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Market Talk – January 31, 2023

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The White House is launching a partnership with India on Tuesday that President Joe Biden hopes will help the country compete with China in military equipment, semiconductors and artificial intelligence. Washington wants to deploy more Western mobile phone networks on the subcontinent to counter China’s Huawei Technologies, welcome more Indian computer chip specialists to the United States and encourage companies from both countries to work together on military equipment such as artillery systems. Biden’s national security adviser Jake Sullivan and his Indian counterpart Ajit Doval will meet with senior officials from both countries at the White House on Tuesday to launch the US-India Critical and Emerging Technologies Initiative.


The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 106.29 points or -0.39% to 27,327.11
  • Shanghai decreased 13.65 points or -0.42% to 3,255.67
  • Hang Seng decreased 227.40 points or -1.03% to 21,842.33
  • ASX 200 decreased 5.00 points or -0.07% to 7,476.70
  • Kospi decreased 25.39 points or -1.00% to 2,425.08
  • SENSEX increased 49.49 points or 0.08% to 59,549.90
  • Nifty50 increased 13.20 points or 0.07% to 17,662.15



The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.0011 or -0.16% to 0.70480
  • NZDUSD decreased 0.00033 or -0.05% to 0.64637
  • USDJPY decreased 0.371 or -0.28% to 130.069
  • USDCNY increased 0.00107 or 0.02% to 6.75717


Precious Metals:

  • Gold increased 5.22 USD/t oz. or 0.27% to 1,927.74
  • Silver increased 0.126 USD/t. oz or 0.53% to 23.716


Some economic news from last night:


Chinese Composite PMI (Jan) increased from 42.6 to 52.9

Manufacturing PMI (Jan) increased from 47.0 to 50.1

Non-Manufacturing PMI (Jan) increased from 41.6 to 54.4


Private Sector Credit (MoM) (Dec) decreased from 0.5% to 0.3%

Retail Sales (MoM) (Dec) decreased from 1.4% to -3.9%


Jobs/applications ratio (Dec) remain the same at 1.35

Industrial Production (MoM) (Dec) decreased from 0.2% to -0.1%

Retail Sales (YoY) (Dec) increased from 2.5% to 3.8%


Some economic news from today:


Construction Orders (YoY) (Dec) increased from -9.7% to 8.5%

Household Confidence (Jan) increased from 30.3 to 31.0

Housing Starts (YoY) (Dec) decreased from -1.4% to -1.7%


Federal Fiscal Deficit (Dec) increased from 9,781.54B to 9,929.76B

Infrastructure Output (YoY) (Dec) increased from 5.7% to 7.4%

Hong Kong:

M3 Money Supply (Dec) increased from -1.1% to 0.6%





The Bank of England will review its monetary policy on Thursday in what might turn out to be a live event as investors eagerly look for signs that rate differentials with the Fed will narrow this year. While a downshift to softer rate hikes is less likely to happen this time, pound traders may seek new tweaks in forward guidance before they drive the pound out of its short-term range. The Bank of England (BoE) has raised its interest rate from nearly zero to 3.5% over the past year, applying a more aggressive hiking strategy during the second semester as the inflation rate jumped to double digits for the first time in almost half a century. Global evidence has somewhat convinced central bankers that inflation is cooling now, with the Bank of Canada signaling a pause at its current interest rate, while the Fed flagged a slowdown to a 25bps rate hike in the forthcoming meeting. The BoE, however, may not follow suit. The UK headline CPI clocked in at 10.5% y/y in December, down from 10.7% in November and 11.1% in October, but still far above the central bank’s 2.0% target, suggesting that the cost of living is still biting.


The major Europe stock markets had a mixed day:

  • CAC 40 increased 0.41 points or 0.01% to 7,082.42
  • FTSE 100 decreased 13.17 points or -0.17% to 7,771.70
  • DAX 30 increased 2.19 points or 0.01% to 15,128.27


The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00175 or 0.16% to 1.08615
  • GBPUSD decreased 0.00322 or -0.26% to 1.23198
  • USDCHF decreased 0.00682 or -0.74% to 0.91798



Some economic news from Europe today:


Retail Sales (YoY) (Dec) decreased from -1.4% to -2.8%


French Consumer Spending (MoM) (Dec) decreased from 0.6% to -1.3%

French GDP (YoY) decreased from 1.0% to 0.5%

French GDP (QoQ) (Q4) remain the same at 0.1%

French CPI (MoM) (Jan) increased from -0.1% to 0.4%

French HICP (MoM) (Jan) increased from -0.1% to 0.4%


German Retail Sales (MoM) (Dec) decreased from 1.9% to -5.3%

German Unemployment Change (Jan) decreased from -13K to -15K

German Unemployment Rate (Jan) remain the same at 5.5%

Euro Zone:

GDP (QoQ) decreased from 0.3% to 0.1%

GDP (YoY) decreased from 2.3% to 1.9%



Canada’s economy remained relatively stagnant in November based on data released by Statistics Canada on Tuesday. GDP advanced 0.1% in November 2021, which was in line with the Bank of Canada’s forecast. Analysts believe that December produced little if any growth as wholesale declines erased any retail, public sectors, or utilities gains. The central bank believes Q4 growth will come in at 1.3%, but new data indicates the reading may be closer to 1.6%. If 1.6% is accurate, Canada’s economy would have expanded 3.8% in 2022 on an annual basis, surpassing the central bank’s 3.6% forecast.

US Market Closings:

  • Dow advanced 368.95 points or 1.09% to 34,086.04
  • S&P 500 advanced 58.83 points or 1.46% to 4,076.6
  • Nasdaq advanced 190.74 points or 1.67% to 11,584.55
  • Russell 2000 advanced 46.22 points or 2.45% to 1,931.94


Canada Market Closings:

  • TSX Composite advanced 195.27 points or 0.95% to 20,767.38
  • TSX 60 advanced 11.91 points or 0.96% to 1,251.51


Brazil Market Closing:

  • Bovespa advanced 1,157.53 points or 1.03% to 113,430.54





The oil markets had a mixed day today:


  • Crude Oil increased 0.404 USD/BBL or 0.52% to 78.303
  • Brent increased 0.289 USD/BBL or 0.34% to 84.789
  • Natural gas decreased 0.0068 USD/MMBtu or -0.25% to 2.6702
  • Gasoline increased 0.0193 USD/GAL or 0.77% to 2.5251
  • Heating oil increased 0.0565 USD/GAL or 1.85% to 3.1163


The above data was collected around 11:51 EST on Tuesday


  • Top commodity gainers: Orange Juice (4.35%), Sugar (2.36%), Aluminum (2.18%) and Coffee (4.84%)
  • Top commodity losers: Palm Oil (-3.07%), Coal (-1.26%), Zinc (-1.38%) and Cheese (-6.67%)


The above data was collected around 11:59 EST Tuesday.





Japan 0.49% (+1.8bp), US 2’s 4.21% (-0.048%), US 10’s 3.5272% (-2.38bps); US 30’s 3.66% (-0.001%), Bunds 2.29% (-1.6bp), France 2.754% (-3.2bp), Italy 4.284% (-3.4bp), Turkey 10.52% (+17bp), Greece 4.339% (+3.2bp), Portugal 3.22% (-1.7bp); Spain 3.33% (-2.8bp) and UK Gilts 3.334% (-0.5bp).