Market Talk – August 10, 2022

Asia:

Data on Monday (August 8) showed that Japan posted a current account deficit for the first time in 5 months in June, as rising imports outpaced exports, underlining pressure on the economy from rising energy and raw materials prices. Government data showed that the world’s third-largest economy posted a current account deficit of 132.4 billion yen (1.4 billion US dollars) in June, up from 872 billion yen in the same month a year earlier. The data, which represented the first monthly deficit since January, was below the median forecast of $703.8 billion among economists in a Reuters poll. The current account surplus decreased for 4 consecutive fiscal years until March 2022.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 fell 180.63 points or -0.65% to 27,819.33
  • Shanghai Index fell 17.41 points, or -0.54%, to 3,230.02 points
  • Hang Seng fell 392.60 points, or -1.96%, to 19,610.84 points
  • ASX 200 down 37.10 points, or -0.53%, to 6,992.70
  • The Kospi fell 22.58 points, or -0.90%, to 2480.88 points
  • SENSEX fell 35.78 points or -0.06% to 58,817.29
  • Nifty50 rose 9.65 points or 0.06% to 17534.75

The major Asian currency markets had a mixed day today:

  • AUDUSD rose 0.01436 or 2.06% to 0.70995
  • NZDUSD rose 0.01386 or 2.20% to 0.64246
  • USDJPY fell 2.549 or -1.89% to 132.564
  • USDCNY fell 0.03705 or -0.55% to 6.71705

Precious metals:

Gold rose $5.60/ton an ounce. or 0.31% to 1799.68

Silver rose 0.265 dollars / ton. ounces or 1.29% to 20.769

Some economic news from last night:

China:

CPI (YoY) (July) increased from 2.5% to 2.7%

CPI (MoM) (July) increased from -0.2% to 0.5%

PPI (YoY) (July) down 6.1% to 4.2%

Japan:

Producer Price Index (YoY) (July) decreased from 9.4% to 8.6%

PPI (MoM) (July) down 0.9% to 0.4%

South Korea:

Unemployment rate (July) remained unchanged at 2.9%

Some economic news of the day:

India:

Increase the M3 money supply from 7.9% to 8.6%

Europe/Europe, Middle East and Africa:

On Thursday, the French parliament approved an anti-inflation easing package aimed at boosting citizens’ purchasing power and helping them deal with rising consumer prices and energy costs. The package was split into two bills. The first, designed specifically to combat inflation with a series of measures worth 20 billion euros, or about $20.4 billion, approved by both houses of parliament on Wednesday. The second additional spending law allocating €44 billion in new spending in 2022 was approved on Thursday after lawmakers from both houses approved a joint version. Eurostat said inflation in France rose to 6.8 percent in July, lower than nearly all other eurozone countries. The country, which has a strong tourism industry, also saw growth of 0.5 percent in the second quarter, topping analysts’ expectations.

Major European stock markets had a green day:

The CAC 40 Index rose 33.44 points, or 0.52%, to 6,523.44 points

The FTSE 100 rose 18.96 points, or 0.25%, to 7,507.11

The DAX 30 Index rose 165.96 points, or 1.23%, to 13,700.93

The major European currency markets had a mixed day today:

  • EURUSD rose 0.01109 or 1.09% to 1.03190
  • The British pound rose against the US dollar by 0.01676 or 1.39% to 1.22408
  • USDCHF fell 0.01242 or -1.30% to 0.94108

Some economic news from Europe today:

Germany:

German CPI (YoY) (July) fell from 7.6% to 7.5%

German CPI (MoM) (July) increased from 0.1% to 0.9%

German HICP (MoM) (July) increased from -0.1% to 0.8%

German HICP (YoY) (July) increased from 8.2% to 8.5%

Italia:

Italian CPI (MoM) (July) decreased from 1.2% to 0.4%

Italian CPI (YoY) (July) decreased from 8.0% to 7.9%

Italian Ex Tobacco CPI (MoM) (July) remains the same at 7.8%

Italian HICP (MoM) (July) decreased from 1.2% to -1.1%

Italian HICP (YoY) (July) fell from 8.5% to 8.4%

United States / America:

Inflation finally showed signs of slowing in July after the CPI came in at 8.5%. That’s a welcome sign compared to June’s 9.1% reading, mainly due to a 4.6% drop in energy costs. However, shelter (+0.5%) and food (1.1%) continued to rise. Core CPI rose 5.9% YoY and 0.4% MoM.

Food costs in the US are up 10.9% over the past 12 months. Food prices have not risen that fast since May 1979. Electricity is still 15.2% higher year on year, while the energy index is up 32.9% year over year. One-third of the consumer price index consists of shelter costs, which have risen 5.7% over the past 12 months. Although general inflation is declining, there is still a long way to go before prices stabilize.

US market closing:

  • The Dow Jones advanced 535.04 points, or 1.63%, to 33,309.45 points
  • The S&P 500 advances 87.65 points, or 2.13%, to 4210.12
  • Nasdaq advanced 360.88 points, or 2.89%, to 12854.81
  • Russell 2000 advanced 56.36 points or 2.95% to 1969.25 points

Canada market closing:

  • Composite TSX advances 307.64 points, or 1.57%, to 19885.94 points
  • TSX 60 advanced 18.48 points or 1.56% to 1200.24

Brazil market closing:

  • Bovespa advances 1584.71 points or 1.46% to 11,0235.76

energy:

Oil markets had a green day today:

l Crude Oil rose $0.9/BBL or 0.99% to 91.400

Brent rose $0.789 / BBL, or 0.82%, to 97.099

Natural gas rose 0.1963 USD/MMBtu or 2.51% to 8.0293

Gasoline rose $0.0939/gallon, or 3.17%, to 3.0541

Heating oil rose $0.0959/gallon or 2.88% to 3.4297

The above data was collected around 12:57 a.m. EDT on Wednesday

The biggest gainers in commodities: wood (8.86%), gasoline (3.17%), coffee (3.67%), cotton (2.98%)

The biggest losers in commodities: rubber (-1.36%), milk (-0.55%), bitumen (-1.15%) and oats (-0.52%).

The above data was collected at around 13:07 EST on Wednesday.

Bonds:

Japan 0.189% (+2.4 basis points), US 2 3.16% (-0.124%), US 10’s 2.7626% (-3.44 basis points); United States 30 3.03% (+0.027%), the Bund 0.8840% (-3.9 basis points), France 1.4510% (-2.7 basis points), Italy 2.9940% (-6.1 basis points), Turkey 16.07% (-12 basis points) , Greece 3.197% (-2.3 basis points), Portugal 1.9390% (-1.6 basis points); Spain 2.02% (-1 basis points) and British bonds 1.9520% (-1.9 basis points).

« Market Talk – August 9, 2022

Related Posts

Leave a Reply

Your email address will not be published.