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Market Talk – June 27, 2022

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China’s economy showed some improvement in June as Covid restrictions were gradually eased, although the recovery remains muted. Economic activity picked up in June after financial hub Shanghai lifted its lockdown, allowing businesses to restart and most residents to leave their homes. That can be seen in a rebound in small business confidence, which started growing again after contracting for two months. A survey of more than 500 smaller firms showed that “demand and production recovered strongly among manufacturing,” and export-oriented smaller firms outperformed, according to Hunter Chan and Ding Shuang, economists at Standard Chartered Plc.

India’s economy gathered momentum in May driven by pent up demand for services and higher output from industries as reopening continued from pandemic restrictions. The upturn was fueled by an expansion in services activity and a robust growth in core infrastructure industries. However, an unprecedented rise in input prices, due in part to Russia’s invasion of Ukraine and persistent demand-supply imbalances, may spoil sentiment going forward.


The major Asian stock markets had a green day today:


  • NIKKEI 225 increased 379.30 points or 1.43% to 26,871.27


  • Shanghai increased 29.44 points or 0.88% to 3,379.19


  • Hang Seng increased 510.46 points or 2.35% to 22,229.52


  • ASX 200 increased 127.30 points or 1.94% to 6,706.00


  • Kospi increased 35.32 points or 1.49% to 2,401.92


  • SENSEX increased 433.30 points or 0.82% to 53,161.28


  • Nifty50 increased 132.80 points or 0.85% to 15,832.05


The major Asian currency markets had a mixed day today:


  • AUDUSD decreased 0.0018 or -0.26% to 0.69235


  • NZDUSD decreased 0.00133 or -0.21% to 0.63007


  • USDJPY increased 0.235 or 0.17% to 135.410


  • USDCNY increased 0.00961 or 0.14% to 6.69221


Precious Metals:


l Gold decreased 3.46 USD/t oz. or -0.19% to 1,822.72


l Silver increased 0.051 USD/t. oz or 0.24% to 21.161


Some economic news from last night:




Chinese Industrial profit (YoY) (May) increased from -8.50% to -6.50%


Chinese Industrial profit YTD (May) decreased from 3.5% to 1.0%


Some economic news from today:




Coincident Indicator (MoM) (May) decreased from 0.5% to 0.0%


Leading Index (MoM) remain the same at 2.1%


Leading Index increased from 100.8 to 102.9


Hong Kong:


Exports (MoM) (May) decreased from 1.1% to -1.4%


Imports (MoM) (May) decreased from 2.1% to 1.3%


Trade Balance decreased from -36.6B to -36.7B



Petrol prices hit fresh record highs at UK forecourts over the weekend, adding to the cost-of-living squeeze. The average price of a litre of petrol rose to 191.05p on Sunday, data from Experian Catalyst shows. The UK’s competition authorities are currently conducting a “swift high-level review of competition in the fuel retail market,” after business secretary Kwasi Kwarteng called for an inquiry into the sector.


The major Europe stock markets had a mixed day:


l CAC 40 decreased 26.04 points or -0.43% to 6,047.31


l FTSE 100 increased 49.51 points or 0.69% to 7,258.32


l DAX 30 increased 67.94 points or 0.52% to 13,186.07


The major Europe currency markets had a mixed day today:


  • EURUSD increased 0.00421 or 0.40% to 1.05910


  • GBPUSD increased 0.00037 or 0.03% to 1.22776


  • USDCHF decreased 0.00221 or -0.23% to 0.95559


Some economic news from Europe today:




Spanish PPI (YoY) decreased from 45.0% to 43.6%




France Jobseekers Total decreased from 2,955.0K to 2,933.0K


Pending home sales in the US rose 0.7% from April to May, according to the National Association of Realtors. This is the first month of the year that indicates a rise in demand, despite sales in May declining 13.6% on an annual basis. Available homes rose 21% from a year ago, but they are much less affordable with higher lending rates and a 17% YoY increase in the median listing price.

President Joe Biden said the US government will spend $200 billion within the next five years to compete with China’s influence over the solar panel market. Additional G7 members committed $400 to the initiative, which will partner with the Partnership for Global Infrastructure and Investment to provide federal funds and private sector investments to finance global initiatives. The US will also cease tariffs on Chinese solar panel imports for the next 24 months to boost imports for domestic manufacturers.

US Market Closings:

  • Dow declined 62.42 points or -0.2% to 31,438.26
  • S&P 500 declined 11.63 points or -0.3% to 3,900.11
  • Nasdaq declined 83.07 points or -0.72% to 11,524.55
  • Russell 2000 advanced 6.01 points or 0.34% to 1,771.74


Canada Market Closings:

  • TSX Composite advanced 195.41 points or 1.03% to 19,258.32
  • TSX 60 advanced 11.27 points or 0.97% to 1,169.53


Brazil Market Closing:

  • Bovespa advanced 2,091.34 points or 2.12% to 100,763.6




The oil markets had a mixed day today:


Crude Oil increased 2.52 USD/BBL or 2.34% to 110.140


Brent increased 2.48 USD/BBL or 2.19% to 115.60


Natural gas increased 0.159 USD/MMBtu or 2.56% to 6.3790


Gasoline increased 0.0093 USD/GAL or 0.24% to 3.8941


l Heating oil decreased 0.0644 USD/GAL or -1.48% to 4.2985


The above data was collected around 14:02 EST on Monday


l Top commodity gainers: Palm Oil (5.53%), Orange Juice (3.14%), Oat (3.27%) and Bitumen (2.77%)


l Top commodity losers: Wheat (-1.92%), Coal (-1.76%), Methanol (-1.88%) and Rubber (-3.70%)


The above data was collected around 14:13 EST on Monday.




Japan 0.235%(+1bp), US 2’s 3.13% (+0.077%), US 10’s 3.2016% (+7.76bps); US 30’s 3.31% (+0.049%), Bunds 1.550% (+11bp), France 2.0780% (+10.7bp), Italy 3.637% (+7.9bp), Turkey 18.51% (-15bp), Greece 3.865% (+7.1bp), Portugal 2.654% (+12.8bp); Spain 2.648% (+9.5bp) and UK Gilts 2.3950% (+9.2bp).