Market Talk – September 21, 2022

Asia:

The Chinese government said on Wednesday that Taiwan will never allow China to “interfere” in its future, after a Chinese government spokesman said Beijing was ready to do its best to strive for a peaceful “reunification” with the island. China claims that democratically governed Taiwan is its territory. The Taiwan government rejects China’s sovereignty claims. China has conducted military exercises near Taiwan since early last month, after US House Speaker Nancy Pelosi visited Taipei, including firing missiles at waters near the island, although activities have since declined. China proposed a “one country, two systems” model for Taiwan, similar to the formula under which the former British colony of Hong Kong returned to Chinese rule in 1997.

Major Asian stock markets had a negative day today:

  • The NIKKEI 225 fell by 375.29 points, or -1.36%, to 27,313.13 points.
  • Shanghai Index fell 5.23 points, or -0.17%, to 3,117.18
  • Hang Seng fell 336.80 points, or -1.79%, to 18,444.62
  • The Kospi fell 20.64 points, or -0.87%, to 2,347.21
  • ASX 200 fell 106.20 points, or -1.56%, to 6,700.20
  • Sensex fell 262.96 points, or -0.44%, to 59,456.78
  • Nifty50 fell 97.90 points or -0.55% to 17,718.35

The major Asian currency markets had a mixed day today:

  • AUDUSD fell 0.00410 or -0.61% to 0.66541
  • NZDUSD fell 0.00130 or -0.22% to 0.58761
  • USDJPY rose 0.781 or 0.54% to 144.345
  • USDCNY rose 0.03160 or 0.45% to 7.06125

Precious metals:

  • Gold rose $5.79/ton ounce. or 0.35% to 1,668.90
  • Silver rose 0.222 dollars / ton. Ounces or 1.15% to 19.532

Some economic news from last night:

Australia:

MI Leading Index (MoM) increased from -0.2% to -0.1%

New Zealand:

Credit card spending (YoY) increased from 5.1% to 29.4%

Europe/Europe, Middle East and Africa:

The British government said on Wednesday it would cap wholesale electricity and gas costs for businesses to less than half the market price from next month, helping ease pressure from higher energy prices but adding to rapidly rising government spending. Wholesale electricity prices will be capped at around £211 ($239) per megawatt-hour (MWh) and gas prices at £75 per megawatt-hour, compared to projected market rates of £600 and £180, respectively. Wholesale gas and electricity prices soared in Europe after Russia invaded Ukraine and have remained volatile ever since. Final program unit prices will be confirmed on September 30th. Groups representing businesses from pubs to steelmakers have welcomed the campaign, saying the government has thrown a lifeline for businesses struggling to survive.

Major European stock markets had a green day:

  • The CAC 40 increased 51.86 points, or 0.87%, to 6,031.33 points
  • The FTSE 100 rose 44.98 points, or 0.63%, to 7,237.64
  • The DAX 30 Index rose 96.32 points, or 0.76%, to 12,767.15 points

The major European currency markets had a mixed day today:

  • EURUSD fell 0.00977 or -0.98% to 0.98742
  • GBPUSD fell 0.00599 or -0.53% to 1.13203
  • The US dollar rose against the Swiss franc 0.00165 or 0.17% to 0.96575

Some economic news from Europe today:

United kingdom:

Public sector net borrowing (August) increased from 2.11 billion to 11.06 billion

Public sector net cash requirements (August) increased from -5.087 billion to 5.321 billion

CBI (September) Industry Trends orders up -7 to -2

United States / America:

The ruling was passed and the Federal Open Market Committee voted to raise interest rates by three-quarters of a point. With inflation running at a level not seen in 40 years, the Fed is acting aggressively with no plans to change its hawkish policy anytime soon. This marks the third consecutive move of 75 basis points as rates are now between 3% and 3.25%. The Fed has set a final rate of 4.6% in 2023, even if inflation is not at the 2% target. The Fed also said it sees US GDP growth of just 0.2% in 2022, and a rise of only 1.8% over the long term. “No one knows if this process will lead to a recession, or if so, how significant that recession will be,” said Jerome Powell.

US market closing:

  • The Dow fell 522.45 points, or -1.7%, to 30,183.78 points
  • The S&P 500 fell 66 points, or -1.71%, to 3,789.93
  • Nasdaq fell 204.86 points, or -1.79%, to 11,220.19
  • Russell 2000 fell 25.35 points, or -1.42%, to 1,762.16

Canada market closing:

  • The TSX Composite Index fell 184.54 points, or -0.95%, to 19,184.54 points
  • TSX 60 fell 12.11 points, or -1.03%, to 1,160.53

Brazil market closing:

  • The Bovespa Index fell 581.05 points, or -0.52%, to 111,935.86

energy:

Oil markets had a mixed day today:

  • Crude Oil is down $0.06/BBL or -0.07% to 83.880
  • Brent fell $0.101/BBL or -0.11% to 90.519
  • Natural gas rose $0.0338/MMBtu or 0.44% to 7.7508
  • Gasoline rose $0.0479/gallon, or 1.96%, to 2.4957
  • Heating oil increased $0.0083/gallon or 0.25% to 3.3805

The above data was collected at around 13:47 EST on Wednesday

  • Top Commodity Gainers: Palm Oil (4.01%), Canola (2.15%), Bitumen (2.54%), Cotton (3.06%)
  • Biggest losers in commodities: copper (-1.42%), palladium (-2.11%), coffee (-3.00%) and timber (-2.85%)

The above data was collected at around 13:53 EST on Wednesday.

Bonds:

Japan 0.258% (+0.3 bps), US 2 3.99% (+0.025%), $10 3.5672% (-0.58 bps); US 30 3.58% (-0.005%), Bonds 1.884% (-5.5 bps), France 2.438% (-5.2 bps), Italy 4.123% (-6.9 bps), Turkey 11.32% (+0 bps) , Greece 4.454% (-2.7 basis points), Portugal 2.955% (-3.9 basis points); Spain 3.024% (-5.9 basis points) and the United Kingdom 3.3140% (+2 basis points).

« Market Talk – 20 September 2022

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