Market Talk – August 31, 2022

Asia:

Data released on Wednesday showed that India’s economy grew 13.5% year-on-year in the April-June quarter, its fastest annual pace in a year, although it is expected to lose momentum in the coming quarters as higher interest rates cool activity. Economic. Growth in the June quarter, driven by manufacturing and services, such as accommodation and travel, and the recovery from pandemic restrictions, came in less than the 15.2% economists had forecast in a Reuters poll, but well above the 4.1% in the previous quarter. Consumer spending, which accounts for nearly 55% of economic activity in India, has been hit hard by rising food and fuel prices, although monthly inflation has moderated in the past three months.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 fell 104.05 points or -0.37% to 28,091.53
  • Shanghai Index fell 25.08 points, or -0.78%, to 3,202.14 points
  • Hang Seng Index rose 5.36 points, or 0.03%, to 19954.39 points
  • The Kospi added 21.12 points, or 0.86%, to 2472.05 points
  • ASX 200 fell 11.50 points, or -0.16%, to 6,986.80
  • SENSEX CLOSED
  • Nifty50 closed

The major Asian currency markets had a mixed day today:

  • AUDUSD rose 0.00140 or 0.20% to 0.68645
  • NZDUSD rose 0.00120 or 0.19% to 0.61388
  • USDJPY fell 0.149 or -0.11% to 138.641
  • USDCNY fell 0.02700 or -0.39% to 6.89555

Precious metals:

Gold is down $2.17/ton per ounce. or -0.13% to 1,721.38

Silver price decreased by 0.362 USD/ton. ounces or -1.96% to 18.128

Some economic news from last night:

China:

China Composite PMI (August) fell from 52.5 to 51.7

Manufacturing PMI (August) increased from 49.0 to 49.4

Non-manufacturing PMI (August) fell from 53.8 to 52.6

Japan:

Industrial Production (MoM) (July) down 8.9% to 1.0%

Industrial production forecast up 1 million months ago (MoM) (August) from 3.8% to 5.5%

Industrial production forecast down 2 months ago (MoM) (September) from 6.0% to 0.8%

Major retailers sales increased from -1.3% to 0.8%

Retail Sales (YoY) (July) increased from 1.5% to 2.4%

South Korea:

Industrial Production (MoM) (July) down 1.7% to -1.3%

Industrial Production (YoY) (July) increased from 1.3% to 1.5%

Retail Sales (MoM) increased from -1.0% to -0.3%

Australia:

Construction Work Completed (Quarterly) (Q2) decreased from -0.3% to -3.8%

Home Loans (July) Down 0.6% to 0.5%

Private Sector Credit (MoM) decreased from 0.9% to 0.7%

New Zealand:

Business confidence in ANZ (August) increased from -56.7 to -47.8

Activity on the Bank of New Zealand (August) increased from -8.7% to -4.0%

Building approvals (MoM) (July) increased from -2.3% to 5.0%

Some economic news of the day:

Japan:

Building Orders (YoY) (July) decreased from 15.5% to 2.8%

Household Confidence (August) increased from 30.2 to 32.5

Housing Start (YoY) (July) decreased from -2.2% to -5.4%

India:

Federal fiscal deficit (July) decreased from 3,518.71 billion to 3,408.31 billion

Quarterly (YoY) GDP (Q1) increased from 4.1% to 13.5%

Infrastructure Output (YoY) (July) decreased from 13.2% to 4.5%

Hong Kong:

M3 money supply (July) increased from -2.8% to 1.2%

Retail Sales (YoY) (July) increased from -1.2% to 4.1%

Europe/Europe, Middle East and Africa:

Official data showed on Tuesday that the UK unemployment rate rose 0.1 percentage point to 3.8% in the second quarter of the year, in line with market expectations. The number of job vacancies decreased by 19,800 to 1.2 million between May and July compared to the previous quarter. This was the first quarterly decline since June and August 2020. Meanwhile, the employment rate for people aged 16-64 fell 0.1 percentage point in the quarter to 75.5% and is still below pre-coronavirus levels. The number of employed people rose by 160,000 in the April-June period, missing market expectations for a rise of 256 thousand.

Major European stock markets had a negative day:

The CAC 40 index fell 85.12 points, or -1.37%, to 6,125.10 points

The FTSE 100 fell 77.48 points, or -1.05%, to 7,284.15

The DAX 30 Index fell 126.18 points or -0.97% to 12,834.96 points

The major European currency markets had a mixed day today:

  • EURUSD rose 0.00528 or 0.53% to 1.00648
  • GBPUSD fell 0.00155 or -0.13% to 1.16395
  • USDCHF rose 0.00056 or 0.06% to 0.97446

Some economic news from Europe today:

Italia:

Italian CPI (MoM) (August) increased from 0.4% to 0.8%

Italian CPI (YoY) (August) increased from 7.9% to 8.4%

Italian HICP (MoM) (August) increased from -1.1% to 0.8%

Italian HICP (YoY) (August) increased from 8.4% to 9.0%

Italian PPI (YoY) (July) increased from 34.1% to 36.9%

Italian PPI (MoM) (July) increased from 1.0% to 5.0%

Germany:

German Import Price Index (July) increased from 1.0% to 1.4%.

German Import Price Index (YoY) (July) decreased from 29.9% to 28.9%

German unemployment rate (August) decreased from 45K to 28K

German unemployment rate (August) increased from 5.4% to 5.5%

German unemployment rate (August) increased from 2.469 million to 2.497 million

German unemployment rate (August) increased from 2.470 million to 2.550 million

France:

French Consumer Spending (MoM) (July) decreased from 0.1% to -0.8%

French CPI (MoM) increased from 0.3% to 0.4%

French CPI (YoY) decreased from 6.1% to 5.8%

French GDP (Quarterly) (Q2) Remains Unchanged at 0.5%

French HICP (MoM) rises from 0.3% to 0.4%

French HICP (YoY) decreased from 6.8% to 6.5%

French PPI (MoM) (July) increased from 1.3% to 1.6%

Euro-zone:

Core CPI (MoM) increased from 0.1% to 0.5%

Core CPI (YoY) increased from 4.0% to 4.3%

CPI (YoY) (August) increased from 8.9% to 9.1%

CPI (MoM) increased from 0.1% to 0.5%

CPI (August) increased from 117.14 to 117.78

HICP Excluding Energy and Food (YoY) increased (August) from 5.1% to 5.5%

The HICP index, excluding energy and food, increased from 0.2% to 0.6%.

United States / America:

The ADP National Employment Report showed a slowdown in the US workforce, which may be a good thing. Companies created 132,000 new jobs just last month, far from the 288,000 advances many had been expecting. The August number is also a marked slowdown from July when the economy added 270,000 sites, the lowest reading since May’s reading of 128,000. The Federal Reserve has repeatedly said that lower employment is necessary for inflation to fade. The unpublished Labor Department report will be what central banks and markets rely on as a more accurate indicator of the health of the current workforce.

US market closing:

  • The Dow fell 280.44 points, or -0.88%, to 31,510.43
  • The S&P 500 fell 31.16 points, or -0.78%, to 3,955
  • The Nasdaq fell 66.93 points, or -0.56%, to 11,816.2 points
  • Russell 2000 fell 11.48 points or -0.62% to 1,844.12

Canada market closing:

  • The TSX Composite Index fell 182.09 points, or -0.93%, to 19,330.81 points
  • The TSX 60 Index fell 12.2 points, or -1.04%, to 1,166.33 points

Brazil market closing:

  • Bovespa fell 907.76 points or -0.82% to 109,522.88

energy:

Oil markets had a negative day today:

Crude Oil is down $1.112/BBL or -1.21% to 90.528

Brent crude fell $2.688/BBL or -2.71% to 96.622

Natural gas fell $0.045/MMBtu or -0.50% to 8.9970

Gasoline fell $0.0821/gallon, or -3.05%, to 2.6123

Heating oil fell $0.112/gallon or -2.93% to 3.7051

The above data was collected around 11:35 a.m. EDT on Wednesday

Top gainers in commodities: wheat (1.84%), wood (0.89%), soda ash (0.77%), rice (1.00%)

The biggest losers in commodities: Oats (-3.48%), Gasoline (-3.05%), Brent (-2.71%) and Heating Oil (-2.93%).

The above data was collected around 11:44 a.m. EDT on Wednesday.

Bonds:

Japan 0.225% (+0 basis points), US 2 by 3.44% (-0.024%), US$10 3.1212% (+1.12 basis points); United States 30 3.23% (+0.014%), Bund 1.536% (+2.6 basis points), France 2.154% (+3 basis points), Italy 3.8840% (+7.2 basis points), Turkey 12.63% (-31 basis points) , Greece 4.097% (+8.7 bp), Portugal 2.651% (+3.9 bp); Spain 2.736% (+4.1 basis points) and the UK bond 2.8030% (+9.9 basis points).

« Market Talk – August 30, 2022

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