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Market Talk – June 24, 2022

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A shortage of cash dollars and forward market intervention by the Reserve Bank of India which has pushed onshore 1-year forward premiums to their lowest levels in more than a decade could pressure the rupee to new lows, traders and analysts said. The one-year annualized forward premium stood at 2.91% at 0830 GMT, compared to its close of 2.82% on Wednesday. It had touched a low of 2.80% in the previous session, its lowest level since Nov. 25, 2011. On Wednesday, the rupee touched a record low of 78.39 against the dollar despite a sharp fall in global crude oil prices, pushing forward premiums down. The rupee was trading at 78.34/35 on Thursday.

The major Asian stock markets had a green day today:


  • NIKKEI 225 increased 320.72 points or 1.23% to 26,491.97


  • Shanghai increased 29.60 points or 0.89% to 3,349.75


  • Hang Seng increased 445.19 points or 2.09% to 21,719.06


  • ASX 200 increased 50.30 points or 0.77% to 6,578.70


  • Kospi increased 52.28 points or 2.26% to 2,366.60


  • SENSEX increased 462.26 points or 0.88% to 52,727.98


  • Nifty50 increased 142.60 points or 0.92% to 15,699.25


The major Asian currency markets had a mixed day today:


  • AUDUSD increased 0.00482 or 0.70% to 0.69531


  • NZDUSD increased 0.0049 or 0.78% to 0.63230


  • USDJPY increased 0.282 or 0.21% to 135.114


  • USDCNY decreased 0.0191 or -0.29% to 6.68040


Precious Metals:


l Gold increased 4.83 USD/t oz. or 0.27% to 1,827.26


l Silver increased 0.248 USD/t. oz or 1.19% to 21.183


Some economic news from last night:




CPI, n.s.a (MoM) (May) decreased from 0.4% to 0.3%


National Core CPI (YoY) (May) remain the same at 2.1%


National CPI (YoY) (May) remain the same at 2.5%


Corporate Services Price Index (CSPI) (YoY) increased from 1.7% to 1.8%


Some economic news from today:




Industrial Production (MoM) (May) increased from 2.1% to 10.9%


Industrial Production (YoY) (May) increased from 6.4% to 13.8%




FX Reserves, USD decreased from 596.46B to 590.59B



European retail stocks fell on Friday to their lowest level since the onset of the COVID-19 pandemic in 2020, hit by a profit warning from online fashion retailer Zalando and data showing consumer confidence in Britain has hit a record low. The STOXX 600 retail sector, poised for its fourth consecutive week of declines, hit its lowest level since March 2020. It was last down 1.4%, heavily underperforming the broader market, which was up 1.14% on the day. European retail stocks have lost more than a third of their value since the beginning of the year. Data on Friday showed British consumers cut back on shopping in May in the face of fast-rising inflation, and a measure of their confidence sank to a record low this month.

The major Europe stock markets had a green day:


l CAC 40 increased 190.02 points or 3.23% to 6,073.35


l FTSE 100 increased 188.36 points or 2.68% to 7,208.81


l DAX 30 increased 205.54 points or 1.59% to 13,118.13


The major Europe currency markets had a mixed day today:


  • EURUSD increased 0.00177 or 0.17% to 1.05406


  • GBPUSD increased 0.00066 or 0.05% to 1.22711


  • USDCHF decreased 0.00424 or -0.44% to 0.95686


Some economic news from Europe today:




CBI Distributive Trades Survey (Jun) decreased from -1 to -5


Core Retail Sales (MoM) (May) decreased from 0.2% to -0.7%


Core Retail Sales (YoY) (May) increased from -6.9% to -5.7%


Retail Sales (YoY) (May) increased from -5.7% to -4.7%


Retail Sales (MoM) (May) decreased from 0.4% to -0.5%




Spanish GDP (QoQ) (Q1) decreased from 2.2% to 0.2%


Spanish GDP (YoY) (Q1) increased from 5.5% to 6.3%




Italian Business Confidence (Jun) increased from 109.4 to 110.0


Italian Consumer Confidence (Jun) decreased from 102.7 to 98.3


Italian Trade Balance Non-EU (May) increased from -2.71B to -0.64B




German Business Expectations (Jun) decreased from 86.9 to 85.8


German Current Assessment (Jun) decreased from 99.6 to 99.3


German Ifo Business Climate Index (Jun) decreased from 93.0 to 92.3


US consumer sentiment dropped to a record low this month due to rising inflation concerns. The Surveys of Consumers reading was 50, beneath the 50.2 released two weeks ago. This marks a 14.4% drop in June from May, the lowest level since the agency began collecting data in November 1952. Consumers are predicting inflation to run at 5.3% this year, well above the Fed’s 2% target and the current rate of inflation in every sector.

As of today, abortion is no longer a constitutional right in the United States. The Supreme Court rules 6-3 on their decision to repeal the Roe v Wade case first established in 1973. The decision will now be passed on to individual states who will have the ability to vote on the topic. “The Constitution makes no reference to abortion, and no such right is implicitly protected by any constitutional provision, including the one on which the defenders of Roe and Casey now chiefly rely — the Due Process Clause of the Fourteenth Amendment,” Justice Samuel Alito wrote.

US Market Closings:

  • Dow advanced 826.35 points or 2.69% to 32,503.71
  • S&P 500 advanced 116.42 points or 3.07% to 3,912.15
  • Nasdaq advanced 375.43 points or 3.34% to 11,607.63
  • Russell 2000 advanced 54.06 points or 3.16% to 1,765.74


Canada Market Closings:

  • TSX Composite advanced  54.06 pointd or 3.26% o 19,063.92
  • TSX 60 advanced 19,27 points or 1.69% to 1,58.26


Brazil Market Closing:

  • Bovedpsa advanced 591.92 points or 0.6% to 83,605.64




The oil markets had a mixed day today:


  • Crude Oil increased 3.01 USD/BBL or 2.89% to 107.280


  • Brent increased 2.74 USD/BBL or 2.49% to 112.79


  • Natural gas decreased 0.081 USD/MMBtu or -1.30% to 6.1550


  • Gasoline increased 0.041 USD/GAL or 1.09% to 3.8066


  • Heating oil increased 0.0076 USD/GAL or 0.18% to 4.3455


The above data was collected around 12:12 EST on Friday


l Top commodity gainers: Crude Oil (2.89%), Brent (2.49%), Lean Hogs (1.93%) and Palladium (1.73%)


l Top commodity losers: Palm Oil (-1.69%), Zinc (-3.87%), Coffee (-2.58%) and Cotton (-15.27%)


The above data was collected around 12:21 EST on Friday.




Japan 0.230%(-0.5bp), US 2’s 3.04% (+0.028%), US 10’s 3.1207% (+3.19bps); US 30’s 3.25% (+0.047%), Bunds 1.440% (+1.3bp), France 1.9630% (-0.8bp), Italy 3.563% (+7.9bp), Turkey 18.66% (-31bp), Greece 3.781% (+2.2bp), Portugal 2.531% (+2.9bp); Spain 2.541% (+1.6bp) and UK Gilts 2.3050% (-1.1bp).