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Market Talk – July 22, 2022


ASIA:

Industry body FICCI on Thursday said India’s economy is estimated to grow 7% in the current fiscal, lower than the earlier projection of 7.4%, mainly due to the ongoing geopolitical uncertainties. FICCI’s Economic Outlook Survey (July 2022) also said the policy rate of the Reserve Bank of India is expected to touch 5.65% by the end of this fiscal.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 111.66 points or 0.40% to 27,914.66
  • Shanghai decreased 2.03 points or -0.06% to 3,269.97
  • Hang Seng increased 34.51 points or 0.17% to 20,609.14
  • ASX 200 decreased 2.80 points or -0.04% to 6,791.50
  • Kospi decreased 16.02 points or -0.66% to 2,393.14
  • SENSEX increased 390.28 points or 0.70% to 56,072.23
  • Nifty50 increased 114.20 points or 0.69% to 16,719.45

 

The major Asian currency markets had a negative day today:

  • AUDUSD decreased 0.00195 or -0.28% to 0.69106
  • NZDUSD decreased 0.00113 or -0.18% to 0.62397
  • USDJPY decreased 0.987 or -0.72% to 136.121
  • USDCNY decreased 0.00704 or -0.10% to 6.76196

 

Precious Metals:

  •  Gold  increased 5.81 USD/t oz. or 0.34% to 1,724.30
  • Silver decreased 0.289 USD/t. oz or  -1.54% to 18.550

 

Some economic news from last night:

Japan:

National Core CPI (YoY) (Jun) increased from 2.1% to 2.2%

National CPI (YoY) (Jun) decreased from 2.5% to 2.4%

Foreign Bonds Buying increased from -1,489.1B to -919.6B

Foreign Investments in Japanese Stocks decreased from 526.4B to 476.0B

National CPI (MoM) decreased from 0.3% to 0.0%

Manufacturing PMI (Jul) decreased from 52.7 to 52.2

Services PMI decreased from 54.0 to 51.2

South Korea:

PPI (YoY) (Jun) remain the same at 9.9%

PPI (MoM) (Jun) decreased from 0.7% to 0.5%

Australia:

Manufacturing PMI decreased from 56.2 to 55.7

Services PMI decreased from 52.6 to 50.4

 

 

Some economic news from today:

India :

FX Reserves, USD decreased from 580.25B to 572.71B

 

EUROPE/EMEA:

The UK inflation came in at a 40-year high of 9.4% annually in June, and pay packets are failing to keep pace, with real wages plunging and workers across sectors becoming more disgruntled. The Office for National Statistics on Tuesday reported total pay increases of 7.2% in the private sector and 1.5% in the public sector in the three months to the end of May, for an overall average of 6.2%.

The major Europe stock markets had a green day:

  • CAC 40 increased 15.71 points or 0.25% to 6,216.82
  • FTSE 100 increased 5.86 points or 0.08% to 7,276.37
  • DAX 30 increased 7.04 points or 0.05% to 13,253.68

The major Europe currency markets had a negative day today:

  • EURUSD decreased 0.00308 or -0.30% to 1.01978
  • GBPUSD decreased 0.00212 or -0.18% to 1.19801
  • USDCHF decreased 0.0032 or -0.33% to 0.96330

 

 

Some economic news from Europe today:

UK:

Composite PMI decreased from 53.7 to 52.8

Manufacturing PMI decreased from 52.8 to 52.2

Services PMI decreased from 54.3 to 53.3

Core Retail Sales (YoY) (Jun) decreased from -5.5% to -5.9%

Core Retail Sales (MoM) (Jun) increased from -1.0% to 0.4%

Retail Sales (MoM) (Jun) increased from -0.8% to -0.1%

Retail Sales (YoY) (Jun) decreased from -4.7% to -5.8%

France:

French Manufacturing PMI (Jul) decreased from 51.4 to 49.6

French S&P Global Composite PMI (Jul) decreased from 52.5 to 50.6

French Services PMI (Jul) decreased from 53.9 to 52.1

Germany:

German Composite PMI (Jul) decreased from 51.3 to 48.0

German Manufacturing PMI (Jul)  decreased from 52.0 to 49.2

German Services PMI (Jul) decreased from 52.4 to 49.2

Euro Zone:

Manufacturing PMI (Jul) decreased from 52.1 to 49.6

S&P Global Composite PMI (Jul) decreased from 52.0 to 49.4

Services PMI (Jul) decreased from 53.0 to 50.6

US/AMERICAS:

Continual shutdowns in the Port of Oakland are heightening supply chain woes across the US. The ongoing trucker protest has lasted for the duration of the week, with truckers protesting the California gig labor law, which classifies workers as employees instead of independent contractors. An estimated 450 workers have refrained from operations at the port. Reports of containers sitting idle for over two weeks are common and are likely to become more apparent as the protest continues.

Inflation in Canada has spiked to a high not seen since 1973. Canada experienced high inflation in the 70s and 80s before peaking to a high of 12.9% in 1981. The last reported 8.1% rate is cause for concern, with numerous analysts believing this figure will continue to rise despite the central bank’s aggressive rate policy. During Canada’s last extremely inflationary period in the 80s, rates rose to a high of 21%. Both the cost of borrowing and living continues to rise for Canadians, and many are hoping that the central bank can do their part to curb rampant inflation without triggering a rate-induced recession.

US Market Closings:

  • Dow declined 136.29 points or -0.43% to 31,900.61
  • S&P 500 declined 37.05 points or -0.93% to 3,961.9
  • Nasdaq declined 225.5 points or -1.87% to 11,834.11
  • Russell 2000 declined 29.81 points or -1.62% to 1,806.88

 

Canada Market Closings:

  • TSX Composite declined 79.93 points or -0.42% to 18,982.92
  • TSX 60 declined 3.95 points or -0.34% to 1,149.48

 

Brazil Market Closing:

  • Bovespa declined 108.35 points or -0.11% to 98,924.82

 

 

 

ENERGY:

The oil markets had a mixed day today:

 

  • Crude Oil decreased 1.52 USD/BBL or -1.58% to 94.820
  • Brent decreased 0.5 USD/BBL or -0.48% to 103.36
  • Natural gas increased 0.373 USD/MMBtu or 4.70% to 8.3040
  • Gasoline increased 0.0604 USD/GAL or 1.92% to 3.2099
  • Heating oil decreased 0.1363 USD/GAL or -3.80% to 3.4540
  • The above data was collected around 15:37 EST on Friday
  • Top commodity gainers: Natural Gas (4.70%), Bitumen(2.13%), Lean Hogs (2.06%) and Palladium (5.91%)
  • Top commodity losers: Oat (-8.03%), Wheat (-6.29%),  Lumber (-6.45%) and Coffee (-4.24%)

 

The above data was collected around 15:45 EST on Friday.

 

 

BONDS:

 

Japan 0.219%(-1.8bp), US 2’s 2.99% (-0.106%), US 10’s 2.7740% (-13.4bps); US 30’s 3.00% (-0.075%), Bunds 1.0380% (-18.2bp), France 1.6230% (-19.1bp), Italy 3.420% (-20.2bp), Turkey 16.82% (-11bp), Greece 3.275% (-35.6bp), Portugal 2.224% (-18.5bp); Spain 2.295% (-18.9bp) and UK Gilts 1.9410% (-10.6bp).

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