Market Talk – Jan 10, 2023

Asia:

China stopped issuing short-term visas to South Korea and Japan on Tuesday, after announcing it would respond to countries that requested negative COVID-19 tests from Chinese travellers. In its first retaliatory move, the Chinese Embassy in South Korea suspended issuance of short-term visas to South Korean visitors. On its official WeChat account, the embassy said it would adjust the policy subject to the lifting of South Korea’s “discriminatory entry restrictions” against China. The Chinese Embassy in Japan later announced a similar move, saying the mission and its consulates had stopped issuing visas as of Tuesday. The embassy statement did not say when it would resume.

Major Asian stock markets had a mixed day today:

  • NIKKEI 225 rose 201.71 points, or 0.78%, to 26,175.56
  • Shanghai fell 6.58 points, or -0.21%, to 3,169.51
  • The Hang Seng Index fell 56.88 points, or -0.27%, to 21,331.46 points.
  • The ASX 200 fell 20.30 points, or -0.28%, to 7,131.00
  • The Kospi index rose 1.12 points, or 0.05 percent, to 2,351.31.
  • SENSEX shares fell 631.83 points, or -1.04%, to 60,115.48 points.
  • Nifty50 fell by 187.05 points, or -1.03%, to 17,914.15

The major Asian currency markets had a mixed day today:

  • AUDUSD fell 0.00267 or -0.39% to 0.68843
  • NZDUSD fell 0.00094, or -0.15%, to 0.63586
  • USDJPY rose 0.379, or 0.29%, to 132.259
  • USDCNY rose 0.00795, or 0.12%, to 6.78965

Valuable minerals:

  • Gold rose by $2.44/ton ounce. or 0.13% to 1,874.03
  • The price of silver decreased by $0.089/ton. ounces or -0.38% to 23.538

Some economic news from last night:

Japan:

Household Spending (MoM) decreased (November) from 1.1% to -0.9%

Household Spending Decreased (YoY) (November) From 1.2% to -1.2%

Tokyo core CPI (YoY) increased (Dec) from 3.6% to 4.0%

Tokyo CPI excluding food and energy (Dec) rose from -0.1% to 0.2%.

Some economic news from today:

China:

New loans (Dec) increased from 1,210.0 billion to 1,400.0 billion

M2 Money Stock (YoY) (Dec) down from 12.4% to 11.8%

Europe/EMEA:

Ukraine’s consumer price inflation rose to 26.6% in 2022 as the economy felt the impact of the Russian invasion, but it was lower than initially expected. The government said the consumer price index could rise from 10% in 2021 to around 30% due to the war disrupting supply chains and logistics, but government statistics department figures released on Tuesday showed inflation held steady at 0.7% in December. The central bank attributed the stabilization of inflation to the government’s decision not to raise utility fees in wartime – despite Russian attacks on energy facilities that led to electricity shortages – and improved supplies of food products. GDP data released last week also indicated that the Ukrainian economy has adapted better than initially expected to the realities of war, thanks to high levels of foreign aid and the resilience of Ukrainian businesses.

Major European stock markets had a negative day:

  • The CAC 40 fell 38.22 points, or -0.55%, to 6,869.14.
  • The FTSE 100 fell 30.45 points, or -0.39%, to 7,694.49 points.
  • The DAX 30 fell 18.23 points, or -0.12%, to 14,774.60.

The major European currency markets had a mixed day today:

  • EURUSD rose 0.00032, or 0.03%, to 1.07312
  • GBPUSD fell 0.00303, or -0.25%, to 1.21527
  • USDCHF rose 0.00179, or 0.19%, to 0.92309

Some economic news from Europe today:

United kingdom:

BRC Retail Sales (YoY) increased (Dec) from 4.1% to 6.5%

United States / America:

Washington does not control the Federal Reserve. Federal Reserve Chairman Jerome Powell reiterated that message on Tuesday while speaking to Sweden’s Riksbank. Powell stated that “the absence of direct political control over our decisions allows us to take these necessary actions without regard for short-term political factors.” The chairman noted that price stability is “the cornerstone of a healthy economy,” and must be maintained even if the decision is politically unfavorable. In addition, he said that climate change policies will not affect Fed policy. “We are not, and will not be, a climate policy maker.”

Although Powell stated that the Fed will not implement climate change policy in its decisions, the central bank has launched a pilot program to see how major institutions would respond in the event of a major weather event. Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Wells Fargo, and BoA plan to perform a scenario analysis of a major weather event, which will not be part of their stress tests. The President stated, “Decisions related to policies to directly address climate change should be made by elected branches of government, thus reflecting the will of the public as expressed through elections.”

US market close:

  • The Dow advanced 186.45 points, or 0.56%, to 33,704.1 points.
  • The S&P 500 advanced 27.16 points, or 0.7%, to 3,919.25
  • The Nasdaq advanced 106.98 points, or 1.01%, to 10,742.63.
  • Russell 2000 advanced 26.74 points, or 1.49%, to 1,822.65

Canada market closing:

  • The TSX Composite advanced 41.79 points, or 0.21%, to 19,898.86.
  • TSX 60 advanced 0.72 points, or 0.06%, to 1,198.19

Brazil Market Close:

  • Bovespa advanced 1,687.14 points, or 1.55%, to 110,816.71

energy:

The oil markets had a mixed day today:

  • Crude Oil rose $0.987/BBL, or 1.32%, to 75.617
  • Brent crude rose $1.085/BBL, or 1.36%, to 80.735
  • Natural gas fell $0.2212/mmbtu or -5.66%, to 3.6888
  • Gasoline rose $0.0538/gallon, or 2.35%, to 2.3467
  • Heating oil increased $0.0918/gallon, or 3.02%, to 3.1278

The above data was collected at approximately 13:48 EST on Tuesday

  • Top commodity gainers: heating oil (3.02%), gasoline (2.35%), sugar (2.45%) and methanol (2.55%)
  • The biggest losers in commodities: natural gas (-5.66%), palm oil (-3.25%), coffee (-5.63%) and cocoa (-3.12%).

The above data was collected at approximately 13:53 EST on Tuesday.

Bonds:

Japan 0.504% (+0.1bp), USA2 4.26% (+0.059%), USD10 3.6225% (+10.55bp); US 30 3.75% (+0.101%), Bund 2.293% (+7.9bp), France 2.788% (+5.8bp), Italy 4.218% (+4bp), Turkey 8.70% (+14bp) Greece 4.379% (-7.2 bp), Portugal 3.253% (+5.8 bp); Spain 3.334% (+6.8 bps) and the United Kingdom 3.562% (+3.4 bps).

Market Talk – January 9, 2023

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