Posted Apr 7, 2022 by Martin Armstrong
Indian shares fell for a third straight session on Thursday, as global sentiment soured on hawkish US Federal Reserve minutes, while investors looked forward to the Reserve Bank of India’s policy decision on Friday amid rising inflationary pressures. The NSE Nifty 50 index declined 0.6% to 17,692.70, and the S&P BSE Sensex fell 0.5% to 59,296, in line with broader Asia. Minutes of the Fed’s March meeting, released on Wednesday, showed deepening concern among policymakers that inflation had broadened through the economy and need for tighter monetary policy.
The major Asian stock markets had a negative day today: • NIKKEI 225 decreased 461.73 points or -1.69% to 26,888.57 • Shanghai decreased 46.73 points or -1.42% to 3,236.70 • Hang Seng decreased 271.54 points or -1.23% to 21,808.98 • ASX 200 decreased 47.30 points or -0.63% to 7,442.80 • Kospi decreased 39.17 points or -1.43% to 2,695.86 • SENSEX decreased 575.46 points or -0.97% to 59,034.95 • Nifty50 decreased 168.10 points or -0.94% to 17,639.55 The major Asian currency markets had a mixed day today: • AUDUSD decreased 0.00375 or -0.50% to 0.74724 • NZDUSD decreased 0.00277 or -0.40% to 0.68860 • USDJPY increased 0.068 or 0.05% to 123.883 • USDCNY increased 0.00097 or 0.02% to 6.36145 Precious Metals: • Gold increased 9.92 USD/t oz. or 0.52% to 1,935.40 • Silver increased 0.111 USD/t. oz or 0.45% to 24.541 Some economic news from last night: Japan: Foreign Bonds Buying decreased from -703.3B to -1673.7B Foreign Investments in Japanese Stocks increased from -250.7B to 543.2B Foreign Reserves (USD) (Mar) decreased from 1,384.6B to 1,356.1B Australia: Foreign Reserves (USD) (Mar) decreased from 60.0 to 56.2 Exports (MoM) (Feb) decreased from 6% to 0% Imports (MoM) (Feb) increased from -2% to 12% Private House Approvals increased from -16.3% to 16.5% Trade Balance (Feb) decreased from 11.786B to 7.457B Some economic news from today China: FX Reserves (USD) (Mar) decreased from 3.214T to 3.188T Japan: Coincident Indicator (MoM) remain the same at -0.1% Leading Index decreased from 102.5 to 100.9 Leading Index (MoM) decreased from -1.2% to -1.6% Hong Kong: Foreign Reserves (USD) (Mar) decreased from 491.10B to 481.60B EUROPE/EMEA:
British consumers’ spending on credit and debit cards rose by 6 percentage points in the week to March 31 to 4% above its pre-COVID level, weekly figures from Britain’s Office for National Statistics showed on Thursday. The weekly spending figures – based on card payment data collected by the Bank of England – are not seasonally adjusted and are often volatile. A separate measure of restaurant bookings also showed a rise of 6 percentage points, but visits to shops and recreation areas were 1% down on the week and 15% lower than before the start of the COVID-19 pandemic, the ONS said.
Annual inflation in Ireland neared an almost 40-year high of 6.7% in March, a jump from 5.6% a month earlier on the back of soaring energy prices, data from the Central Statistics Office showed on Thursday. Diesel and petrol rocketed by 46% and 35% respectively year-on-year while food prices rose by 3.1%. Prices overall were 1.9% higher than February, the fastest month-on-month rise since monthly figures were first collected in 1997. Ireland’s central bank forecast this week that price growth would peak at 7.7% in the second quarter and remain above 7% for the third quarter before declining to 5.1% in the final three months of the year. Annual Irish inflation briefly touched 7% in 2000 and was last above that level in 1984.
The major Europe stock markets had a negative day:• CAC 40 decreased 37.15 points or -0.57% to 6,461.68 • FTSE 100 decreased 35.89 points or -0.47% to 7,551.81 • DAX 30 decreased 73.54 points or -0.52% to 14,078.15 The major Europe currency markets had a negative day today: • EURUSD decreased 0.00108 or -0.10% to 1.08856 • GBPUSD decreased 0.00105 or -0.08% to 1.30575 • USDCHF decreased 0.00001 or 0.00% to 0.93338 Some economic news from Europe today: Swiss: Unemployment Rate n.s.a. (Mar) decreased from 2.5% to 2.4% Unemployment Rate s.a. (Mar) decreased from 2.3% to 2.2% UK: Halifax House Price Index (YoY) increased from 10.8% to 11.0% Halifax House Price Index (MoM) (Mar) increased from 0.8% to 1.4% Labour Productivity (Q4) increased from -4.4% to 0.7% Germany: German Industrial Production (MoM) (Feb) decreased from 1.4% to 0.2% France: French Reserve Assets Total (Mar) increased from 232,616.0M to 235,521.0M Euro Zone: Retail Sales (YoY) (Feb) decreased from 8.4% to 5.0% Retail Sales (MoM) (Feb) increased from 0.2% to 0.3% US/AMERICAS:
The US labor market is strengthening based on data from the Labor Department. Jobless claims last week fell to the lowest level since November 1968 after coming in at 166,000. This marks a decline of 5,000 from the week prior. However, there are five million more employment openings than available workers, presenting an ongoing problem and contributing to the wage-price spiral. Continuing claims actually rose to 1.52 million.
The White House implemented more sanctions on Russia this Thursday that could have a larger impact on the US economy. The US removed its most favored nation trading status for Russia. Going a step forward, US Congress has voted to prohibit gas, oil, and coal imports from Russia. President Biden is expected to shortly sign the sanctions into law. The short and long-term effects of the ban on Russian energy will likely cause a larger aftershock to the US economy.
US Market Closings:
- Dow advanced 87.06 points or 0.25% to 34,583.57
- S&P 500 advanced 19.06 points or 0.43% to 4,500.21
- Nasdaq advanced 8.48 points or 0.06% to 13,897.3
- Russell 2000 declined 7.14 points or -0.35% to 2,009.8
Canada Market Closings:
- TSX Composite advanced 46.29 points or 0.21% to 21,834.89
- TSX 60 advanced 0.73 of a point or 0.06% to 1,323.03
Brazil Market Closing:
- Bovespa advanced 634.37 points or 0.54% to 118,862.12
ENERGY: The oil markets had a mixed day today: • Crude Oil decreased 1.33 USD/BBL or -1.38% to 94.890 • Brent decreased 1.59 USD/BBL or -1.57% to 99.48 • Natural gas increased 0.238 USD/MMBtu or 3.95% to 6.2670 • Gasoline decreased 0.0348 USD/GAL or -1.14% to 3.0114 • Heating oil decreased 0.1296 USD/GAL or -3.87% to 3.2156 The above data was collected around 12:38 EST on Thursday • Top commodity gainers: Natural Gas (3.95%) and Coal (1.96%), Soybeans(1.74%), Palladium (1.67%) • Top commodity losers: Lumber(-3.05%), Zinc (-1.99%), Brent(-1.57%) and Heating Oil (-3.87%) The above data was collected around 12:44 EST on Thursday. BONDS: Japan 0.24%(+0.1bp), US 2’s 2.46% (-0.022%), US 10’s 2.6484% (+5.09bps); US 30’s 2.69% (+0.069%), Bunds 0.676% (+2.8bp), France 1.228% (+5.4bp), Italy 2.337% (+3.3bp), Turkey 24.68% (+0bp), Greece 2.816% (+3.7bp), Portugal 1.637% (+5.8bp); Spain 1.687% (+5bp) and UK Gilts 1.720% (+1.5bp).