Market Talk – September 22, 2022

Asia:

Junior Information Technology Minister Rajiv Chandrasekhar told reporters on Wednesday that India expects to see a total investment of at least $25 billion as a result of a stimulus program designed to encourage domestic manufacturing of chips and display panels. Prime Minister Narendra Modi’s government is seeking to attract more major investments in stimulus as part of a $10 billion stimulus plan to manufacture chips and displays to make India a major player in the global supply chain. The government previously agreed to cover 30 to 50 percent of the cost of setting up new display and chip plants. On Wednesday, it said it would also cover 50% of the capital expenditures needed to build a semiconductor packaging facility.

Major Asian stock markets had a negative day today:

  • NIKKEI 225 fell 159.30 points or -0.58% to 27153.83
  • Shanghai Index fell 8.27 points, or -0.27%, to 3,108.91 points
  • Hang Seng fell 296.67 points, or -1.61%, to 18,147.95
  • The Kospi fell 14.90 points, or -0.63%, to 2,332.31
  • ASX 200 closed
  • Sensex shares fell 337.06 points, or -0.57%, to 59,119.72 points
  • Nifty50 fell 88.55 points or -0.50% to 17,629.80 points

The major Asian currency markets had a mixed day today:

  • AUDUSD rose 0.00219 or 0.33% to 0.66327
  • NZDUSD fell 0.00149 or -0.25% to 0.58371
  • USDJPY fell 2.151 or -1.49% to 142.220
  • USDCNY rose 0.0146 or 0.21% to 7.08900

Precious metals:

  • Gold is down $3.05/ton per ounce. or -0.18% to 1,670.69
  • Silver price decreased by 0.1 USD/ton. ounces or -0.51% to 19.490

Some economic news from last night:

Japan:

BoJ rate decision remains unchanged at -0.10%

New Zealand:

Westpac Consumer Confidence Index (Q3) increased from 78.7 to 87.6

Exports (August) decreased from 6.35 billion to 5.48 billion

Imports (August) increased from 7.76 billion to 7.93 billion

Trade Balance (MoM) (August) decreased from -1406 million to 2447 million

Trade Balance (YoY) (August) decreased from -11,970 million to -12,280 million

Some economic news of the day:

Japan:

The Bank of Japan Core CPI (YoY) increased from 1.8% to 1.9%

Hong Kong:

CPI (YoY) (August) remained unchanged at 1.90%

Raising the interest rate decision (monthly) from 2.75% to 3.50%

India:

M3 money supply remained the same at 8.9%

Europe/Europe, Middle East and Africa:

Eurozone government bond yields hit new multi-year highs after three European central banks joined the US Federal Reserve in raising interest rates on Thursday, with the Fed set on a steeper-than-expected tightening path in upcoming meetings. Other central banks continue to raise interest rates, with the Bank of England increasing its key rate by 50 basis points as expected. The Swiss and Norwegian central banks also raised interest rates last Thursday. The German two-year bond yield, which is more sensitive to interest rate hike expectations, rose 10 basis points at 1.858%, after earlier hitting its highest level since May 2011 at 1.897%. The German 10-year bond yield reversed an earlier decline and rose 10 basis points to 1.991%, its highest level since January 2014.

Speaking at a Security Council meeting in Ukraine on Thursday, UN Secretary-General Antonio Guterres said talk of a nuclear conflict was “totally unacceptable”. He also effectively warned Russia against land grabs, saying that “any annexation of a state’s territory by another state resulting from the threat or use of force is a violation of the Charter of the United Nations and international law.” The Security Council has been unable to take any meaningful action against Ukraine because Russia is a permanent member with veto power, along with the United States, France, Britain and China. Thursday’s meeting was at least the 20th on Ukraine this year.

Major European stock markets had a negative day:

  • The CAC 40 index fell 112.83 points, or -1.87%, to 5,918.50 points
  • The FTSE 100 fell 78.12 points, or -1.08%, to 7,159.52
  • The DAX 30 Index fell 235.52 points, or -1.84%, to 12,531.63 points

The major European currency markets had a mixed day today:

  • EURUSD fell 0.0009 or -0.09% to 0.98241
  • GBPUSD rose 0.00051 or 0.05% to 1.12587
  • The dollar rose against the Swiss franc by 0.01633 or 1.69% to 0.98233

Some economic news from Europe today:

Swiss:

The SNB rate decision (Q3) increased from -0.25% to 0.50%.

United kingdom:

The Bank of England interest rate decision (September) increased from 1.75% to 2.25%.

Euro-zone:

Consumer Confidence (September) fell from -25.0 to -28.8

United States / America:

U.S. job claims rose last week for the first time in five weeks, according to new data from the Labor Department. 213,000 benefit claims were filed during the week ending September 17. Continuing claims (data collected the previous week) decreased by 22,000 claims to 1.37 million. The US job market is still strong. About 11.25 million Americans were unemployed last year at this time. However, the Fed believes that unemployment will rise as a necessary evil to combat inflation.

US market closing:

  • The Dow fell 107.1 points, or -0.35%, to 30,076.68
  • The S&P 500 fell 31.94 points, or -0.84%, to 3,757.99
  • Nasdaq fell 153.39 points, or -1.37%, to 11,066.81
  • Russell 2000 fell 39.85 points, or -2.26%, to 1,722.31

Canada market closing:

  • The TSX Composite fell 181.86 points, or -0.95%, to 19,002.68
  • The TSX 60 Index is down 7.71 points, or -0.66%, year-over-year 1,152.82

Brazil market closing:

  • Bovespa advanced 2,134.62 points, or 1.91%, to 114,070.48 points

energy:

Oil markets had a mixed day today:

  • Crude Oil rose $0.935/BBL or 1.13% to 83.875
  • Brent rose $1.06/BBL, or 1.18%, to 90.891
  • Natural gas fell $0.2374/MMBtu or -3.05% to 7.5416
  • Gasoline rose $0.0335/gallon or 1.35% to 2.5200
  • Heating oil increased $0.0918/gallon or 2.75% to 3.4256

The above data was collected around 11:36 a.m. EDT on Thursday

  • Top Commodity Gainers: Heating Oil (2.75%), Methanol (2.54%), Bitumen (1.75%), Steel (2.33%)
  • The biggest losers in commodities: cocoa (-1.45%), palm oil (-1.57%), natural gas (-3.05%) and wood (-5.77%)

The above data was collected around 11:41 a.m. EDT on Thursday.

Bonds:

Japan 0.235% (-2 basis points), US 2’s 4.14% (+0.149%), US 10’s 3.6899% (+17.79 basis points); US 30 3.62% (+0.104%), Bund 1.972% (+8 bps), France 2.532% (+9 bps), Italy 4.180% (+5.7 bps), Turkey 11.32% (+0 bps) , Greece 4.510% (+5.6 bps), Portugal 3.009% (+6.6 bps); Spain 3.123% (+9.9 basis points) and UK bonds 3.5030% (+18.9 basis points).

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