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HomeEconomyMarket Talk – June 17, 2022

Market Talk – June 17, 2022


ASIA:

The UAE has placed a ban on the export and re-export of all varieties of wheat from India for four months. The resolution applies to all varieties of wheat and wheat flour, which were imported into the country before 13, May 2022, the ministry of economy said in a statement issued on Wednesday. The ban on exports comes in the wake of the global shortage of the commodity in the wake of the Russia-Ukraine conflict, as Ukraine is one of the world’s largest wheat exporters. India, the second-largest wheat producer, on May 13 imposed a ban on the export of the grain to shield its domestic population from shortages and high prices. UAE’s economy ministry said that companies wishing to export/re-export wheat of Indian origin, which were imported into the country before 13 May 2022, must obtain the ministry’s permission to export outside of the UAE.

 

The major Asian stock markets had a mixed day today:

 

  • NIKKEI 225 decreased 468.20 points or -1.77% to 25,963.00

 

  • Shanghai increased 31.40 points or 0.96% to 3,316.79

 

  • Hang Seng increased 229.57 points or 1.10% to 21,075.00

 

  • ASX 200 decreased 116.30 points or -1.76% to 6,474.80

 

  • Kospi decreased 10.48 points or -0.43% to 2,440.93

 

  • SENSEX decreased 135.37 points or -0.26% to 51,360.42

 

  • Nifty50 decreased 67.10 points or -0.44% to 15,293.50

 

The major Asian currency markets had a mixed day today:

 

  • AUDUSD decreased 0.01097 or -1.56% to 0.69350

 

  • NZDUSD decreased 0.00529 or -0.83% to 0.63091

 

  • USDJPY increased 2.377 or 1.79% to 134.914

 

  • USDCNY increased 0.02505 or 0.37% to 6.70865

 

Precious Metals:

 

l Gold decreased 19.04 USD/t oz. or -1.03% to 1,837.67

 

l Silver decreased 0.304 USD/t. oz or -1.39% to 21.620

 

Some economic news from last night:

 

Japan:

 

BoJ Interest Rate Decision remain the same at -0.10%

 

New Zealand:

 

RBNZ Offshore Holdings (May) decreased from 53.50% to 53.40%

 

Business NZ PMI (May) increased from 51.2 to 52.9

 

Singapore:

 

Non-Oil Exports (MoM) (May) increased from -3.30% to 3.20%

 

Non-Oil Exports (YoY) (May) increased from 6.40% to 12.40%

 

Trade Balance decreased from 4.208B to 3.243B

 

Some economic news from today:

 

Hong Kong:

 

Unemployment Rate (May) decreased from 5.4% to 5.1%

 

India:

 

Bank Loan Growth increased from 12.1% to 13.1%

 

Deposit Growth remain the same at 9.3%

 

FX Reserves, USD decreased from 601.06B to 596.46B

 

EUROPE/EMEA:

 

France’s biggest lender BNP Paribas signaled to the Dutch government an interest in taking over state-owned bank ABN Amro, a person with knowledge of the matter said on Friday, adding that the Dutch finance ministry was not pursuing such a deal at this time. A combination between BNP and ABN AMRO would be the first major cross-border deal in a long-anticipated consolidation drive across Europe’s banking sector. The French lender, which has a market value of 58 billion euros, last year sold its Bank of the West U.S. retail banking unit for $16 billion, raising expectations that it might use the proceeds for acquisitions in Europe.

 

The major Europe stock markets had a mixed day:

 

l CAC 40 decreased 3.59 points or -0.06% to 5,882.65

 

l FTSE 100 decreased 28.73 points or -0.41% to 7,016.25

 

l DAX 30 increased 87.77 points or 0.67% to 13,126.26

 

The major Europe currency markets had a mixed day today:

 

  • EURUSD decreased 0.00547 or -0.52% to 1.04942

 

  • GBPUSD decreased 0.01385 or -1.12% to 1.22141

 

  • USDCHF increased 0.00383 or 0.40% to 0.97043

 

Some economic news from Europe today:

 

Italy:

 

Italian Trade Balance (Apr) decreased from -0.229B to -3.666B

 

Italian Trade Balance EU (Apr) decreased from 0.28B to -0.96B

 

Euro Zone:

 

Core CPI (MoM) (May) remain the same at 0.5%

 

Core CPI (YoY) (May) increased from 3.5% to 3.8%

 

CPI (YoY) (May) increased from 7.4% to 8.1%

 

CPI (MoM) (May) increased from 0.6% to 0.8%

 

CPI ex Tobacco (MoM) (May) increased from 0.6% to 0.8%

 

CPI ex Tobacco (YoY) (May) increased from 7.6% to 8.2%

 

HICP ex Energy & Food (YoY) (May) remain the same at 4.4%

 

HICP ex Energy and Food (MoM) (May) decreased from 1.2% to 0.7%

US/AMERICAS:

The Federal Reserve attempted to ease recession fears again this Friday amid a volatile week for markets. “The Committee’s commitment to restoring price stability, which is necessary for sustaining a strong labor market — is unconditional,” the central bank stated in a report to Congress. It is confirmed that the central bank will continue to raise rates until multiple months of declining inflation are noted. Yesterday, the Fed Chair Powell stated that he understands rate hikes may spook the markets. “We’re not trying to induce a recession now, let’s be clear about that,” Powell said on Thursday.

Retail sales contracted in May based on new data from the Commerce Department. Retail and food service spending declined -0.3% last month, well beneath estimates of a 0.1% gain. Sales, excluding autos, rose 0.5% for the month. April’s figure was revised down to reflect a 0.7% increase compared to the initially reported 0.9%. These numbers are not adjusted for inflation.

US Market Closings:

  • Dow declined 38.29 points or -0.13% to 29,888.78
  • S&P 500 advanced 8.07 points or 0.22% to 3,674.84
  • Nasdaq advanced 152.25 points or 1.43% to 10,798.35
  • Russell 2000 advanced 15.86 points or 0.96% to 1,665.69

 

Canada Market Closings:

  • TSX Composite declined 73.58 points or -0.39% to 18,930.48
  • TSX 60 declined 2.92 points or -0.25% to 1,148.51

 

Brazil Market Closing:

  • Bovespa declined 2,981.88 points or -2.9% to 99,824.94

 

ENERGY:

 

The oil markets had a negative day today:

 

l Crude Oil decreased 7.87 USD/BBL or -6.69% to 109.720

 

l Brent decreased 6.44 USD/BBL or -5.38% to 113.37

 

l Natural gas decreased 0.439 USD/MMBtu or -5.88% to 7.0250

 

l Gasoline decreased 0.1712 USD/GAL or -4.33% to 3.7846

 

l Heating oil decreased 0.1897 USD/GAL or -4.15% to 4.3816

 

The above data was collected around 15:06 EST on Friday

 

l Top commodity gainers: Lumber (4.01%), Rubber (1.61%), Cocoa (2.49%) and Lean Hogs(1.12%)

 

l Top commodity losers: Crude Oil (-6.69%), Natural Gas (-5.88%), Brent (-5.38%) and Gasoline (-4.33%)

 

The above data was collected around 15:12 EST on Friday.

 

BONDS:

 

Japan 0.225%(-2.6bp), US 2’s 3.17% (+0.071%), US 10’s 3.2407% (+4.56bps); US 30’s 3.29% (+0.051%), Bunds 1.667% (-3.6bp), France 2.2080% (-5bp), Italy 3.674% (-17.6bp), Turkey 18.77% (+0bp), Greece 4.042% (-25.9bp), Portugal 2.721% (-11.5bp); Spain 2.784% (-9.5bp) and UK Gilts 2.5000% (-1.7bp).

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