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Market Talk – February 18, 2022


ASIA:

India’s imports of oil from Iraq surged in January to a 29-month high of about 1.3 million barrels per day (bpd), making up nearly a third of the supplies to Asia’s third largest economy, data from shipping and industry sources show. India imported 4.6 million bpd of oil in January, a decline of about 1% from the previous month and about 3% from the year earlier, data compiled by Reuters showed. Imports from Iraq were the highest since Aug. 2019. India’s oil imports in February and March could rise as state refiners, which make up 60% of its total capacity of 5 million bpd, traditionally raise runs in the final fiscal quarter to meet production targets set by the government. Indian refiners buy medium to heavy grades from the Middle East under annual deals at official selling prices (OSPs) and rely on the spot market for most of their requirement for sweet light oil, mainly from West Africa. India’s imports of Nigerian oil declined to about 187,000 bpd, their lowest since July 2020, the data showed. Brent crude’s premium to Dubai swaps, or the spread between low- and high-sulphur crude , averaged $4.58 a barrel in November, Reuters reported.

 

The major Asian stock markets had a mixed day today: • NIKKEI 225 decreased 110.80 points or -0.41% to 27,122.07 • Shanghai increased 22.72 points or 0.66% to 3,490.76 • Hang Seng decreased 465.06 points or -1.88% to 24.327.71 • ASX 200 decreased 74.50 points or -1.02% to 7,221.70 • Kospi increased 0.43 points or 0.02% to 2,744.52 • SENSEX decreased 59.04 points or -0.10% to 57,832.97 • Nifty50 decreased 28.30 points or -0.16% to 17,276.30  The major Asian currency markets had a mixed day today: • AUDUSD decreased 0.00119 or -0.17% to 0.71770 • NZDUSD decreased 0.00013 or -0.02% to 0.66966 • USDJPY increased 0.245 or 0.21% to 115.143 • USDCNY  decreased 0.01004 or -0.16% to 6.32328  Precious Metals:  • Gold decreased 5.31 USD/t oz. or -0.28% to 1,891.96 • Silver increased 0.107 USD/t. oz or 0.45% to 23.918  Some economic news from last night: Japan: CPI, n.s.a (MoM) (Jan) increased from 0.2% to 0.3% National Core CPI (YoY) (Jan) decreased from 0.5% to 0.2% National CPI (YoY) (Jan) decreased from 0.8% to 0.5% New Zealand: PPI Input (QoQ) (Q4) decreased from 1.6% to 1.1% PPI Output (QoQ) (Q4) decreased from 1.8% to 1.4% 

Some economic news from today India: FX Reserves, USD decreased from 631.95B to 630.19B     EUROPE/EMEA:

Germany’s economy suffered losses caused by the COVID-19 pandemic of 330 billion euros (375.2 billion U.S. dollars) in 2020 and 2021, the ifo Institute said on Thursday. This was equal to 10 percent of Germany’s economic output in 2019, according to calculations by the ifo Institute. Future value-added losses, for example due to shortfalls in education, were not taken into account. According to the Federal Statistical Office (Destatis), Germany’s gross domestic product (GDP) rose by 2.7 percent in 2021 compared with the previous year, but was still down 2.0 percent from the pre-COVID-19 crisis year 2019.

The major Europe stock markets had a negative day: • CAC 40 decreased 17.19 points or -0.25% to 6,929.63 • FTSE 100 decreased 23.75 points or -0.32% to 7,513.62 • DAX 30 decreased 225.12 points or -1.47% to 15,042.51 

The major Europe currency markets had a mixed day today: • EURUSD decreased 0.00443 or -0.39% to 1.13237 • GBPUSD decreased 0.00372 or -0.27% to 1.35813 • USDCHF increased 0.00144 or 0.16% to 0.92151   Some economic news from Europe today: UK: Core Retail Sales (YoY) (Jan) increased from -3.8% to 7.2% Core Retail Sales (MoM) (Jan) increased from -3.9% to 1.7% Retail Sales (YoY) (Jan) increased from -1.7% to 9.1% Retail Sales (MoM) (Jan) increased from -4.0% to 1.9% France: French Unemployment Rate (Q4) decreased from 8.0% to 7.4% French CPI (MoM) (Jan) increased from 0.2% to 0.3% French CPI (YoY) increased from 2.8% to 2.9% French HICP (YoY) (Jan) decreased from 3.4% to 3.3% French HICP (MoM) (Jan) remain the same at 0.2% Euro Zone: Consumer Confidence (Feb) decreased from -8.5 to -8.8 Current Account (Dec) decreased from 23.6B to 22.6B Current Account n.s.a. (Dec) increased from 26.0B to 35.7B Construction Output (MoM) (Dec) decreased from -0.18% to -4.03% 

US/AMERICAS:

US import prices jumped to an 11-year high as high energy prices mixed with the supply chain crisis has sent prices soaring. Import prices rose 2% in January after declining by 0.4% the month prior, the Labor Department reported. The 9.3% surge in fuel and 9.5% increase n petroleum accelerated prices. The close of imported food rose 3.6% as well. Core import prices rose 1.1% last month but increased 6.2% on a YoY basis.

The US Department of Education announced that it is canceling $415 million in student loans for some who attended for-profit schools, such as DeVry University. The department found that between 2008 and 2015, DeVry misinformed students by claiming 90% of graduates found employment within sic months of graduation when the true figure was 58%. The new ruling will help 16,000 borrowers. So far, around $2 billion in student loans have been forgiven under the Biden Administration, largely due to schools deceiving their students.

US Market Closings:

  • Dow declined 232.85 points or -0.68% to 34,079.18
  • S&P 500 declined 31.39 points or -0.72% to 4,348.87
  • Nasdaq declined 168.65 points or -1.23% to 13,548.07
  • Russell 2000 declined 18.76 points or -0.93% to 2,009.33

 

Canada Market Closings:

  • TSX Composite declined 168.13 points or -0.79% to 21,008.2
  • TSX 60 declined 7.92 points or -0.62% to 1,273.61

 

Brazil Market Closing:

  • Bovespa declined 648.63 points or -0.57% to 112,879.85

 

ENERGY The oil markets had a green day today:  • Crude Oil increased 0.24 USD/BBL or 0.26% to 92.0000 • Brent increased 0.55 USD/BBL or 0.59% to 93.5200 • Natural gas increased 0.083 USD/MMBtu or 1.85% to 4.5690 • Gasoline increased 0.019 USD/GAL or 0.72% to 2.6676 • Heating oil increased 0.0007 USD/GAL or 0.03% to 2.7869 

The above data was collected around 11:28 EST on Friday  • Top commodity gainers: Natural Gas (1.85%) and Methanol (2.67%), Lithium (2.90%), Rubber (3.01%) • Top commodity losers: Oat (-1.71%), Palladium (-2.25%), Platinum(-1.89%) and Lumber (-2.12%) 

The above data was collected around 11:35 EST on Friday.   BONDS:   Japan 0.216%(-0.8bp), US 2’s 1.4737% (+0.00%), US 10’s 1.9338% (-3.46bps); US 30’s 2.2579% (-0.04%), Bunds 0.201% (-3.2bp), France 0.687% (-1.4bp), Italy 1.848% (+0.8bp), Turkey 20.82% (-7bp), Greece 2.575% (-4.5bp), Portugal 1.09% (-1.2bp); Spain 1.21% (-1.3bp) and UK Gilts 1.3850% (-7.3bp).                   

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