Market Talk – December 2, 2020

ASIA:

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 13.44 points or 0.05% to 26,800.98
  • Shanghai decreased 2.56 points or -0.07% to 3,449.38
  • Hang Seng decreased 35.10 points or -0.13% to 26,532.58
  • ASX 200 increased 1.70 points or 0.03% to 6,590.20
  • Kospi increased 41.65 points or 1.58% to 2,675.90
  • SENSEX decreased 37.40 points or -0.08% to 44,618.04
  • Nifty50 increased 4.70 points or 0.04% to 13,113.75

 

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00159 or 0.22% to 0.73937
  • NZDUSD decreased 0.00115 or -0.16% to 0.70571
  • USDJPY increased 0.25 or 0.24% to 104.52
  • USDCNY decreased 0.00365 or -0.06% to 6.54501

 

Precious Metals:

  • Gold increased 11.88 USD/t oz. or 0.65% to 1,826.75
  • Silver decreased 0.06 USD/t. oz or -0.25% to 23.942

 

Some economic news from last night:

Japan:

Monetary Base (YoY) increased from 16.3% to 16.5%

South Korea:

CPI (MoM) (Nov) increased from -0.6% to -0.1%

CPI (YoY) (Nov) increased from 0.1% to 0.6%

Australia:

GDP (QoQ) (Q3) increased from -7.0% to 3.3%

GDP (YoY) (Q3) increased from -6.4% to -3.8%

GDP Capital Expenditure (Q3) increased from -4.9% to -0.1%

GDP Chain Price Index (Q3) increased from -0.2% to -0.1%

GDP Final Consumption (Q3) increased from -8.1% to 5.9%

New Zealand:

Terms of Trade – Exports Prices (Q3) decreased from 2.4% to -8.3%

Terms of Trade – Exports Volume (QoQ) (Q3) increased from -7.0% to 5.6%

Terms of Trade – Imports Prices (Q3) decreased from -0.1% to -3.7%

Terms of Trade Index (QoQ) (Q3) decreased from 2.5% to -4.7%

 

Some economic news from today:

India:

M3 Money Supply increased from 12.0% to 12.5%

Japan:

Household Confidence (Nov) increased from 33.6 to 33.7

 

EUROPE/EMEA:

The major Europe stock markets had a mixed day:

  • CAC 40 increased 1.37 points or 0.03% to 5,583.01
  • FTSE 100 increased 78.66 points or 1.23% to 6,463.39
  • DAX 30 decreased 69.06 points or -0.52% to 13,313.24

 

The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00204 or 0.17% to 1.20919
  • GBPUSD decreased 0.0072 or -0.54% to 1.33500
  • USDCHF decreased 0.00345 or -0.38% to 0.89622

 

Some economic news from Europe today:

Germany:

German Retail Sales (YoY) (Oct) increased from 7.0% to 8.2%

German Retail Sales (MoM) (Oct) increased from -1.9% to 2.6%

Norway:

Current Account (Q3) increased from 2.9B to 9.9B

Swiss:

CPI (MoM) (Nov) decreased from 0.0% to -0.2%

CPI (YoY) (Nov) decreased from -0.6% to -0.7%

Spain:

Spanish Unemployment Change decreased from 49.6K to 25.3K

Italy:

Italian Monthly Unemployment Rate (Oct) increased from 9.7% to 9.8%

Euro Zone:

PPI (YoY) (Oct) increased from -2.3% to -2.0%

PPI (MoM) (Oct) remain the same at 0.4%

Unemployment Rate (Oct) decreased from 8.5% to 8.4%

US/AMERICAS:

President-elect Joe Biden announced today that he will not remove Trump-imposed tariffs on China until the two economic superpowers can develop a “coherent strategy.” Biden stated that he would like to have “our allies on the same page,” and stressed the importance of united all US allies. Trump came under fire for imposing strict tariffs on China, which China retaliated while negotiating “phase one” of the long-awaited trade deal.

The five-day holiday shopping spree from Black Friday to Cyber Monday attracted less customers this year, according to the National Retail Federation. Around 186.4 million people completed purchases during the discounted period, which was down from the 189.6 million who purchased during the same period last year. Average spending decreased around $50 YoY, with an average spending amount at $311.75.

The US-Canadian border is unlikely to open until 2021, according to new comments by Prime Minister Justin Trudeau. “Until the virus is significantly more under control everywhere around the world, we’re not going to be releasing the restrictions at the border,” Trudeau stated. The ban on non-essential travel has been in effect since March. Although there have been loopholes allowing Canadians to fly into America, the Canadian border is keeping a tighter eye on incoming travels from their southern border. Although non-essential travel is not permitted, both countries have reassured that the restrictions will not impact trade. According to Reuters. Canada delivers 75% of its good to the US monthly.

US Market Closings:

  • Dow advanced 59.87 points or 0.2% to 29,883.79
  • S&P 500 advanced 6.56 points or 0.18% to 3,669.01
  • Nasdaq declined 5.74 points or -0.05% to 12,349.37
  • Russell 2000 advanced 1.98 points or 0.11% to 1,838.03

Canada Market Closings:

  • TSX Composite advanced 61.28 points or 0.35% to 17,358.21
  • TSX 60 advanced 4.47 points or 0.43% to 1,034.43

Brazil Market Closing:

  • Bovespa advanced 478.62 points or 0.43% to 111,878.53

ENERGY:

The oil markets had a mixed day today:

  • Crude Oil increased 1.11 USD/BBL or 2.49% to 45.6600
  • Brent increased 1.07 USD/BBL or 2.26% to 48.4900
  • Natural gas decreased 0.016 USD/MMBtu or -0.56% to 2.8640
  • Gasoline increased 0.0281 USD/GAL or 2.30% to 1.2485
  • Heating oil increased 0.0251 USD/GAL or 1.86% to 1.3724

The above data was collected around  12:05 EST on Wednesday

  • Top commodity gainers: Crude Oil (2.49%), Gasoline (2.30%), Rubber (3.09%), and Oat (11.13%)
  • Top commodity losers: Palm Oil (-2.77%), Bitumen (-1.16%), Zinc (-1.24%), and Milk (-34.59%)

The above data was collected around 12:15 EST on Wednesday.

BONDS:

Japan 0.03%(+1bp), US 2’s 0.17%(-0.008%), US 10’s 0.95%(+1bps); US 30’s 1.70%(+0.026%), Bunds -0.52% (+1bp), France -0.28% (+0bp), Italy 0.60% (-4bp), Turkey 11.98% (+0bp), Greece 0.72% (+6bp), Portugal 0.07% (-1bp); Spain 0.10% (-2bp) and UK Gilts 0.35% (+0bp).

 

  • UK 10-Year Treasury Gilt Auction increased from 0.244% to 0.432%