Market Talk – November 14, 2022

Asia:

Chinese President Xi Jinping told US President Joe Biden during their first face-to-face meeting since 2017 that the Taiwan issue is the “core of China’s core interests” and the “first red line” in bilateral relations that must not be crossed. Beijing considers Taiwan an inalienable part of China. The democratically elected government on the autonomous island rejects Beijing’s claim to sovereignty, while China has often accused the United States of supporting Taiwan independence in recent years. At a meeting on the Indonesian island of Bali, the first between the two leaders since Biden became president, Xi urged the US leader to translate US commitments made to Beijing regarding Taiwan into concrete actions.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 fell 300.10 points or -1.06% to 27,963.47
  • Shanghai Index fell 3.89 points, or -0.13%, to 3,083.40
  • Hang Seng rose 294.05 points, or 1.70%, to 17,619.71 points
  • The Kospi Index fell 8.51 points, or -0.34%, to 2,474.65 points
  • The ASX 200 fell 11.70 points, or -0.16%, to 7,146.30
  • SENSEX stock fell 170.89 points, or -0.28%, to 61,624.15
  • Nifty50 fell 20.55 points or -0.11% to 18,329.15

The major Asian currency markets had a mixed day today:

  • AUDUSD fell 0.00119 or -0.18% to 0.66960
  • NZDUSD fell 0.00039 or -0.06% to 0.60961
  • USDJPY rose 1.613 or 1.16% to 140.397
  • USDCNY fell 0.02536 or -0.36% to 7.06314

Precious metals:

  • Gold is down 0.71 USD/ton per ounce. or -0.04% to 1,769.98
  • Silver rose by $0.199/ton. ounces or 0.92% to 21.880

Some economic news from last night:

New Zealand:

The service performance index increased from 55.9 to 57.4

Some economic news of the day:

China:

FDI remained unchanged at 15.60%.

India:

CPI (YoY) (October) decreased from 7.41% to 6.77%

WPI Food (YoY) (October) Decreased from 11.03% to 8.33%

WPI Fuel (YoY) (October) Decreased from 32.61% to 23.17%

Oil Price Index Inflation (YoY) (October) decreased from 10.70% to 8.39%

Manufacturing Price Index Inflation (YoY) (October) decreased from 6.34% to 4.42%

Europe/Europe, Middle East and Africa:

The Bank of England policymaker argued on Friday that UK interest rates are already higher than they need to be to bring inflation back to target. Silvana Tineiro, an external member of the Bank of England’s Monetary Policy Committee, said at a conference in London that “politics was already in restricted territory” ahead of the Monetary Policy Committee’s meeting in November, when most members voted to raise interest rates by 0.75 percentage points to 3 in cent. cent. He said that even if interest rates remain at current levels, the economy is likely to slip into recession and inflation will fall below the target in the medium term, prompting the Bank of England to cut interest rates from 2024. If interest rates rise in line With recent market expectations, the UK will face a prolonged recession accompanied by a sharp rise in unemployment and further declines in living standards.

Major European stock markets had a green day:

  • The CAC 40 rose 14.55 points, or 0.22%, to 6,609.17
  • The FTSE 100 rose 67.13 points, or 0.92%, to 7,385.17
  • The DAX 30 Index rose 88.44 points, or 0.62%, to 1,4313.30 points

The major European currency markets had a mixed day today:

  • EURUSD fell 0.00088 or -0.08% to 1.03459
  • GBPUSD fell 0.00902 or -0.76% to 1.17427
  • USDCHF rose 0.00025 or 0.03% to 0.94195

Some economic news from Europe today:

Swiss:

PPI (YoY) (October) down from 5.4% to 4.9%

PPI (MoM) (October) down 0.2% to 0.0%

Euro-zone:

Industrial Production (MoM) (September) down 2.0% to 0.9%

Industrial Production (YoY) (September) increased from 2.8% to 4.9%

United States / America:

Fed Vice Chairman Lyle Brainard surprised markets by saying that the Fed may slow the pace of interest rate hikes. “I think it will probably be appropriate very soon to move to a slower pace of price increases,” she said during a live interview with Bloomberg News. This comes after four consecutive hikes of 75 basis points and rates are now between 3.75% and 4%. October inflation is still well above the Fed’s 2% target of 7.7%.

US market closing:

  • The Dow fell 211.16 points, or -0.63%, to 33,536.7 points
  • The S&P 500 fell 35.68 points, or -0.89%, to 3,957.25
  • The Nasdaq fell 127.11 points, or -1.12%, to 11,196.22
  • Russell 2000 fell 21.49 points or -1.14% to 1,861.25

Canada market closing:

  • The TSX Composite Index fell 189.7 points, or -0.94%, to 19,921.81
  • TSX 60 fell 10.56 points or -0.87% to 1206.14

Brazil market closing:

  • Bovespa advanced 907.79 points or 0.81% to 113,161.28

energy:

Oil markets had a mixed day today:

  • Crude Oil is down $2,536/BBL or -2.85% to 86.424
  • Brent fell $2,416/BBL or -2.52% to 93.574
  • Natural gas rose $0.4128/MMBtu or 7.02% to 6.2918
  • Gasoline fell $0.0647/gallon, or -2.48%, to 2.5449
  • Heating oil increased $0.0108/gallon or 0.30% to 3.5661

The above data was collected around 12:10 a.m. EDT on Monday

  • The biggest gainers in commodities: natural gas (7.02%), steel (3.21%), rhodium (3.04%) and zinc (3.11%)
  • The biggest losers in commodities: palm oil (-4.08%), wood (-3.28%), crude oil (-2.85%) and orange juice (-3.03%).

The above data was collected around 12:35 a.m. EDT on Monday.

Bonds:

Japan 0.250% (+1 bps), US 2 4.40% (+ 0.075%), US 10’s 3.8743% (+ 4.53 bps); US 30 4.08% (-0.002%) Bonds 2.149% (-0.9 bps) France 2.657% (-1.2 bps) Italy 4.179% (-1.9 bps) Turkey 11.60% (-13 bps) Greece 4.327%) – 18.1 basis points), Portugal 3.177% (+ 2.2 basis points); Spain 3.217% (+1.2 basis points) and UK bonds 3.3530% (-0.4 basis points).

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