9.33 points, or 0.05%, to 20165.84 points
  • The ASX 200 rose 47.80 points, or 0.69%, to 6,993.00
  • The Kospi added 0.75 points, or 0.03 percent, to 2452.25 points
  • The SENSEX Index rose 545.25 points, or 0.95%, to 58,115.50 points
  • Nifty50 stock rose 181.80 points, or 1.06%, to 17,340.05 points

The major Asian currency markets had a mixed day today:

  • AUDUSD rose 0.00533 or 0.76% to 0.70226
  • NZDUSD rose 0.00422 or 0.67% to 0.63302
  • USDJPY fell 1.272 or -0.95% to 131.942
  • USDCNY rose 0.03014 or 0.45% to 6.78044

Precious metals:

Gold rose $3.41/ton ounce. or 0.19% to 1765.51

Silver price decreased by 0.018 USD/ton. ounces or -0.09% to 20.275

Some economic news from last night:

China:

Caixin Manufacturing PMI (July) fell from 51.7 to 50.4

Japan:

Manufacturing PMI (July) fell from 52.7 to 52.1

South Korea:

Exports (Y/Y) (July) increased from 5.2% to 9.4%

Imports (YoY) (July) increased from 19.4% to 21.8%

Trade Balance (July) decreased from -2.58 billion to -4.67 billion

The Nikkei Manufacturing PMI (July) fell from 51.3 to 49.8

Australia:

AIG Manufacturing Index (July) fell from 54.0 to 52.5

Manufacturing PMI rose from 55.7 to 56.2

MI (MoM) increased from 0.3% to 1.2%

ANZ Job Ads (MoM) decreased from 0.4% to -1.1%

South Korea:

Building Approvals (MoM) (June) decreased from -0.5% to -3.0%

Some economic news of the day:

India:

The Nikkei S&P Global Manufacturing Index (July) increased from 53.9 to 56.4

Hong Kong:

GDP (YoY) (Q2) increased from -3.9% to -1.4%

GDP (Quarterly) (Q2) increased from -2.9% to 0.9%

Europe/Europe, Middle East and Africa:

British business leaders are scaling back investment plans as high prices, trade difficulties over Brexit and political uncertainty make them pessimistic about the economic outlook. Many companies are now planning to cut investment to increase it, according to a survey by the Institute of Directors for Business Leaders. This is the weakest reading since October 2020 as nervous companies cut spending. The IoD Economic Sentiment Index, which measures business leaders’ view of the UK’s economic outlook, remained very low at -54 in July, up only slightly from -60 June. Sixty-nine per cent of heads were either extremely pessimistic or pessimistic about the UK economy, while only 15 per cent were optimistic about the outlook.

German economic growth stalled in the second quarter of this year, disappointing expectations for a modest expansion, according to data from the German Statistics Office on Friday. After growing 0.8 percent in the first quarter of the year, Europe’s largest economy stagnated. Meanwhile, the Spanish economy grew 1.1% in the quarter, the Spanish Statistics Office said this morning. The second quarter growth estimates for the broader Eurozone are due to be published at 11:00 CET.

Major European stock markets had a negative day:

The CAC 40 fell 11.64 points, or -0.18%, to 6436.86

The FTSE 100 fell 10.01 points, or -0.13%, to 7,413.42

The DAX 30 Index fell 4.42 points or -0.03% to 13,479.63

The major European currency markets had a mixed day today:

  • EURUSD rose 0.00254 or 0.25% to 1.02519
  • GBPUSD 0.00891 or 0.73% rose to 1.22499
  • USDCHF fell 0.00027 or -0.03% to 0.95113

Some economic news from Europe today:

Germany:

German Retail Sales (YoY) (June) down 1.1% to -8.8%

German Retail Sales (MoM) (June) decreased from 1.2% to -1.6%

German Manufacturing PMI (July) fell from 52.0 to 49.3

Spain:

Spanish Manufacturing PMI (July) fell from 52.6 to 48.7

Italia:

Italian Manufacturing PMI (July) fell from 50.9 to 48.5

Italian monthly unemployment rate (June) decreased from 8.2% to 8.1%

France:

French Manufacturing PMI (July) fell from 49.6 to 49.5

United kingdom:

Manufacturing PMI (July) fell from 52.8 to 52.1

Euro-zone :

Manufacturing PMI (July) fell from 52.1 to 49.8

Unemployment rate (June) remains the same at 6.6%

United States / America:

The US housing market is starting to cool down, but it’s still inflated. The Black Knight mortgage program found that the annual rate of rates fell from 17.3% to 19.3%, recording a decrease of 2%. Black Knight found that the higher number of available homes helped lower prices slightly with supply increasing by 22% over the past two months. However, inventory remains depleted, with 54% lower availability compared to 2019.

The Canadian economy remained stagnant in May after posting a slight 0.3% gain in April. Statistics Canada said construction and manufacturing suffered the biggest losses, and noted the Ontario labor strike in May caused project delays. This is the first time the manufacturing has contracted in the past eight months. The transportation sector saw solid gains after rising 14.1%, with travel restrictions eased slightly. The agency now expects second-quarter GDP to come in at 4.6%.

US market closing:

  • The Dow fell 46.73 points, or -0.14%, to 327984 points
  • The S&P 500 fell 11.66 points, or -0.28%, to 4,118.63
  • The Nasdaq fell 21.71 points, or -0.18%, to 12,368.98 points
  • Russell 2000 fell 1.92 points or -0.1% to 1,883.31

Canada market closing:

  • TSX Composite advances 236.21 points, or 1.21%, to 19692.92
  • TSX 60 advanced 12.62 points, or 1.07%, to 1,187.97

Brazil market closing:

  • Bovespa fell 939.61 points or -0.91% to 102,225.08

Nevada, h

energy:

Oil markets had a mixed day today:

  • Crude Oil is down $4.83/BBL or -4.90% to 93.870
  • Brent fell $4.03/BBL or -3.88% to 100.128
  • Natural gas rose $0.03/MMBtu or 0.36% to 8.2757
  • Gasoline fell $0.1172/gallon or -3.76% to 2.9979
  • Heating oil fell $0.1117/gallon or -3.15% to 3.4353

The above data was collected at around 14:39 EST on Monday

Top gainers in commodities: wood (1.69%), potatoes (7.56%), palladium (3.19%) and zinc (1.51%)

The biggest losers in commodities: palm oil (-5.34%), crude oil (-4.90%), Brent (-3.88%) and gasoline (-3.76%).

The above data was collected at around 14:45 EST on Monday.

Bonds:

Japan 0.185% (+1 basis point), US$2 2.92% (+0.020%), US$10 2.6109% (-3.11 basis point); US 30 2.93% (-0.044%), Bond 0.7610% (-6.4 basis points), France 1.3460% (-3.9 basis points), Italy 2.986% (-16.2 basis points), Turkey 17.00% (-15 basis points) , Greece 2.918% (- 7.8 basis points), Portugal 1.877% (-7 basis points); Spain 1.895% (-3.1 basis points) and British bonds 1.8080% (-5.4 basis points).

« Market Talk – 29 July 2022

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