Market Talk – October 5, 2022

Asia:

Business sentiment among Japanese manufacturers worsened for the third consecutive quarter from July to September, according to a central bank survey, as the world’s third-largest economy grappled with rising costs, a weak yen and pandemic restrictions. A Bank of Japan “tankan” survey on Monday showed that business expectations for major manufacturers fell to +8 in September from plus 9 in June. The survey showed a slight improvement in sentiment in the services sector than it was three months ago, although retailers were less optimistic about the higher cost of living caused by higher commodity prices and a weaker yen.

Major Asian stock markets had a green day today:

  • The NIKKEI 225 increased 128.32 points, or 0.48%, to 27,120.53
  • Shanghai is closed
  • Hang Seng rose 1008.46 points, or 5.90%, to 18,087.97 points
  • The Kospi added 5.84 points, or 0.26 percent, to 2,215.22
  • The ASX 200 Index rose 116.40 points, or 1.74%, to 6,815.70 points
  • SENSEX CLOSED
  • Nifty50 closed

The major Asian currency markets had a mixed day today:

  • AUDUSD fell 0.00132 or -0.20% to 0.64873
  • NZDUSD fell 0.00024 or -0.04% to 0.57276
  • USDJPY rose 0.503 or 0.35% to 144.563
  • USDCNY rose 0.0292 or 0.41% to 7.06730

Precious metals:

  • Gold is down $11.20/ton per ounce. or -0.65% to 1715.04
  • Silver price decreased by 0.522 USD/ton. ounces or -2.47% to 20.588

Some economic news from last night: 1

Japan:

Services PMI (September) increased from 51.9 to 52.2

South Korea:

CPI (YoY) (September) decreased from 5.7% to 5.6%

CPI (MoM) (September) increased from -0.1% to 0.3%

Australia:

Services PMI rose from 50.4 to 50.6

Retail Sales (MoM) decreased from 1.3% to 0.6%

New Zealand:

Raise the Reserve Bank of New Zealand interest rate decision from 3.00% to 3.50%

Some economic news of the day:

Singapore:

Retail Sales (MoM) (August) decreased 0.7% to -1.3%

Retail Sales (YoY) (August) decreased from 13.9% to 13.0%

Europe/Europe, Middle East and Africa:

In its latest World Economic Outlook, the International Monetary Fund said the world must cut greenhouse gas emissions by at least a quarter by the end of this decade to achieve carbon neutrality by 2050. The long-term economic costs, even if they are overshadowed by the myriad . Range benefits to slow climate change. The International Monetary Fund has highlighted the short-term impact of various climate change mitigation policies on output and inflation. If the right measures are taken immediately and gradually over the next eight years, the costs will be small. However, if the transition to renewables is delayed, the costs will be much higher.

Major European stock markets had a negative day:

  • The CAC 40 index fell 54.23 points, or -0.90%, to 5,985.46 points
  • The FTSE 100 fell 33.84 points, or -0.48%, to 7,052.62
  • The DAX 30 fell 153.30 points, or -1.21%, to 12517.18

The major European currency markets had a mixed day today:

  • EURUSD fell 0.00972 or -0.97% to 0.98843
  • GBPUSD fell 0.01175 or -1.03% to 1.13368
  • USDCHF rose 0.00375 or 0.38% to 0.98285

Some economic news from Europe today:

Germany:

German Exports (MoM) (August) increased from -1.6% to 1.6%

German Imports (MoM) (August) increased from 0.1% to 3.4%

German Trade Balance (August) decreased from 3.4 billion to 1.2 billion

German Composite PMI (September) fell from 46.9 to 45.7

German Services PMI (September) fell from 47.7 to 45.0

France:

French Industrial Production (MoM) (August) increased from -1.6% to 2.4%

French S&P Composite Global PMI (September) increased from 50.4 to 51.2

French Services PMI (September) rose from 51.2 to 52.9

Spain:

Spanish Services PMI (September) fell from 50.6 to 48.5

Italia:

Italian public deficit (second quarter) decreased from 9.0% to 3.1%

Italian Composite PMI (September) fell from 49.6 to 47.6

Italian Services PMI (September) fell from 50.5 to 48.8

United kingdom:

Composite PMI (September) fell from 49.6 to 49.1

Services PMI (September) fell from 50.9 to 50.0

Euro-zone:

S&P Global Composite PMI (September) fell from 48.9 to 48.1

Services PMI (September) fell from 49.8 to 48.8

United States / America:

The US ADP report was released today, which showed that the labor market remains strong. In September, companies added 208,000 positions, beating August’s upwardly revised reading of 185,000 jobs. Large companies with 50-499 employees saw the largest gains after adding 90,000 jobs, followed by large companies (60,000) and small businesses (58,000). The transportation and utilities sector saw growth of 147,000, offsetting losses in commodity production (-29000), manufacturing (-13000), and mining (-16,000). Professional services saw 57,000 new jobs, education added 38,000, and hospitality added 31,000.

The ADP also reported that the annual salary rose 7.8% from last September. Those who changed jobs amid the “big resignation” saw the largest wage growth with an average gain of 15.7%. The Bureau of Labor Statistics’ non-farm payrolls report will be released on Friday and is closely watched. The ADP estimate has been below the BLS figure for some time, and analysts on Friday expected it to report monthly growth of about 275,000 jobs.

US market closing:

  • The Dow fell 42.45 points, or -0.14%, to 30,273.87
  • The S&P 500 fell 7.65 points, or -0.2%, to 3,783.28
  • The Nasdaq fell 27.77 points, or -025%, to 11,148.64 points
  • Russell 2000 fell 13.07 points, or -0.74%, to 1,762.69

Canada market closing:

  • The TSX Composite Index fell 135.9 points, or -0.7%, to 19,235.09
  • TSX 60 fell 8.61 points, or -0.74%, to 1,162.56

Brazil market closing:

  • Bovespa advances 967.7 points or 0.83% to 117,197.82

energy:

Oil markets had a mixed day today:

  • Crude Oil rose $0.988/BBL or 1.14% to 87.508
  • Brent rose $1,268/BBL, or 1.38%, to 93.068
  • Natural gas rose $0.0922/MMBtu or 1.35% to 6.9292
  • Gasoline fell $0.0268/gallon or -1.00% to 2.6562
  • Heating oil increased $0.1498/gallon or 4.24% to 3.6856

The above data was collected around 14:33 EST on Wednesday

  • Top Commodity Gainers: Heating Oil (4.24%), Cheese (12.84%), Lean Pigs (4.50%) and Milk (11.45%)
  • The biggest losers in commodities: orange juice (-4.00%), palladium (-2.85%), cotton (-5.49%) and silver (-2.47%).

The above data was collected at around 14:38 EST on Wednesday.

Bonds:

Japan 0.25% (+2.1 basis points), US 2’s 4.16% (+0.059%), US 10’s 3.7649% (+14.79 basis points); United States 30 3.77% (+0.087%), the Bund 2.017% (+13.5 basis points), France 2.637% (+16.1 basis points), Italy 4.46% (+27.2 basis points), Turkey 11.84% (-3 points), Greece 4.649% (+1 basis point), Portugal 3.125% (+18.1 basis point); Spain 3.236% (+18.3 basis points) and Britain 4.0330% (+16.3 basis points).

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