Market Talk – August 5, 2022

Asia:

China continued military exercises near Taiwan and launched drones near Japan on Friday, escalating tensions across the strait that have threatened to boil over since Taipei welcomed US House Speaker Nancy Pelosi for a historic visit. Taiwan’s Defense Ministry said Chinese warships and planes continued exercises in the waters around the island, adding that the Chinese People’s Liberation Army (PLA) forces crossed the center line – halfway between the island and mainland China – in a move described as a “very provocative act”. . Two Chinese drones flew over Japan’s Okinawa Prefecture on Thursday, prompting the country’s Air Self-Defense to respond with fighter jets, according to a statement from the Defense Ministry in Tokyo on Friday.

Major Asian stock markets had a green day today:

  • NIKKEI 225 rose 243.67 points, or 0.87%, to 28,175.87
  • The Shanghai index rose 37.99 points, or 1.19%, to 3,227.03 points
  • Hang Seng rose 27.90 points, or 0.14%, to 20,201.94
  • The ASX 200 rose 40.70 points, or 0.58%, to 7,015.60
  • The Kospi added 17.69 points, or 0.72%, to 2,490.80
  • Sensex shares rose 89.13 points, or 0.15 percent, to 58,387.93 points
  • Nifty50 rose 15.50 points or 0.09% to 17,397.50

The major Asian currency markets had a mixed day today:

  • AUDUSD fell 0.00583 or -0.84% ​​to 0.69034
  • NZDUSD fell 0.0063 or -1.00% to 0.62390
  • USDJPY rose 2523 or 1.90% to 135,269
  • USDCNY rose 0.01743 or 0.26% to 6.76783

Precious metals:

l Gold decreased by $18.31/ton per ounce. or -1.02% to 1,772.77

Silver price decreased by 0.310 USD/ton. ounces or -1.54% to 19.841

Some economic news from last night:

Japan:

Average Cash Dividend (YoY) increased from 1.0% to 2.2%

Household Spending (MoM) (June) Increased From -1.9% to 1.5%

Household Spending (YoY) (June) Increased From -0.5% to 3.5%

Gross wage income of employees (June) increased from 1.0% to 2.2%

Overtime pay (annual) (June) increased from 5.50% to 5.80%

Foreign reserves (in US dollars) (July) increased from 1,311.3 billion to 1,323.0 billion

South Korea:

The current account (June) increased from 3.86 billion to 5.61 billion

Australia:

AIG Services Index (July) increased from 48.8 to 51.7

Some economic news of the day:

India:

The cash reserve ratio remains the same at 4.50%.

Raising the interest rate decision from 4.90% to 5.40%

The reverse repo rate remained the same at 3.35%.

Foreign exchange reserves, the US dollar, increased from 571.56 billion to 573.88 billion

Japan:

Synchronous Index (MoM) (June) increased from -1.9% to 4.1%

The leading index fell from 101.2 to 100.6

Leading Index (MoM) (June) increased from -1.7% to -0.6%

Hong Kong:

Foreign reserves (in US dollars) (July) decreased from 447.20 billion to 441.70 billion

Singapore:

Retail Sales (MoM) (June) decreased from 1.8% to -1.4%

Retail Sales Dropped (YoY) (June) from 17.8% to 14.8%

Europe/Europe, Middle East and Africa:

The Bank of England warned that the UK would fall into a recession as it raised interest rates by the most in 27 years. The economy is expected to contract in the last three months of this year and to continue deflation until the end of 2023. Interest rates have risen to 1.75% as the bank struggles to stem rising rates, with inflation now exceeding 13%. The bank’s governor, Andrew Bailey, said he had “enormous sympathy and understanding for those who suffer the most” with the cost of living. Now rates have risen to 1.75%, homeowners with a typical mortgage will have to pay an extra £52 a month. Those with a standard variable mortgage would see an increase of £59.

Major European stock markets had a negative day:

The CAC 40 fell 41.04 points, or -0.63%, to 6,472.35 .

The FTSE 100 fell 8.32 points, or -0.11%, to 7,439.74

The DAX 30 Index fell 88.75 points or -0.65% to 13,573.93

The major European currency markets had a mixed day today:

  • EURUSD fell 0.0068 or -0.66% to 1.01797
  • GBPUSD fell 0.00803 or -0.66% to 1.20768
  • USDCHF rose 0.00749 or 0.78% to 0.96239

Some economic news from Europe today:

United kingdom:

Halifax House Price Index (YoY) decreased from 12.5% ​​to 11.8%

Halifax House Price Index (MoM) (July) decreased from 1.4% to -0.1%

Germany:

German Industrial Production (MoM) (June) increased from -0.1% to 0.4%

France:

The French Current Account (June) increased from -3.70 billion to -1.60 billion

French exports increased (June) from 48.2 billion to 49.7 billion

French imports (June) increased from 61.1 billion to 62.8 billion

French Industrial Production (MoM) (June) Increased 0.2% to 1.4%

French Non-Farm Payrolls (QoQ) (Q2) increased from 0.3% to 0.5%

French total reserve assets (July) increased from 240.187.0 million to 241.892.0 million

The French Trade Balance (June) decreased from -12.9 billion to -13.1 billion

Spain:

Spanish Industrial Production (YoY) (June) increased from 4.5% to 7.0%

Italia:

Italian Industrial Production (MoM) (June) decreased from -1.1% to -2.1%

Italian Industrial Production Down (YoY) (June) From 3.4% to -1.2%

United States / America:

The US Bureau of Labor Statistics (BLS) reported an upbeat jobs report on Friday. Nonfarm payrolls rose by 528,000 in July, beating expectations of 258,000, bringing the unemployment rate down from 3.6% to 3.5%. Wage growth was up 0.5% for the month and 5.2% year over year. The leisure and hospitality sector saw the biggest rise after adding 96,000 jobs, followed by business services at 89,000 jobs. Health services increased by 70 thousand positions, the government grew by 57 thousand, construction saw an increase of 32 thousand. This is the strongest salary report since February of this year.

US market closing:

  • Dow advanced 74.69 points, or 0.23%, to 3,2801.51
  • The Standard & Poor’s 500 fell 6.87 points, or -0.17%, to 4,145.07
  • The Nasdaq fell 63.02 points, or -0.5 percent, to 12,657.56 points
  • Russell 2000 advanced 15.37 points, or 0.81%, to 1921.82 points

Canada market closing:

  • Composite TSX advances 43.09 points, or 0.22%, to 19620.13
  • TSX 60 advanced 2.19 points, or 0.18%, to 1186.24

Brazil market closing:

  • Bovespa advances 579.7 points or 0.55% to 106,471.92

energy:

Oil markets had a mixed day today:

l Crude Oil rose $1.25/BBL or 1.41% to 89.703

Brent crude price rose 1.5 USD/BBL or 1.59% to 95.436

Natural gas rose $0.066/MMBtu or 0.81% to 8.1923

Gasoline rose $0.0782/gallon or 2.80% to 2.8677

l Heating oil decreased $0.0627/gallon or -1.88% to 3.2688

The above data was collected around 12:52 a.m. EDT on Friday

The biggest gainers in commodities: Gasoline (2.80%), sugar (2.22%), palladium (3.15%) and oats (2.16%)

The biggest losers in commodities: cocoa (-1.62%), coffee (-4.13%), wood (-4.06%), heating oil (-1.88%).

The above data was collected around 13:00 EST on Friday.

Bonds:

Japan 0.165% (+0 basis points), US 2’s 3.24% (+0.201%), US 10’s 2.8360% (+16 basis points); The United States at 30 3.07% (+0.113%), the Bund 0.9440% (+13.5 basis points), France 1.4950% (+13.3 basis points), Italy 3.03% (+8.4 basis points), Turkey 16.45% (-27 basis points) ), Greece 3.052% (+7.5 basis points), Portugal 1.970% (+13.2 basis points); Spain 2.046% (+13.6 basis points) and British bonds 2.0350% (+14.8 basis points).

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