Market Talk – January 10, 2023

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ASIA:

 

China suspended issuing short-term visas in South Korea and Japan on Tuesday, after announcing it would retaliate against countries that required negative COVID-19 tests from Chinese travelers. In the first retaliatory move, the Chinese embassy in South Korea suspended issuing short-term visas for South Korean visitors. It would adjust the policy subject to the lifting of South Korea’s “discriminatory entry restrictions” against China, the embassy said on its official WeChat account. The Chinese embassy in Japan later announced a similar move, saying that the mission and its consulates had suspended the issuing of visas from Tuesday. The embassy statement did not say when they would resume.

 

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 201.71 points or 0.78% to 26,175.56
  • Shanghai decreased 6.58 points or -0.21% to 3,169.51
  • Hang Seng decreased 56.88 points or -0.27% to 21,331.46
  • ASX 200 decreased 20.30 points or -0.28% to 7,131.00
  • Kospi increased 1.12 points or 0.05% to 2,351.31
  • SENSEX decreased 631.83 points or -1.04% to 60,115.48
  • Nifty50 decreased 187.05 points or -1.03% to 17,914.15

 

 

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.00267 or -0.39% to 0.68843
  • NZDUSD decreased 0.00094 or -0.15% to 0.63586
  • USDJPY increased 0.379 or 0.29% to 132.259
  • USDCNY increased 0.00795 or 0.12% to 6.78965

 

Precious Metals:

  • Gold increased 2.44 USD/t oz. or 0.13% to 1,874.03
  • Silver decreased 0.089 USD/t. oz or -0.38% to 23.538

 

Some economic news from last night:

Japan:

Household Spending (MoM) (Nov) decreased from 1.1% to -0.9%

Household Spending (YoY) (Nov) decreased from 1.2% to -1.2%

Tokyo Core CPI (YoY) (Dec) increased from 3.6% to 4.0%

CPI Tokyo Ex Food and Energy (MoM) (Dec) increased from -0.1% to 0.2%

 

Some economic news from today:

China:

New Loans (Dec) increased from 1,210.0B to 1,400.0B

M2 Money Stock (YoY) (Dec) decreased from 12.4% to 11.8%

 

 

EUROPE/EMEA:

 

Consumer price inflation in Ukraine rose to 26.6% in 2022 as the economy felt the impact of Russia’s invasion, but was lower than initially expected. The government had said CPI could soar from 10% in 2021 to about 30% because of the war, which has disrupted supply chains and logistics, but State Statistics Service figures released on Tuesday showed inflation had stabilized at 0.7% in December. The central bank has attributed the steadying of inflation to a government decision not to raise wartime utility tariffs – despite Russian attacks on energy facilities that have led to electricity shortages – and an improved supply of food products. GDP data released last week also suggested the Ukrainian economy has adapted better than initially expected to the realities of war, thanks to high levels of foreign aid and the flexibility of Ukrainian businesses.

 

The major Europe stock markets had a negative day:

  • CAC 40 decreased 38.22 points or -0.55% to 6,869.14
  • FTSE 100 decreased 30.45 points or -0.39% to 7,694.49
  • DAX 30 decreased 18.23 points or -0.12% to 14,774.60

 

The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00032 or 0.03% to 1.07312
  • GBPUSD decreased 0.00303 or -0.25% to 1.21527
  • USDCHF increased 0.00179 or 0.19% to 0.92309

 

 

Some economic news from Europe today:

UK:

BRC Retail Sales Monitor (YoY) (Dec) increased from 4.1% to 6.5%

 

US/AMERICAS:

Washington does not control the Federal Reserve. Federal Reserve Chairman Jerome Powell reiterated that message Tuesday while speaking to Sweden’s Riksbank. “The absence of direct political control over our decisions allows us to take these necessary measures without considering short-term political factors,” Powell stated. The chairman noted that price stability is “the bedrock of a healthy economy,” and must be preserved even if the decision are politically unfavorable. Additionally, he said that climate change policies will not impact the Fed’s policy. “We are not, and will not be, a ‘climate policymaker.’”

Although Powell stated that the Federal Reserve will not implement climate change policy into their decisions, the central bank launched a pilot program to see how major institutions will respond in the event of a major climate event. Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Wells Fargo, and BoA plan to implement a scenario analysis of a major climate event, which will not be part of their stress tests. “Decisions about policies to directly address climate change should be made by the elected branches of government and thus reflect the public’s will as expressed through elections,” the chairman stated.

US Market Closings:

  • Dow advanced 186.45 points or 0.56% to 33,704.1
  • S&P 500 advanced 27.16 points or 0.7% to 3,919.25
  • Nasdaq advanced 106.98 points or 1.01% to 10,742.63
  • Russell 2000 advanced 26.74 points or 1.49% to 1,822.65

 

Canada Market Closings:

  • TSX Composite advanced 41.79 points or 0.21% to 19,898.86
  • TSX 60 advanced 0.72 of a point or 0.06% to 1,198.19

 

Brazil Market Closing:

  • Bovespa advanced 1,687.14 points or 1.55% to 110,816.71

 

ENERGY:

 

The oil markets had a mixed day today:

 

  • Crude Oil increased 0.987 USD/BBL or 1.32% to 75.617
  • Brent increased 1.085 USD/BBL or 1.36% to 80.735
  • Natural gas decreased 0.2212 USD/MMBtu or -5.66% to 3.6888
  • Gasoline increased 0.0538 USD/GAL or 2.35% to 2.3467
  • Heating oil increased 0.0918 USD/GAL or 3.02% to 3.1278

 

The above data was collected around 13:48 EST on Tuesday

 

  • Top commodity gainers: Heating Oil (3.02%), Gasoline (2.35%), Sugar (2.45%) and Methanol (2.55%)
  • Top commodity losers: Natural Gas (-5.66%), Palm Oil (-3.25%), Coffee (-5.63%) and Cocoa (-3.12%)

 

The above data was collected around 13:53 EST Tuesday.

 

 

BONDS:

 

Japan 0.504% (+0.1bp), US 2’s 4.26% (+0.059%), US 10’s 3.6225% (+10.55bps); US 30’s 3.75% (+0.101%), Bunds 2.293% (+7.9bp), France 2.788% (+5.8bp), Italy 4.218% (+4bp), Turkey 8.70% (+14bp), Greece 4.379% (-7.2bp), Portugal 3.253% (+5.8bp); Spain 3.334% (+6.8bp) and UK Gilts 3.562% (+3.4bp).