Market Talk – January 23, 2023

Asia:

The head of the European Central Bank said on Friday that China’s decision to reopen its economy will lead to higher inflation in Europe as both compete for more capacity. Reopening China is “something that will be positive for China mostly, something that will be positive for the rest of the world, but we will have inflationary pressure on a lot of us, simply because the level of energy that China consumed last year was definitely less than what they will be consuming this year, the amount liquefied natural gas [liquefied natural gas] that [they] Buying from the rest of the world will be higher than what we’ve seen and there’s not a lot of spare capacity in terms of oil and gas,” Lagarde said during a Davos panel hearing on Friday led by CNBC’s Jeff Cutmore.

Major Asian stock markets had a green day today:

  • The NIKKEI 225 increased 352.51 points, or 1.33%, to 26,906.04.
  • Shanghai is closed
  • Hang Seng shut down
  • The ASX 200 rose 5.10 points, or 0.07%, to 7,457.30
  • Cosby locked
  • The SENSEX index rose 319.90 points, or 0.53%, to 60,941.67 points.
  • Nifty50 rose 90.90 points, or 0.50%, to 18,118.55

The major Asian currency markets had a mixed day today:

  • AUDUSD rose 0.00569, or 0.82%, to 0.70229
  • NZDUSD rose 0.00032, or 0.05%, to 0.64752
  • USDJPY rose 1.109, or 0.86%, to 130.679
  • USDCNY fell 0.00212, or -0.03%, to 6.77938

Valuable minerals:

  • Gold fell by $4.81/ton ounce. or -0.25% to 1,921.76
  • Silver decreased by $0.681/ton. ounce or -2.84% to 23,267,267.7

No economic news from last night and today.

Europe/EMEA:

The International Energy Agency has warned that European companies could face higher costs when looking to buy natural gas this year as there will be more competition for the commodity. One of the biggest challenges European citizens faced over the past year was inflation, mostly driven by high energy bills. The European Central Bank raised interest rates four times throughout 2022, bringing the deposit rate to 2%. The central bank said in December that it would raise interest rates further in 2023 to tackle very high inflation. The inflation rate in December was 9.2 percent in the eurozone, according to preliminary figures. This was the second consecutive monthly decline in price increases across the Eurozone.

Major European stock markets had a green day:

  • The CAC 40 rose 36.03 points, or 0.52%, to 7,032.02 points.
  • The FTSE 100 rose 14.08 points, or 0.18%, to 7,784.67 points.
  • The DAX 30 rose 69.39 points, or 0.46%, to 15,102.95.

The major European currency markets had a mixed day today:

  • EURUSD rose 0.00039, or 0.04%, to 1.08589
  • GBPUSD fell 0.00245 or -0.20% to 1.23685
  • USDCHF rose 0.00331, or 0.36%, to 0.92371

Some economic news from Europe today:

Euro-zone:

Consumer Confidence (January) increased from -22.0 to -20.9

United States / America:

Over the weekend, US Treasury Secretary Janet Yellen announced that restructuring the Internal Revenue Service (IRS) is one of her top priorities. The Reducing Inflation Act, passed in 2022, will provide the IRS an additional $80 billion in funding as well as 87,000 new tax agents. Yellen claimed that “this agency needs to be completely rebuilt” as she mused about the agency’s long filing backlog. Janet Yellen has also hinted that she will likely retire once her current role begins.

US market close:

  • The Dow advanced 254.07 points, or 0.76%, to 33,629.56.
  • The S&P 500 advanced 47.2 points, or 1.19%, to 4,019.81.
  • The Nasdaq advanced 223.98 points, or 2.01%, to 11,364.41.
  • Russell 2000 advanced 23.43 points, or 1.25%, to 1,890.77.

Canada market closing:

  • The TSX Composite advanced 128.37 points, or 0.63%, to 20,631.58.
  • TSX 60 advanced 7.66 points, or 0.62%, to 1,242.87

Brazil Market Close:

  • The Bovespa index fell 303.36 points, or -0.27%, to 111,737.28.

energy:

Oil markets had a green day today:

  • Crude Oil rose $0.167/BBL, or 0.20%, to 81.807
  • Brent crude rose $0.593/BBL, or 0.68%, to 88.223
  • Natural gas rose $0.1632/mmbtu, or 5.14%, to 3.3372
  • Gasoline rose $0.0491/gallon, or 1.86%, to 2.6945
  • Heating oil increased $0.0708/gallon, or 2.04%, to 3.5376.

The above data was collected at approximately 12:36 a.m. EST on Monday

  • Top commodity gainers: Gasoline (1.86%), Heating Oil (2.04%), Coffee (2.68%) and Natural Gas (5.14%)
  • The biggest losers in commodities: Corn (-1.97%), Soybeans (-1.64%), Wheat (-3.86%) and Silver (-2.84%).

The above data was collected at approximately 12:41 a.m. EST on Monday.

Bonds:

Japan 0.38% (-2 bps), USA 2 up 4.23% (+0.049%), USD 10 3.5264% (+4.24 bps); US 30 3.69% (+0.035%), Bunds 2.197% (+2.6bp), France 2.649% (+3bp), Italy 4.016% (+3.4bp), Turkey 9.94% (+2bp) Greece 4.193% (+6.4 bp), Portugal 3.095% (+3.8 bp); Spain 3.207% (+4.6 basis points) and British Bonds 3.358% (-2.3 basis points).

Market Talk – January 20, 2023

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