Market Talk – August 2, 2022

Asia:

A special survey showed that factory activity in India grew at the fastest pace in eight months in July, driven by strong growth in new orders and production as demand continued to improve on the back of easing price pressures. Survey results suggest that India’s economy has remained resilient, at least for now, despite fears of faster interest rate hikes, massive capital outflows, a weak rupee and a rapid global economic slowdown. The Manufacturing Purchasing Managers’ Index (INPMI = ECI), compiled by S&P Global, jumped to 56.4 in July from 53.9 in June, remaining above the 50 mark that separates growth from contraction for a 13th month. The Reserve Bank of India, which has already raised its key interest rate by a cumulative 90 basis points since early May, is expected to raise it again this week.

The International Monetary Fund has lowered its forecast for Singapore’s economic growth, in line with its recent warning that it will lower its estimate for the global economy later this month. The International Monetary Fund said Singapore’s economy will grow by 3.7 percent this year, in a country report released on Friday (July 22) after consultations with local officials. The pace of growth will be slower this year compared to a 7.6 percent increase in 2021 as trade-related sectors may decline due to supply constraints, while recovery in the hardest-hit sectors – tourism, aviation, consumer goods and construction – has just begun, the IMF said. However, the International Monetary Fund kept its general inflation forecast for Singapore at 4.8 percent, which includes all goods and services.

The major Asian stock markets had a mixed day today:

  • The NIKKEI 225 Index fell 398.62 points, or -1.42%, to 27,594.73 points.
  • The Shanghai Index fell 73.69 points, or -2.26%, to 3,186.27 points
  • Hang Seng fell 476.63 points, or -2.36%, to 19689.21
  • The ASX 200 rose 5.10 points, or 0.07%, to 6,998.10
  • The Kospi Index fell 12.63 points, or -0.52%, to 2,439.62 points
  • SENSEX stock increased 20.86 points, or 0.04%, to 58,136.36 points
  • Nifty50 rose 5.40 points or 0.03% to 17345.45

The major Asian currency markets had a mixed day today:

  • AUDUSD fell 0.00944 or -1.34% to 0.69314
  • NZDUSD fell 0.0065 or -1.03% to 0.62660
  • USDJPY rose 1.360 or 1.03% to 132.903
  • USDCNY fell 0.02295 or -0.34% to 6.76135

Precious metals:

l Gold decreased by 4.74 USD / ton per ounce. or -0.27% to 1,765.21

Silver price decreased by 0.303 USD/ton. Ounces or -1.49% to 20.06

Some economic news from last night:

Japan:

Monetary base decreased (YoY) from 3.9% to 2.8%

South Korea:

CPI (YoY) (July) increased from 6.0% to 6.3%

CPI (MoM) (Jul) down 0.6% to 0.5%

Australia:

Building approvals (MoM) (June) decreased from 11.2% to -0.7%

Home loans decreased from 2.1% to -3.3%

Investment housing financing decreased from 0.9% to -6.3%

Approvals for private homes (June) increased from -2.1% to 1.2%

Some economic news of the day:

India:

Exports (in USD) (Jul) remained the same at 35.24 billion

Imports (in USD) (July) remained the same at 66.26 billion

Trade Balance (July) decreased from 31.02 billion to -31.02 billion

Hong Kong:

Retail Sales Increased (YoY) (June) from -1.7% to -1.2%

Australia:

The RBA rate decision (August) increased from 1.35% to 1.85%.

Commodity prices decreased (YoY) from 29.2% to 14.1%

New Zealand:

GlobalDairyTrade price index remained unchanged at -5.0%

Europe/Europe, Middle East and Africa:

The Bank of England is expected this week to make its biggest rate hike in 27 years, ditching some of the 895 billion pounds ($1.1 trillion) stimulus it has provided over the past decade. The move will accelerate a historic tightening of monetary policy to calm the worst rise in inflation in 40 years. Governor Andrew Bailey and colleagues warned that prices could rise 11% this year, well above his 2% target. The investor sees a 70% chance that the Bank of England will rise in the benchmark 0.5 point to 1.75%. This is the highest since the 2009 global financial crisis. Most economists see a move of that magnitude again this week, but some economists say Morgan Stanley and NatWest Markets have seen a 4 point drop, citing increased risks of a recession. It is said to be of high quality.

Major European stock markets had a negative day:

The CAC 40 fell 27.06 points, or -0.42%, to 6,409.80

The FTSE 100 fell 4.31 points, or -0.06%, to 7,409.11

The DAX 30 Index fell 30.43 points, or -0.23%, to 13,449.20

The major European currency markets had a mixed day today:

  • EURUSD fell 0.00834 or -0.81% to 1.01803
  • GBPUSD fell 0.00726 or -0.59% to 1.21811
  • The US dollar rose against the Swiss franc 0.00687 or 0.72% to 0.95637

Some economic news from Europe today:

United kingdom:

Nationwide Producer Price Index (MoM) (July) decreased from 0.2% to 0.1%

HPI Rates Nationwide (YoY) (July) Increased 10.7% to 11.0%

Swiss:

SECO Consumer Climate (Q3) decreased from -18 to -28

procure.ch PMI (July) fell from 59.1 to 58.0

Spain:

The Spanish unemployment rate increased from -42.4 thousand to 3.2 thousand

Spanish consumer confidence fell from 65.8 to 55.5

United States / America:

A new study finds that retailers in America are expanding despite inflation and recession fears. Simon Property Group, America’s largest owner of malls, reported 93.9% occupancy at its malls and outlets in June, up from last year’s reading of 01.8%. The group said places like Florida and Los Vegas are fueling a boom as tourists are eager to spend. US retailers opened 4,432 stores in 2022, compared to 1,954 closed. The retail industry only managed to add a network of 68 new stores last year, which makes this a huge improvement.

The ‘Big Resignation’ may still be underway in the US as 4.2 million people quit their jobs in June. About 10.7 million new jobs became available in June, down from 11.3 million in the previous month, but representing a 50% increase year-over-year. There are currently 1.8 jobs for every unemployed American. People strive for better jobs and use the shortage of workers to their advantage. The number of new hires reached 6.4 million, which is equal to the number of freelancers. The unemployment rate in June held steady at 3.6%.

US market closing:

  • The Dow fell 402.23 points, or -1.23%, to 32,396.17
  • The S&P 500 fell 27.44 points, or -0.67%, to 4,091.19
  • The Nasdaq fell 20.22 points, or -0.16%, to 12,348.76 points
  • Contact 2000

Canada market closing:

Brazil market closing:

energy:

Oil markets had a mixed day today:

l Crude Oil rose 0.55 USD/BBL or 0.59% to 94.501

Brent crude rose 0.49 USD/BBL or 0.49% to 100.320

l Natural gas decreased $0.526/MMBtu or -6.35% to 7.7664

Gasoline rose $0.0623/gallon, or 2.08%, to 3.0588

l Heating oil decreased $0.067/gallon or -1.95% to 3.3799

The above data was collected around 14:26 EST on Tuesday

Top Gainers in Commodities: Gasoline (2.08%), Potato (2.70%), Orange Juice (1.23%) and Rhodium (1.74%)

The biggest losers in commodities: palladium (-6.07%), canola (-5.75%), oats (-6.75%) and natural gas (-6.35%).

The above data was collected at approximately 14:33 EST on Tuesday.

Bonds:

Japan 0.175% (-1 basis point), US 2’s 3.07% (+0.164%), US 10’s 2.7392% (+13.42 basis point); US 30% 2.99 (+0.064%), Bund 0.7820% (+2.1 bps), France 1.3790% (+3.3 bps), Italy 3.031% (+ 4.5 bps), Turkey 17.00% (+ 0 bps) , Greece 2.957% (+3.9 basis points), Portugal 1.887% (+10 basis points); Spain 1.934% (+7.7 basis points) and the United Kingdom 1.8660% (+5.8 basis points).

« Market Talk – August 1, 2022

Related Posts

Leave a Reply

Your email address will not be published.