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Market Talk – February 23, 2022

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China will unveil bigger tax and fee cuts this year and step-up payments to local governments to offset their hit to revenues, Finance Minister Liu Kun said on Tuesday, amid efforts to support a slowing economy. China’s strong economic recovery from its sharp pandemic-induced slump started losing momentum in the middle of last year, weighed by debt problems in the property market and strict antivirus measures that hit consumer confidence and spending. Liu acknowledged the difficulty of increasing spending to spur the economy amid declining growth in fiscal revenues. Local governments have issued 484.4 billion yuan (US$76.48 billion) in special bonds under the 2022 advance quota of 1.46 trillion yuan, vice finance minister Xu Hongcai told the same news conference.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 closed
  • Shanghai increased 32.00 points or 0.93% to 3,489.15
  • • Hang Seng increased 140.28 points or 0.60% to 23.660.28
  • • ASX 200 increased 44.40 points or 0.62% to 7,205.70
  • • Kospi increased 12.74 points or 0.47% to 2,719.53
  • • SENSEX decreased 68.62 points or -0.12% to 57,232.06
  • • Nifty50 decreased 28.95 points or -0.17% to 17,063.25


The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.0024 or 0.33% to 0.72510
  • NZDUSD increased 0.00478 or 0.71% to 0.67859
  • USDJPY increased 0.001 or 0.00% to 115.092
  •  USDCNY decreased 0.01131 or -0.18% to 6.31159


Precious Metals:

  • Gold increased 11.87 USD/t oz. or 0.63% to 1,910.00 • Silver increased 0.438 USD/t. oz or 1.82% to 24.523


Some economic news from last night:

South Korea:

Manufacturing BSI Index (Mar) remain the same at 93 Kong Kong:

GDP (YoY) (Q4) remain the same at 4.8%

GDP (QoQ) (Q4) remain the same at 0.2%


Construction Work Done (QoQ) (Q4) increased from -1.2% to -0.4% Wage Price Index (QoQ) (Q4) increased from 0.6% to 0.7% Wage Price Index (YoY) (Q4) increased from 2.2% to 2.3% New Zealand:

RBNZ Interest Rate Decision increased from 0.75% to 1.00%


Some economic news from today


CPI (YoY) (Jan) remain the same at 4.0%




The United States is poised to unleash a wider array of sanctions against Russia if Moscow escalates the conflict in Ukraine, denying key Russian financial institutions and companies access to U.S. dollar transactions and global markets for trade, energy exports and financing. The United States, the European Union and Britain announced plans to target banks and elites while Germany halted a major gas pipeline project from Russia, which they say has amassed more than 150,000 troops near Ukraine’s borders. Moscow has denied planning an invasion. Satellite imagery over the past 24 hours shows several new troop and equipment deployments in western Russia and more than 100 vehicles at a small airfield in southern Belarus, which borders Ukraine, according to U.S. firm Maxar.

The major Europe stock markets had a mixed day:

  • CAC 40 decreased 6.93 points or -0.10% to 6,780.67
  • FTSE 100 increased 3.97 points or 0.05% to 7,498.18
  • DAX 30 decreased 61.64 points or -0.42% to 14,631.36


The major Europe currency markets had a negative day today:

  • EURUSD decreased 0.00157 or -0.14% to 1.13136
  • GBPUSD decreased 0.00333 or -0.25% to 1.35563
  • USDCHF decreased 0.00323 or -0.35% to 0.91821



Some economic news from Europe today:


GfK German Consumer Climate (Mar) decreased from -6.7 to -8.1


French Business Survey (Feb) decreased from 113 to 112


ZEW Expectations (Feb) decreased from 9.5 to 9.0 Euro Zone:

Core CPI (YoY) (Jan) decreased from 2.6% to 2.3% Core CPI (MoM) (Jan) decreased from -0.8% to -0.9% CPI (MoM) (Jan) decreased from 0.4% to 0.3% CPI (YoY) (Jan) remain the same at 5.1% CPI ex Tobacco (MoM) (Jan) decreased from 0.4% to 0.3% CPI ex Tobacco (YoY) (Jan) increased from 5.0% to 5.2% HICP ex Energy & Food (YoY) (Jan) decreased from 2.5% to 2.4% HICP ex Energy and Food (MoM) (Jan) decreased from 0.4% to -0.5%


Mortgages in the US declined last week to the lowest level since December 2019 last week after falling 13.1%, Mortgage Bankers Association (MBA). Higher mortgage rates have caused a drop in refinances as well, which declined by 15% on a weekly basis and 56% annually. The average rate for a 30-year fixed-rate mortgage now stands between 4.06% and 4.05% for loans with a 20% down payment. Separately, the S&P CoreLogic Case-Shiller Home Price Index also noted that the index reached a 34-year high in 2021. Nationally, prices rose 18.8% in 2021 compared to the 10.4% increase the year prior.

Canada has imposed the first round of sanctions against Russia, as the nation also officially acknowledges there has been an “invasion” in Ukraine.  “Let us be clear, the invasion has started,” Foreign Affairs Minister Mélanie Joly said. “Our response begins today.” All Russian Parliament members who voted in favor of recognizing the eastern territories will be sanctioned. Canadians are now prohibited from purchasing Russian sovereign debt and will be barred from dealing with Luhansk and Donetsk People’s Republic.

US Market Closings:

  • Dow declined 464.85 points or -1.38% to 33,131.76
  • S&P 500 declined 79.26 points or -1.84% to 4,225.5
  • Nasdaq declined 344.03 points or -2.57% to 13,037.49
  • Russell 2000 declined 36.08 points or -1.82% to 1,944.09


Canada Market Closings:

  • TSX Composite declined 163.65 points or -0.78% to 20,744.17
  • TSX 60 declined 10.63 points or -0.84% to 1,256.79


Brazil Market Closing:

  • Bovespa declined 884.19 points or -0.78% to 112,007.61




The oil markets had a mixed day today:


  • Crude Oil decreased 0.08 USD/BBL or -0.09% to 91.8300 • Brent decreased 0.22 USD/BBL or -0.23% to 96.6200 • Natural gas increased 0.114 USD/MMBtu or 2.53% to 4.6120 • Gasoline decreased 0.0062 USD/GAL or -0.23% to 2.7046 • Heating oil decreased 0.0145 USD/GAL or -0.51% to 2.8043


The above data was collected around 12:50 EST on Wednesday


  • Top commodity gainers: Natural Gas (2.53%) and Lumber (2.41%), Wheat (3.20%), Palladium (3.83%) • Top commodity losers: Oat (-0.59%), Feeder Cattle (-0.61%), Bitumen(-1.76%) and Lean Hogs (-3.35%)


The above data was collected around 12:56 EST on Wednesday.




Japan 0.194%(-1.5bp), US 2’s 1.59% (+0.024%), US 10’s 1.9755% (+3.13bps); US 30’s 2.27% (+0.028%), Bunds 0.222% (-2.1bp), France 0.729% (-0.8bp), Italy 1.937% (+0.3bp), Turkey 20.86% (-14bp), Greece 2.620% (+0.4bp), Portugal 1.154% (+0.1bp); Spain 1.269% (-1.5bp) and UK Gilts 1.4720% (-0.1bp).