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Market Talk – August 23, 2021

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A group of the most influential American business groups is urging the Biden administration to restart trade talks with China and cut tariffs on Chinese-made goods that had remained in place after the start of the trade war between the two countries. The group on Thursday in a letter asked that the Biden administration should take “swift action” to address “burdensome” tariffs. They also called on the White House to work with the Chinese government to ensure that it carries out commitments made in its trade truce with the Trump administration, sealed in early 2020.

Japan’s economy stands to gain a 1.6771 trillion Japanese Yen windfall from the Tokyo Olympic and Paralympic Games, according to Takahide Kiuchi, executive economist at Nomura Research Institute, Ltd. The estimate included factors such as revenue from the sale of officially licensed merchandise and the construction of temporary facilities for the Games. The figure was down from an earlier estimate of ¥1.8108 trillion, when the decision was made to bar overseas spectators. The absence of domestic spectators at most venues may have resulted in a ¥133.7 billion hit, including lost ticket and accommodation revenue.

The major Asian stock markets had a green day today:

  • NIKKEI 225 increased 480.99 points or 1.78% to 27,494.24
  • Shanghai increased 49.80 points or 1.45% to 3,477.13
  • Hang Seng increased 259.87 or 1.05% to 25,109.59
  • ASX 200 increased 29.00 points or 0.39% to 7,489.90
  • Kospi increased 29.70 points or 0.97% to 3,090.21
  • SENSEX increased 226.47 points or 0.41% to 55,555.79
  • Nifty50 increased 45.95 points or 0.28% to 16,496.45



The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00715 or 1.00% to 0.72090
  • NZDUSD increased 0.00545 or 0.80% to 0.68940
  • USDJPY increased 0.00500 or 0.00% to 109.78
  • USDCNY decreased 0.01699 or -0.26% to 6.48184


Precious Metals:

  • Gold increased 22.25 USD/t oz. or 1.25% to 1,803.12
  • Silver increased 0.63 USD/t. oz or 2.74% to 23.640


Some economic news from last night:


Manufacturing PMI (Aug) decreased from 53.0 to 52.4

Services PMI (Aug)  decreased from 47.4 to 43.5


Manufacturing PMI decreased from 56.9 to 51.7

Services PMI decreased from 44.2 to 43.3


Some economic news from today:


CPI (YoY) (Jul) increased from 2.4% to 2.5%



The relaxation of lockdown rules in July sparked a surge of hiring among UK firms, but staff shortages caused by the pandemic and Brexit could still undermine the recovery, the professional services group BDO reported on Monday. BDO’s latest business trends report found that the jobs market strengthened last month, as hospitality venues such as restaurants and bars were allowed to operate without Covid-related capacity limits. BDO’s employment index rose by 1.57 points, from 106.05 in June to 107.62 in July, showing the strongest pickup in hiring so far this year.

The European Central Bank won’t be able to protect governments from higher borrowing costs if inflation spikes, Bundesbank President Jens Weidmann cautioned in an interview published Sunday. Weidemann, who sits on the ECB’s Governing Council, said the European Central Bank would have to tighten its monetary policy if inflation rises sustainably. Weidmann also argued that the ECB’s emergency bond-buying under the pandemic emergency purchase program (PEPP) must come to an end once the crisis is over.


The major Europe stock markets had a green day:

  • CAC 40 increased 56.99 points or 0.86% to 6,683.10
  • FTSE 100 increased 21.12 points or 0.30% to 7,109.02
  • DAX 30 increased 44.75 points or 0.28% to 15,852.79



The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00404 or 0.35% to 1.17399
  • GBPUSD increased 0.00975 or 0.72% to 1.37210
  • USDCHF decreased 0.00382 or -0.42% to 0.91309


Some economic news from Europe today:


Composite PMI (Aug) decreased from 59.2 to 55.3

Manufacturing PMI (Aug) decreased from 60.4 to 60.1

Services PMI (Aug) decreased from 59.6 to 55.5

CBI Industrial Trends Orders (Aug) increased from 17 to 18


French Manufacturing PMI (Aug) decreased from 58.0 to 57.3

French Markit Composite PMI (Aug) decreased from 56.6 to 55.9

French Services PMI (Aug) decreased from 56.8 to 56.4


German Composite PMI (Aug) decreased from 62.4 to 60.6

German Manufacturing PMI (Aug) decreased from 65.9 to 62.7

German Services PMI (Aug) decreased from 61.8 to 61.5

Euro Zone:

Manufacturing PMI (Aug) decreased from 62.8 to 61.5

Markit Composite PMI (Aug) decreased from 60.2 to 59.5

Services PMI (Aug) decreased from 59.8 to 59.7


The Food and Drug Administration (FDA) officially approved the Pfizer (+2.53%) vaccination this Monday. This marks the first officially FDA approved coronavirus vaccination, giving Pfizer an edge over competitors. Under operation Warp Speed supported by the Trump Administration, all US manufactured coronavirus vaccinations were funded and passed for approval under the Emergency Use Authorization Act without undergoing standardized approval from the FDA. The company has already begun to  raise the price of its vaccine in Europe, and will likely raise prices for US consumers. Since the vaccine is now FDA approved, Pfizer is permitted to advertise their product as well.

Lawmakers are growing increasingly frustrated with the Biden Administration’s handling of Afghanistan, and now, some are asking the president to explain the “profound and preventable loss.” Senator Steve Daines and 24 other GOP senators are urging the current administration to explain why US military equipment was abandoned and left for the Taliban to seize. “I ask you to explain to the American taxpayer your plan for preventing this equipment from being used for terrorist acts, propaganda, and funding; and to mitigate sensitive equipment from falling into the hands of our adversaries for intelligence or reverse-engineering purposes,” Daines stated. The US sent over 600,000 arms, 76,000 vehicles, and 208 airplanes to Afghanistan between 2003 and 2016 to fund the Afghanistan military. A report by the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAP) estimated that the US spent over $83 billion on the two-decade war.

US Market Closings:

  • Dow advanced 215.63 points or 0.61% to 35,335.71
  • S&P 500 advanced 37.86 points or 0.85% to 4,479.53
  • Nasdaq advanced 227.99 points or 1.55% to 14,942.65
  • Russell 2000 advanced 40.7 points or 1.88% to 2,208.3


Canada Market Closings:

  • TSX Composite advanced 138.24 points or 0.68% to 20,477.26
  • TSX 60 advanced 5.94 points or 0.49% to 1,230.37


Brazil Market Closing:

  • Bovespa declined 581.1 points or -0.49% to 117,471.67



The oil markets had a green day today:


  • Crude Oil increased 3.42 USD/BBL or 5.50% to 65.5600
  • Brent increased 3.43 USD/BBL or 5.26% to 68.6100
  • Natural gas increased 0.063 USD/MMBtu or 1.64% to 3.9140
  • Gasoline increased 0.0899 USD/GAL or 4.44% to 2.1135
  • Heating oil increased 0.0947 USD/GAL or 4.96% to 2.0029


The above data was collected around 13:08 EST on Monday


  • Top commodity gainers: Crude Oil (5.50%) and Brent (5.26%), Heating Oil (4.96%) and Palladium (5.22 %)
  • Top commodity losers: Corn (-0.51%), Feeder Cattle (-0.31%), Cocoa (-1.82%), and Lean Hogs (-1.21%)


The above data was collected around 13:15 EST on Monday.



Japan 0.019%(+1bp), US 2’s 0.23%(+0.006%), US 10’s 1.2533%(-0bps); US 30’s 1.8735%(+0.00%),Bunds -0.4820% (+1.3bp), France -0.1350% (+1.7bp), Italy 0.5828% (+3.52bp), Turkey 16.85% (-3bp), Greece 0.5780% (+2bp), Portugal 0.129% (+1bp); Spain 0.244% (+9.49bp) and UK Gilts 0.5330% (+0.4bp).