Sunday, September 25, 2022
HomeEconomyMarket Talk – August 10, 2022

Market Talk – August 10, 2022


ASIA:

Japan ran a current account deficit for the first time in 5 months in June as rising imports eclipsed exports, data showed on Monday (Aug 8), underscoring the pressure on the economy from higher energy and raw material prices. The world’s third-largest economy posted a current account deficit of ¥132.4 billion (USD 1.4 billion) in June, government data showed, up from ¥872 billion in the same month a year earlier. The data, which marked the first monthly deficit since January, was smaller than the median forecast of a $703.8 billion deficit among economists in a Reuters poll. The current account surplus has declined for 4 fiscal years in a row until March 2022.

The major Asian stock markets had a mixed day today:

 

  • NIKKEI 225 decreased 180.63 points or -0.65% to 27,819.33

 

  • Shanghai decreased 17.41 points or -0.54% to 3,230.02

 

  • Hang Seng decreased 392.60 points or -1.96% to 19,610.84

 

  • ASX 200 decreased 37.10 points or -0.53% to 6,992.70

 

  • Kospi decreased 22.58 points or -0.90% to 2,480.88

 

  • SENSEX decreased 35.78 points or -0.06% to 58,817.29

 

  • Nifty50 increased 9.65 points or 0.06% to 17,534.75

 

The major Asian currency markets had a mixed day today:

 

  • AUDUSD increased 0.01436 or 2.06% to 0.70995

 

  • NZDUSD increased 0.01386 or 2.20% to 0.64246

 

  • USDJPY decreased 2.549 or -1.89% to 132.564

 

  • USDCNY decreased 0.03705 or -0.55% to 6.71705

 

Precious Metals:

 

l Gold increased 5.60 USD/t oz. or 0.31% to 1,799.68

 

l Silver increased 0.265 USD/t. oz or 1.29% to 20.769

 

Some economic news from last night:

 

China:

 

CPI (YoY) (Jul) increased from 2.5% to 2.7%

 

CPI (MoM) (Jul) increased from -0.2% to 0.5%

 

PPI (YoY) (Jul) decreased from 6.1% to 4.2%

 

Japan:

 

PPI (YoY) (Jul) decreased from 9.4% to 8.6%

 

PPI (MoM) (Jul) decreased from 0.9% to 0.4%

 

South Korea:

 

Unemployment Rate (Jul) remain the same at 2.9%

 

Some economic news from today:

 

India:

 

M3 Money Supply increased from 7.9% to 8.6%

 

EUROPE/EMEA:

France’s parliament on Thursday approved an anti-inflation relief package aimed at boosting citizens’ purchasing power and helping them cope with soaring consumer prices and energy costs. The package was divided into two bills. The first, specifically designed to fight inflation with a series of measures worth 20 billion euros, or about $20.4 billion, was approved by both houses of parliament on Wednesday. A second additional spending bill that allocates 44 billion euros in new spending in 2022 was approved on Thursday after lawmakers from both chambers agreed on a joint version. Inflation in France rose to 6.8 percent in July, lower than almost all other eurozone countries, Eurostat said. The country, which has a strong tourism industry, also saw growth of 0.5 percent in the second quarter, beating analysts’ expectations.

The major Europe stock markets had a green day:

 

l CAC 40 increased 33.44 points or 0.52% to 6,523.44

 

l FTSE 100 increased 18.96 points or 0.25% to 7,507.11

 

l DAX 30 increased 165.96 points or 1.23% to 13,700.93

 

The major Europe currency markets had a mixed day today:

 

  • EURUSD increased 0.01109 or 1.09% to 1.03190

 

  • GBPUSD increased 0.01676 or 1.39% to 1.22408

 

  • USDCHF decreased 0.01242 or -1.30% to 0.94108

 

Some economic news from Europe today:

 

Germany:

 

German CPI (YoY) (Jul) decreased from 7.6% to 7.5%

 

German CPI (MoM) (Jul) increased from 0.1% to 0.9%

 

German HICP (MoM) (Jul) increased from -0.1% to 0.8%

 

German HICP (YoY) (Jul) increased from 8.2% to 8.5%

 

Italy:

 

Italian CPI (MoM) (Jul) decreased from 1.2% to 0.4%

 

Italian CPI (YoY) (Jul) decreased from 8.0% to 7.9%

 

Italian CPI Ex Tobacco (MoM) (Jul) remain the same at 7.8%

 

Italian HICP (MoM) (Jul) decreased from 1.2% to -1.1%

 

Italian HICP (YoY) (Jul) decreased from 8.5% to 8.4%

US/AMERICAS:

Inflation finally displayed signs of slowing in July after the consumer price index came in at 8.5%. This is a welcome sign compared to June’s 9.1% reading, and is primarily due to the 4.6% decline in energy costs. However, shelter (+0.5%) and food (1.1%) continued to rise. Core CPI advanced 5.9% annually and 0.4% on a monthly basis.

Food costs in the US are up 10.9% over the past 12 months. The price of food has not increased this rapidly since May 1979.  Electricity remains 15.2% higher on an annual basis, while the energy index is up 32.9% YoY. One-third of CPI is composed of shelter costs, which have risen 5.7% over the past 12 months. Although overall inflation is declining, there is a long way to go before the prices stabilize.

US Market Closings:

  • Dow advanced 535.04 points or 1.63% to 33,309.45
  • S&P 500 advanced 87.65 points or 2.13% to 4,210.12
  • Nasdaq advanced 360.88 points or 2.89% to 12,854.81
  • Russell 2000 advanced 56.36 points or 2.95% to 1,969.25

 

Canada Market Closings:

  • TSX Composite advanced 307.64 points or 1.57% to 19,885.94
  • TSX 60 advanced 18.48 points or 1.56% to 1,200.24

 

Brazil Market Closing:

  • Bovespa advanced 1,584.71 points or 1.46% to 110,235.76

 

ENERGY:

 

The oil markets had a green day today:

 

l Crude Oil increased 0.9 USD/BBL or 0.99% to 91.400

 

l Brent increased 0.789 USD/BBL or 0.82% to 97.099

 

l Natural gas increased 0.1963 USD/MMBtu or 2.51% to 8.0293

 

l Gasoline increased 0.0939 USD/GAL or 3.17% to 3.0541

 

l Heating oil increased 0.0959 USD/GAL or 2.88% to 3.4297

 

The above data was collected around 12:57 EST on Wednesday

 

l Top commodity gainers: Lumber (8.86%), Gasoline(3.17%), Coffee (3.67%) and Cotton (2.98%)

 

l Top commodity losers: Rubber (-1.36%), Milk (-0.55%), Bitumen (-1.15%) and Oat (-0.52%)

 

The above data was collected around 13:07 EST on Wednesday.

 

BONDS:

 

Japan 0.189%(+2.4bp), US 2’s 3.16% (-0.124%), US 10’s 2.7626% (-3.44bps); US 30’s 3.03% (+0.027%), Bunds 0.8840% (-3.9bp), France 1.4510% (-2.7bp), Italy 2.9940% (-6.1bp), Turkey 16.07% (-12bp), Greece 3.197% (-2.3bp), Portugal 1.9390% (-1.6bp); Spain 2.02% (-1bp) and UK Gilts 1.9520% (-1.9bp).

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular