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Market Talk – August 31, 2022


ASIA:

India’s economy grew 13.5% from a year ago in the April-June quarter, its fastest annual pace in a year, data released on Wednesday showed, though it is seen losing momentum in coming quarters as higher interest rates cool economic activity. June quarter growth, driven by manufacturing and services, such as accommodation and travel, rebounding from pandemic restrictions, came below a 15.2% forecast by economists in a Reuters poll, but well above 4.1% growth in the previous quarter. Consumer spending, which accounts for nearly 55% of India’s economic activity, has been hit hard by soaring food and fuel prices, though monthly inflation has moderated in the past three months.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 104.05 points or -0.37% to 28,091.53
  • Shanghai decreased 25.08 points or -0.78% to 3,202.14
  • Hang Seng increased 5.36 points or 0.03% to 19,954.39
  • Kospi increased 21.12 points or 0.86% to 2,472.05
  • ASX 200 decreased 11.50 points or -0.16% to 6,986.80
  • SENSEX closed
  • Nifty50 closed

 

 

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00140 or 0.20% to 0.68645
  • NZDUSD increased 0.00120 or 0.19% to 0.61388
  • USDJPY decreased 0.149 or -0.11% to 138.641
  • USDCNY decreased 0.02700 or -0.39% to 6.89555

 

Precious Metals:

Gold decreased 2.17 USD/t oz. or -0.13% to 1,721.38

Silver decreased 0.362 USD/t. oz or -1.96% to 18.128

 

Some economic news from last night:

China:

Chinese Composite PMI (Aug) decreased from 52.5 to 51.7

Manufacturing PMI (Aug) increased from 49.0 to 49.4

Non-Manufacturing PMI (Aug) decreased from 53.8 to 52.6

Japan:

Industrial Production (MoM) (Jul) decreased from 8.9% to 1.0%

Industrial Production forecast 1m ahead (MoM) (Aug) increased from 3.8% to 5.5%

Industrial Production forecast 2m ahead (MoM) (Sep) decreased from 6.0% to 0.8%

Large Retailers’ Sales (MoM) increased from -1.3% to 0.8%

Retail Sales (YoY) (Jul) increased from 1.5% to 2.4%

South Korea:

Industrial Production (MoM) (Jul) decreased from 1.7% to -1.3%

Industrial Production (YoY) (Jul) increased from 1.3% to 1.5%

Retail Sales (MoM) increased from -1.0% to -0.3%

Australia:

Construction Work Done (QoQ) (Q2) decreased from -0.3% to -3.8%

Housing Credit (Jul) decreased from 0.6% to 0.5%

Private Sector Credit (MoM) (Jul) decreased from 0.9% to 0.7%

New Zealand:

ANZ Business Confidence (Aug) increased from -56.7 to -47.8

NBNZ Own Activity (Aug) increased from -8.7% to -4.0%

Building Consents (MoM) (Jul) increased from -2.3% to 5.0%

Some economic news from today:

Japan:

Construction Orders (YoY) (Jul) decreased from 15.5% to 2.8%

Household Confidence (Aug) increased from 30.2 to 32.5

Housing Starts (YoY) (Jul) decreased from -2.2% to -5.4%

India:

Federal Fiscal Deficit (Jul) decreased from 3,518.71B to 3,408.31B

GDP Quarterly (YoY) (Q1) increased from 4.1% to 13.5%

Infrastructure Output (YoY) (Jul) decreased from 13.2% to 4.5%

Hong Kong:

M3 Money Supply (Jul) increased from -2.8% to 1.2%

Retail Sales (YoY) (Jul) increased from -1.2% to 4.1%

 

EUROPE/EMEA:

The UK unemployment rate rose 0.1 percentage point to 3.8% in the second quarter of the year, in line with market expectations, official data showed on Tuesday. The number of job vacancies fell by 19,800 to 1.2 million between May and July from the previous quarter. It was the first quarterly decline since June-August 2020. Meanwhile, the employment rate for people aged 16-64 fell by 0.1 percentage point in the quarter to 75.5% and is still below pre-coronavirus levels. The number of people in employment increased by 160,000 in April-June, less than the market expected a rise of 256,000.

The major Europe stock markets had a negative day:

CAC 40 decreased 85.12 points or -1.37% to 6,125.10

FTSE 100 decreased 77.48 points or -1.05% to 7,284.15

DAX 30 decreased 126.18 points or -0.97% to 12,834.96

The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00528 or 0.53% to 1.00648
  • GBPUSD decreased 0.00155 or -0.13% to 1.16395
  • USDCHF increased 0.00056 or 0.06% to 0.97446

 

Some economic news from Europe today:

Italy:

Italian CPI (MoM) (Aug) increased from 0.4% to 0.8%

Italian CPI (YoY) (Aug) increased from 7.9% to 8.4%

Italian HICP (MoM) (Aug) increased from -1.1% to 0.8%

Italian HICP (YoY) (Aug) increased from 8.4% to 9.0%

Italian PPI (YoY) (Jul) increased from 34.1% to 36.9%

Italian PPI (MoM) (Jul) increased from 1.0% to 5.0%

Germany:

German Import Price Index (MoM) (Jul) increased from 1.0% to 1.4%

German Import Price Index (YoY) (Jul) decreased from 29.9% to 28.9%

German Unemployment Change (Aug) decreased from 45K to 28K

German Unemployment Rate (Aug) increased from 5.4% to 5.5%

German Unemployment (Aug) increased from 2.469M to 2.497M

German Unemployment n.s.a. (Aug) increased from 2.470M to 2.550M

France:

French Consumer Spending (MoM) (Jul) decreased from 0.1% to -0.8%

French CPI (MoM) increased from 0.3% to 0.4%

French CPI (YoY) decreased from 6.1% to 5.8%

French GDP (QoQ) (Q2) remain the same at 0.5%

French HICP (MoM) increased from 0.3% to 0.4%

French HICP (YoY) decreased from 6.8% to 6.5%

French PPI (MoM) (Jul) increased from 1.3% to 1.6%

Euro Zone:

Core CPI (MoM) increased from 0.1% to 0.5%

Core CPI (YoY) increased from 4.0% to 4.3%

CPI (YoY) (Aug) increased from 8.9% to 9.1%

CPI (MoM) increased from 0.1% to 0.5%

CPI, n.s.a (Aug) increased from 117.14 to 117.78

HICP ex Energy & Food (YoY) (Aug) increased from 5.1% to 5.5%

HICP ex Energy and Food (MoM) increased from 0.2% to 0.6%

US/AMERICAS:

The ADP National Employment report showed a slowdown in the US labor force, which may be a good thing. Companies incorporated only 132,000 new positions last month, far off the 288,000 advancement many were expected. August’s figure also is a notable slowdown from July when the economy added 270,000 positions, and the lowest reading since May’s 128,000 reading. The Federal Reserve has repeatedly said a decline in employment was necessary for inflation to wane. The Labor Department’s unreleased report will be what the central banks and markets rely on as a more accurate indication of the current labor force health.

US Market Closings:

  • Dow declined 280.44 points or -0.88% to 31,510.43
  • S&P 500 declined 31.16 points or -0.78% to 3,955
  • Nasdaq declined 66.93 points or -0.56% to 11,816.2
  • Russell 2000 declined 11.48 points or -0.62% to 1,844.12

 

Canada Market Closings:

  • TSX Composite declined 182.09 points or -0.93% to 19,330.81
  • TSX 60 declined 12.2 points or -1.04% to 1,166.33

 

Brazil Market Closing:

  • Bovespa declined 907.76 points or -0.82% to 109,522.88

 

 

ENERGY:

The oil markets had a negative day today:

 

Crude Oil decreased 1.112 USD/BBL or -1.21% to 90.528

Brent decreased 2.688 USD/BBL or -2.71% to 96.622

Natural gas decreased 0.045 USD/MMBtu or -0.50% to 8.9970

Gasoline decreased 0.0821 USD/GAL or -3.05% to 2.6123

Heating oil decreased 0.112 USD/GAL or -2.93% to 3.7051

The above data was collected around 11:35 EST on Wednesday

Top commodity gainers: Wheat (1.84%), Lumber (0.89%), Soda Ash (0.77%) and Rice (1.00%)

Top commodity losers: Oat (-3.48%), Gasoline (-3.05%), Brent (-2.71%) and Heating Oil (-2.93%)

 

The above data was collected around 11:44 EST on Wednesday.

 

BONDS:

 

Japan 0.225%(+0bp), US 2’s 3.44% (-0.024%), US 10’s 3.1212% (+1.12bps); US 30’s 3.23% (+0.014%), Bunds 1.536% (+2.6bp), France 2.154% (+3bp), Italy 3.8840% (+7.2bp), Turkey 12.63% (-31bp), Greece 4.097% (+8.7bp), Portugal 2.651% (+3.9bp); Spain 2.736% (+4.1bp) and UK Gilts 2.8030% (+9.9bp).

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