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Market Talk – July 20, 2021

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Japan’s core consumer prices rose 0.2% in June from a year earlier to mark the fastest annual pace in over a year, data showed on Tuesday, a sign the impact of global commodity inflation was gradually broadening. The rise in the core consumer price index (CPI), which includes oil products but excludes volatile fresh food prices, matched a median market forecast for a 0.2% gain and followed a 0.1% increase in May. The increase, which was the fastest since March 2020, was due mostly to a 4.6% rise in energy costs with gasoline prices up 17.9%.


The major Asian stock markets had a negative day today:


  • NIKKEI 225 decreased 264.58 points or -0.96% to 27,388.16
  • Shanghai decreased 2.33 points or -0.07% to 3,536.79
  • Hang Seng decreased 230.53 or -0.84% to 27,259.25
  • ASX 200 decreased 33.80 points or -0.46% to 7,252.20
  • Kospi decreased 11.34 points or -0.35% to 3,232.70
  • SENSEX decreased 354.89 points or -0.68% to 52,198.51
  • Nifty50 decreased 120.30 points or -0.76% to 15,632.10


The major Asian currency markets had a mixed day today:


  • AUDUSD decreased 0.0012 or -0.16% to 0.73284


  • NZDUSD decreased 0.0018 or -0.26% to 0.69167


  • USDJPY increased 0.32 or 0.29% to 109.86


  • USDCNY decreased 0.0081 or -0.12% to 6.48619


Precious Metals:


  • Gold decreased 2.24 USD/t oz. or -0.12% to 1,810.10
  • Silver decreased 0.26 USD/t. oz or -1.01% to 24.950


Some economic news from last night:




PBoC Loan Prime Rate remain the same at 3.85%




BoJ Core CPI (YoY) increased from 0.1% to 0.2%


CPI, n.s.a (MoM) (Jun) decreased from 0.3% to 0.2%


National Core CPI (YoY) (Jun) increased from 0.1% to 0.2%


National CPI (MoM) remain the same at 0.3%


National CPI (YoY) (Jun) increased from -0.1% to 0.2%


Some economic news from today:


Hong Kong:


Unemployment Rate (Jun) decreased from 6.0% to 5.5%


New Zealand:


GlobalDairyTrade Price Index increased from -3.6% to -2.9%




A Brexit row over Gibraltar dramatically escalated on Tuesday as the UK accused Brussels of failing to negotiate in the “real world” and moving to undermine British sovereignty. At a meeting in the EU capital the bloc’s commissioners presented plans to remove checks on people and goods at the land border between Spain and Gibraltar.


The major Europe stock markets had a green day:


  • CAC 40 increased 50.88 points or 0.81% to 6,346.85


  • FTSE 100 increased 36.74 points or 0.54% to 6,881.13


  • DAX 30 increased 83.07 points or 0.55% to 15,216.27


The major Europe currency markets had a mixed day today:


  • EURUSD decreased 0.001 or -0.08% to 1.17817


  • GBPUSD decreased 0.00507 or -0.37% to 1.36192


  • USDCHF increased 0.00286 or 0.31% to 0.92150




Some economic news from Europe today:




Trade Balance (Jun) increased from 4.847B to 5.529B




German PPI (YoY) (Jun) increased from 7.2% to 8.5%


German PPI (MoM) (Jun) decreased from 1.5% to 1.3%


Euro Zone:


Current Account (May) decreased from 22.1B to 11.7B


Current Account n.s.a. (May) decreased from 31.4B to 4.3B


President Biden noted that the White House is not concerned about inflation rising through increased spending. “Reality is you can’t flip the global economic light back on and not expect this to happen. As demand returns, there’s going to be global supply chain challenges,” the president stated on Monday. Biden believes that implementing a $3.5 trillion spending plan as well as a $500 billion infrastructure plan will help prices decline. “If we make prudent, multiyear investments in better roads, bridges, transit systems and high-speed internet, a modern resilient electric grid, here’s what will happen: It breaks up the bottlenecks in our economy,” President Biden said. “These steps will enhance our productivity, raising wages without raising prices. That won’t increase inflation, it’ll take the pressure off of inflation.”

Building permits future housing construction has declined to its lowest level since August, according to the US Census Bureau. The agency found new permits to be around 100,000 beneath the six-month moving average. Both builders and potential buyers are currently priced out of the market. The average home loan amount hit an all-time high of $392,370. Materials needed for construction have reached all-time highs as of lately, and supply chain issues have added to the burden. Additionally, the US is facing a construction worker shortage as companies desperately try to recruit laborers.

US Market Closings:

  • Dow advanced 549.95 points or 1.62% to 34,511.99
  • S&P 500 advanced 64.57 points or 1.52% to 4,323.06
  • Nasdaq advanced 223.89 points or 1.57% to 14,498.88
  • Russell 2000 advanced 63.62 points or 2.99% to 2,194.3


Canada Market Closings:

  • TSX Composite advanced 216.26 points or 1.1% to 19,942.71
  • TSX 60 advanced 11.73 points or 0.99% to 1,199.32


Brazil Market Closing:

  • Bovespa advanced 1,006.79 points or 0.81% to 125,401.36




The oil markets had a green day today:


  • Crude Oil increased 1.19 USD/BBL or 1.79% to 67.6100


  • Brent increased 0.93 USD/BBL or 1.36% to 69.5500


  • Natural gas increased 0.087 USD/MMBtu or 2.30% to 3.8660


  • Gasoline increased 0.0223 USD/GAL or 1.06 % to 2.1327


  • Heating oil increased 0.0306 USD/GAL or 1.54% to 2.0158


The above data was collected around 14:15 EST on Tuesday


  • Top commodity gainers: Orange Juice (4.22%), Coffee (6.46%), Cotton (2.54%) and Cotton (2.83%)
  • Top commodity losers: Feeder Cattle (-1.37%), Steel (-2.15%), Bitumen (-2.92%), and Rubber (-2.61%)


The above data was collected around 14:22 EST on Tuesday.




Japan 0.014%(-0bp), US 2’s 0.1935%(-0.02%), US 10’s 1.2086%(+0.99bps); US 30’s 1.8675%(+0.04%), Bunds -0.4110% (-2.4bp), France -0.0620% (-2.2bp), Italy 0.6871% (-2bp), Turkey 16.74% (-7bp), Greece 0.677% (+0bp), Portugal 0.255% (+1bp); Spain 0.335% (+5.09bp) and UK Gilts 0.556% (-1bp).