Market Talk – April 25, 2022

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Stocks in Hong Kong slumped and those in mainland China tumbled by the most in more than two years as Covid-19 outbreak spread to Beijing with some areas in the capital coming under lockdown, heightening economic losses. The Hang Seng Index sank 3.7 percent to 19,869.34 at the close, its lowest level since March 15, while the Hang Seng Tech Index plunged 4.9 per cent. The Shanghai Composite Index retreated 5.1 percent to 2,928.51, the steepest sell-off since February 2020 as the financial hub reported record fatalities overnight. In Shenzhen, the Component Index plunged 6.1 per cent while the nation’s currency weakened to a one-year low of 6.553 per US dollar.

Britain and India agreed on to step up defence and business cooperation during a visit to New Delhi by Boris Johnson, who said a bilateral free-trade deal could be wrapped up by October. On his first visit to the Indian capital as UK prime minister, Johnson discussed with his Indian counterpart Narendra Modi ways to boost security ties with India, which buys more than half of its military hardware from Russia. Johnson said Britain would support India’s goal of building its own fighter jets, to reduce expensive imports of military equipment. India now has a mix of Russian, British and French fighter jets.

The major Asian stock markets had a negative day today:• NIKKEI 225 decreased 514.48 points or -1.90% to 26,590.78• Shanghai decreased 158.41 points or -5.13% to 2,928.51• Hang Seng decreased 769.18 points or -3.73% to 19,869.34• ASX 200 closed• Kospi decreased 47.58 points or -1.76% to 2,657.13• SENSEX decreased 617.26 points or -1.08% to 56,579.89• Nifty50 decreased 218.00 points or -1.27% to 16,953.95The major Asian currency markets had a mixed day today:• AUDUSD decreased 0.00796 or -1.10% to 0.71639• NZDUSD decreased 0.00256 or -0.39% to 0.66090• USDJPY   decreased 0.685 or -0.53% to 127.845• USDCNY  increased 0.04448 or 0.68% to 6.57052Precious Metals:• Gold decreased 33.01 USD/t oz. or -1.71% to 1,896.72• Silver decreased 0.541 USD/t. oz or -2.24% to 23.599Some economic news from last night:Japan:Corporate Services Price Index (CSPI) (YoY) increased from 1.1% to 1.3%Some economic news from todayJapan:Coincident Indicator (MoM) increased from -0.1% to 0.5%Leading Index decreased from 101.2 to 100.0Leading Index (MoM) increased from -1.6% to -1.2%Singapore:CPI (YoY) (Mar) increased from 4.3% to 5.4%EUROPE/EMEA:

Britain’s economy is heading for a slowdown, or possibly even a recession, as consumers and businesses are hit by the leap in inflation, higher taxes, rising interest rates and uncertainty caused by the war in Ukraine. Bank of England Governor Andrew Bailey said on Thursday the BoE was walking a tight line between tackling inflation and avoiding a recession. The consumer price index jumped to 7% in the 12 months to March, a 30-year high, and is set to go higher in April when big hikes in power tariffs kicked in. The government’s budget forecasters said in March that inflation could touch almost 9% later this year, depending on energy prices.

Emmanuel Macron has won France’s presidential election, fending off a historic challenge from far-right candidate Marine Le Pen during Sunday’s runoff vote. Macron took 58.5% of Sunday’s vote, making him the first French leader to be reelected in 20 years. He and Le Pen advanced to the runoff after finishing in first and second place, respectively, among 12 candidates who ran in the first round on April 10. Le Pen’s performance is the latest indication that the French public is turning to extremist politicians to voice their dissatisfaction with the status quo. In the first round, far-left and far-right candidates accounted for more than 57% of the ballots cast.

The major Europe stock markets had a negative day:• CAC 40 decreased 132.04 points or -2.01% to 6,449.38• FTSE 100 decreased 141.14 points or -1.88% to 7,380.54• DAX 30 decreased 217.92 points or -1.54% to 13,924.17The major Europe currency markets had a mixed day today:• EURUSD decreased 0.0084 or -0.78% to 1.07140• GBPUSD decreased 0.01019 or -0.79% to 1.27351• USDCHF increased 0.00246 or 0.26% to 0.95936Some economic news from Europe today:Spain:Spanish PPI (YoY) increased from 41.2% to 46.6%Germany:German Business Expectations (Apr) increased from 84.9 to 86.7German Current Assessment (Apr) increased from 97.1 to 97.2German Ifo Business Climate Index (Apr) increased from 90.8 to 91.8Euro Zone:Construction Output (MoM) (Feb) decreased from 3.87% to 1.86%UK:CBI Industrial Trends Orders (Apr) decreased from 26 to 14US/AMERICAS:

US Secretary of State Anthony Blinken ha claimed that Russia “already failed.” The US recently donated an additional $700 million to help Ukraine expel Russia after nearly three months of war. Blinken also noted that the US will consider selling $165 million of military equipment to Ukraine.

Twitter jumped 5% in premarket trading as it was announced that Elon Musk and Twitter may be close on closing a deal. At the time of this writing, it has been confirmed that Musk will purchase the social media giant for $43 billion in cash. Musk will be purchasing Twitter personally and not through his companies. Twitter could announce a $54.20 per share deal later in the day at the recommendation of the board. Musk said his ultimate goal is to take the company private to promote free speech.

US Market Closings:

  • Dow advanced 238.06 points or 0.7% to 34,049.46
  • S&P 500 advanced 24.34 points or 0.57% to 4,296.12
  • Nasdaq advanced 165.56 points or 1.29% to 13,004.85
  • Russell 2000 advanced 13.54 points or 0.7% to 1,954.2


Canada Market Closings:

  • TSX Composite declined 174.49 points or -0.82% to 21,011.89
  • TSX 60 declined 10.99 points or -0.86% to 1,270.88


Brazil Market Closing:

  • Bovespa declined 392.56 points or -0.35% to 110,684.95

ENERGY:The oil markets had a mixed day today:• Crude Oil decreased 4.91 USD/BBL or -4.81% to 97.160• Brent decreased 5.75 USD/BBL or -5.39% to 100.90• Natural gas increased 0.117 USD/MMBtu or 1.79% to 6.6490• Gasoline decreased 0.1038 USD/GAL or -3.14% to 3.2012• Heating oil increased 0.0947 USD/GAL or 2.40% to 4.0333The above data was collected around 14:15 EST on Monday   • Top commodity gainers: Natural Gas (1.79%) and Coal (0.77%),  Corn(0.82%),  Heating Oil (2.40%)• Top commodity losers: Rubber(-6.20%), Methanol (-6.80%), Zinc (-5.45%) and Palladium (-9.60%)The above data was collected around 14:22 EST on Monday.BONDS: Japan 0.255%(+1bp), US 2’s 2.60% (-0.075%), US 10’s 2.8140% (-9.05bps); US 30’s 2.90% (-0.055%), Bunds 0.853% (-11bp), France 1.327% (-10bp), Italy 2.576% (-10bp), Turkey 20.77% (+5bp), Greece 2.974% (+0.1bp), Portugal 1.898% (-9.9bp); Spain 1.877% (-6.7bp) and UK Gilts 1.846% (-11.8bp).