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Market Talk – April 19, 2022


ASIA:

China’s economy grew 4.8 percent in the first quarter, the National Bureau of Statistics said Monday, warning of “significant challenges” ahead as a resurgence of the coronavirus threatens Beijing’s ambitious annual target. China’s gross domestic product growth was better than expected at 4.8 percent on-year in the first quarter, said the NBS on Monday, up from 4.0 percent in the final months of 2021. Industrial production growth eased to 5.0 percent in March, NBS data showed, down from the January-February period. Meanwhile, retail sales sank 3.5 percent and the urban unemployment rate ticked up to 5.8 percent in March.

India’s annual wholesale inflation rate accelerated to 14.55% in March, completing a year in double-digit territory as firms grapple with rising input costs and pass on higher prices to consumers. March’s figure was above the 13% forecast in a Reuters poll of analysts, as fuel prices rose 34.52% on the year, versus their 31.50% annual rise in February. Rising input costs for products such as fuel, metals and chemicals have pushed up wholesale prices, a proxy for producer prices. This is adding to pressure on retail prices, economists said. Headline retail inflation accelerated to 6.95% in March, its highest in 17 months and above the upper limit of the central bank’s tolerance band for a third straight month, putting pressure on the bank to raise interest rates.

The major Asian stock markets had a mixed day today:• NIKKEI 225 increased 185.38 points or 0.69% to 26,985.09• Shanghai decreased 1.50 points or -0.05% to 3,194.03• Hang Seng decreased 490.32 points or -2.28% to 21,027.76• ASX 200 increased 41.80 points or 0.56% to 7,565.20• Kospi increased 25.68 points or 0.95% to 2,718.89• SENSEX decreased 703.59 points or -1.23% to 56,463.15• Nifty50 decreased 215.00 points or -1.25% to 16,958.65

The major Asian currency markets had a mixed day today:• AUDUSD increased 0.00239 or 0.33% to 0.73764• NZDUSD decreased 0.00012 or -0.02% to 0.67294• USDJPY   increased 1.634 or 1.29% to 128.769• USDCNY  increased 0.03683 or 0.58% to 6.41605

Precious Metals:• Gold decreased 23.3 USD/t oz. or -1.18% to 1,955.20• Silver decreased 0.572 USD/t. oz or -2.21% to 25.267

Some economic news from last night:Australia:HIA New Home Sales (MoM) increased from -7.0% to 3.9%

Some economic news from todayJapan:Capacity Utilization (MoM) (Feb) increased from -3.6% to 1.5%Industrial Production (MoM) (Feb) increased from 0.1% to 2.0%New Zealand:GlobalDairyTrade Price Index decreased from -1.0% to -3.6%

EUROPE/EMEA:

The International Monetary Fund on Tuesday, April 19, warned the world about the threat of the rising inflation due to the ongoing Russia-Ukraine war. The global monetary body cautioned the nations to be vary of the “clear and present” danger of the rising commodity prices and supply-demand imbalances in its new growth forecast. “Many central banks, such as the Federal Reserve, had already moved toward tightening monetary policy,” said the IMF in its report on Tuesday.

Britain faces the worst inflation shock of all major advanced economies over the next two years, the International Monetary Fund warned as it slashed its growth forecast. The global watchdog said the U.K. economy will be around 1% smaller in both 2022 and 2023 than it forecast in January. It blamed the downgrade on the cost-of-living crisis and slowing investment as interest rates rise to tackle rocketing consumer prices. Consumer prices in the U.K. will increase 7.4% this year, and by a further 5.3% in 2023, the IMF said in its World Economic Outlook published Tuesday. Inflation is forecast to be below 3% for every other major advanced economy next year.

The major Europe stock markets had a negative day:• CAC 40 decreased 54.56 points or -0.83% to 6,534.79• FTSE 100 decreased 15.10 points or -0.20% to 7,601.28• DAX 30 decreased 10.39 points or -0.07% to 14,153.46

The major Europe currency markets had a mixed day today:• EURUSD increased 0.00126 or 0.12% to 1.07907• GBPUSD decreased 0.00078 or -0.06% to 1.29966• USDCHF increased 0.00639 or 0.68% to 0.95125

Some economic news from Europe today:Norway:Trade Balance (Mar) increased from 84.2B to 138.4BEuro Zone:Reserve Assets Total (Mar) increased from 1,091.96B to 1,102.82B

US/AMERICAS:                          

Moderna brought a new product to market this Tuesday after releasing clinical data of a “newer” COVID-19 vaccine. The company claims the new vaccination will target multiple strains of the virus – all nine, in fact. The data has not been peer-reviewed by other scientists, but that won’t stop the company from releasing another lucrative product.

US Treasury Secretary Janet Yellen is set to meet with world leaders to discuss the lingering food crisis. Yellen will discuss future action with the International Monetary Fund, World Bank, Group of Seven and Group of 20. The war in Ukraine has resulted in decreased availability to wheat and fertilizer. The Un has stated that Russia and Ukraine provide 30% of global wheat and barley, while Russia and Belarus export around 20% of all fertilizer.

US Market Closings:

  • Dow advanced 499.51 points or 1.45% to 34,911.2
  • S&P 500 advanced 70.52 points or 1.61% to 4,462.21
  • Nasdaq advanced 287.3 points or 2.15% to 13,619.66
  • Russell 2000 advanced 40.63 points or 2.04% to 2,030.77

 

Canada Market Closings:

  • TSX Composite advanced 140.41 points or 0.64% to 22,018.82
  • TSX 60 advanced 9.38 points or 0.71% to 1,331.19

 

Brazil Market Closing:

  • Bovespa declined 630.59 points or -0.55% to 115,056.66

 

ENERGY:

The oil markets had a negative day today:

• Crude Oil decreased 4.84 USD/BBL or -4.47% to 103.370• Brent decreased 5.04 USD/BBL or -4.45% to 108.12• Natural gas decreased 0.562 USD/MMBtu or -7.19% to 7.2570• Gasoline decreased 0.1113 USD/GAL or -3.29% to 3.2668• Heating oil decreased 0.0221 USD/GAL or -0.57% to 3.8687

The above data was collected around 14:18 EST on Tuesday   

• Top commodity gainers: Coal (3.85%) and Methanol (1.93%),  Rice(2.24%),  Zinc (2.04%)• Top commodity losers:  Orange Juice(-9.95%), Natural Gas (-7.19%), Crude Oil (-4.47%) and Brent (-4.45%)

The above data was collected around 14:27 EST on Tuesday.

BONDS: 

Japan 0.245%(+0.4bp), US 2’s 2.58% (+0.133%), US 10’s 2.9206% (+6.4bps); US 30’s 3.00% (+0.052%), Bunds 0.926% (+8.1bp), France 1.400% (+6.4bp), Italy 2.562% (+7.5bp), Turkey 21.65% (+32bp), Greece 2.966% (+4.5bp), Portugal 1.898% (+4.2bp); Spain 1.899% (+10.7bp) and UK Gilts 1.987% (+9.7bp).

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