Market Talk – July 27, 2020

ASIA:

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 35.76 points or -0.16% to 22,715.85
  • Shanghai increased 8.46 points or 0.26% to 3,205.23
  • Hang Seng decreased 102.07 points or -0.41% to 24,603.26
  • ASX 200 increased 20.20 points or 0.34% to 6,044.20
  • Kospi increased 17.42 points or 0.79% to 2,217.86
  • SENSEX decreased 194.17 points or -0.51% to 37,934.73
  • Nifty50 decreased 62.35 points or -0.56% to 11,131.80

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00332 or 0.47% to 0.71399
  • NZDUSD increased 0.00376 or 0.57% to 0.66801
  • USDJPY decreased 0.73 or -0.69% to 105.39
  • USDCNY decreased 0.01398 or -0.20% to 6.99980

Precious Metals:

  • Gold increased 33.63 USD/t oz. or 1.77% to 1,934.60
  • Silver increased 1.521 USD/t. oz or 6.69% to 24.261

Some economic news from last night:

China:

Chinese Industrial profit (YoY) (Jun) increased from 6.00% to 11.50%

Chinese Industrial profit YTD (Jun) increased from -19.3% to -12.8%

Some economic news from today:

Japan:

All Industries Activity Index (MoM) increased from -7.6% to -3.5%

BoJ Core CPI (YoY) increased from 0.0% to 0.1%

Coincident Indicator (MoM) decreased from -5.5% to -6.7%

Leading Index increased from 77.7 to 78.4

Hong Kong:

Trade Balance decreased from -13.7B to -33.3B

Exports (MoM) (Jun) increased from -7.4% to -1.3%

Imports (MoM) (Jun) increased from -12.3% to -7.1%

EUROPE/EMEA:

The major Europe stock markets had a mixed day:

  • CAC 40 decreased 16.81 points or -0.34% to 4,939.62
  • FTSE 100 decreased 18.94 points or -0.31% to 6,104.88
  • DAX 30 increased 0.60 points or 0.00% to 12,838.66

The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00963 or 0.83% to 1.17516
  • GBPUSD increased 0.00813 or 0.64% to 1.28737
  • USDCHF decreased 0.00009 or -0.01% to 0.92031

Some economic news from Europe today:

France:

France Jobseekers Total decreased from 4,167.4K to 3,964.7K

Germany:

German Business Expectations (Jul) increased from 91.6 to 97.0

German Current Assessment (Jul) increased from 81.3 to 84.5

German Ifo Business Climate Index (Jul) increased from 86.3 to 90.5

 

Euro Zone:

M3 Money Supply (YoY) (Jun) increased from 8.9% to 9.2%

Loans to Non Financial Corporations (Jun) decreased from 7.3% to 7.1%

Private Sector Loans (YoY) remain the same at 3.0%

US/AMERICAS:

Biotech company Moderna (+9.15%) and National Institutes of Health announced plans to begin the largest human trial for a coronavirus vaccine. The trial will consist of 30,000 participants in the US, some of whom will receive a placebo version of the vaccination. The Biomedical Advanced Research and Development Authority provided Moderna with an additional $427 million for the next phase of this study.

Senate Republicans proposed a new coronavirus stimulus package to the tune of $1 trillion. Senate Majority Leader Mitch McConnell said that the GOP is focused on sending employees back to work and children back to school. Under the proposed HEALS Act, a number of Americans would receive another $1200 stimulus check, and unemployed Americans will receive additional unemployment assistance. The plan would decrease the current unemployment bonus to $400 from $600. Around $105 billion would be directed to education, and liability protections would be implemented to ensure schools and businesses could safely reopen. Vaccine research would receive $26 billion in additional funds, while state testing grants would receive $16 billion.

Google will permit employees to work from home until July 2021, as the coronavirus has encouraged more companies to conduct business remotely. Originally, the company had only intended to permit working remotely until the end of the current year. In a memo to employees obtained by CNN Business, Google CEO Sundar Pichai said the move “will offer the flexibility [employees] need to balance work with taking care of yourselves and your loved ones over the next 12 months.”

Toronto’s housing market is showing signs of improving as home sales and prices are on the rise. The Toronto Regional Real Estate Board reported that 8,701 homes were sold in June, only a -1.4% decrease YoY. That is an 84% increase in home sales from May. The average home price in Toronto is now C$930,869, which is an 11.9% increase from last June.

US Market Closings:

  • Dow advanced 114.88 points or 0.43% to 26,584.77
  • S&P 500 advanced 23.78 points or 0.74% to 3,239.41
  • Nasdaq advanced 173.09 points or 1.67% to 10,536.27
  • Russell 2000 advanced 17.1 points or 1.16% to 1,484.65

Canada Market Closings:

  • TSX Composite advanced 164.27 points or 1.03% to 16,161.27
  • TSX 60 advanced 8.98 points or 0.94% to 969.04

Brazil Market Closing:

  • Bovespa advanced 2,095.5 points or 2.05% to 104,477.08

ENERGY:

The oil markets had a mixed day today:

  • Crude Oil increased 0.33 USD/BBL or 0.80% to 41.6200
  • Brent increased 0.16 USD/BBL or 0.37% to 43.5000
  • Natural gas decreased 0.065 USD/MMBtu or -3.63% to 1.7280
  • Gasoline decreased 0.0087 USD/GAL or -0.68% to 1.2771
  • Heating oil increased 0.0019 USD/GAL or 0.15% to 1.2565

The above data was collected around 15:06 EST on Monday.

  • Top commodity gainers: Silver (6.69%), Sugar (6.01%), Lumber (4.78%), and Palladium (3.23%)
  • Top commodity losers: Ethanol (-2.96%), Wheat (-2.45%), Palm Oil (-3.04%), and Natural Gas (-3.63%)

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

BONDS:

Japan 0.02%(+1bp), US 2’s 0.14% (-1bps), US 10’s 0.59%(-0bps); US 30’s 1.23%(-1bps), Bunds -0.49% (-4bp), France -0.19% (-4bp), Italy 1.05% (-2bp), Turkey 11.94% (-1bp), Greece 1.11% (+5bp), Portugal 0.36% (-1bp); Spain 0.35% (-3bp) and UK Gilts 0.12% (-3bp).

 

  • French 3-Month BTF Auction increased from -0.569% to -0.565%
  • French 6-Month BTF Auction increased from -0.576% to -0.562%
  • French 12-Month BTF Auction increased from -0.564% to -0.556%
  • US 2-Year Note Auction decreased from 0.193% to 0.155%
  • US 6-Month Bill Auction remain the same at 0.130%
  • US 3-Month bill Auction decreased from 0.120% to 0.105%
  • US 5-Year Note Auction decreased from 0.330% to 0.288%