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Market Talk – May 13, 2022

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Sri Lanka’s main opposition party joined anti-government protesters on Friday in rejecting the appointment of a new prime minister and insisted the president resign to take responsibility for the country’s disastrous economic crisis. President Gotabaya Rajapaksa appointed five-time prime minister Ranil Wickremesinghe to his sixth term. Protesters said the appointment of Wickremesinghe will do little to ease the anger against the president, who they say is ultimately responsible for the worst economic crisis to hit the nation since it became independent from Britain in 1948. Thursday, but opposition comments signaled it was not likely to resolve the political and economic disarray in the strategic Indian Ocean island nation.

The major Asian stock markets had a mixed day today:• NIKKEI 225 increased 678.93 points or 2.64% to 26,427.65• Shanghai increased 29.29 points or 0.96% to 3,084.28• Hang Seng increased 518.43 points or 2.68% to 19,898.77• ASX 200 increased 134.10 points or 1.93% to 7,075.10• Kospi increased 54.16 points or 2.12% to 2,604.24• SENSEX decreased 136.69 points or -0.26% to 52,793.62• Nifty50 decreased 25.85 points or -0.16% to 15,782.15The major Asian currency markets had a mixed day today:• AUDUSD increased 0.00401 or 0.58% to 0.69045• NZDUSD increased 0.00163 or 0.26% to 0.62520• USDJPY   increased 0.806 or 0.63% to 129.326• USDCNY decreased 0.02441 or -0.36% to 6.80397Precious Metals:• Gold decreased 12.41 USD/t oz. or -0.68% to 1,809.31• Silver increased 0.295 USD/t. oz or 1.43% to 20.957Some economic news from last night:China:China Thomson Reuters IPSOS PCSI (May) increased from 64.37 to 66.78Japan:Thomson Reuters IPSOS PCSI (May) increased from 38.80 to 39.08M2 Money Stock (YoY) increased from 3.5% to 3.6%M3 Money Supply (Apr) increased from 2,024.9T to 2,033.5TSouth Korea:Export Price Index (YoY) (Apr) decreased from 23.4% to 21.4%Import Price Index (YoY) (Apr) decreased from 35.9% to 35.0%Australia:HIA New Home Sales (MoM) decreased from 3.9% to -1.2%New Zealand:Business NZ PMI (Apr) decreased from 53.8 to 51.2Some economic news from todayChina:M2 Money Stock (YoY) (Apr) increased from 9.7% to 10.5%Outstanding Loan Growth (YoY) (Apr) decreased from 11.4% to 10.9%New Loans (Apr) decreased from 3,130.0B to 645.4BChinese Total Social Financing (Apr) decreased from 4,650.0B to 910.2BHong Kong:GDP (QoQ) (Q1) decreased from -2.9% to -3.0%GDP (YoY) (Q1) remain the same at -4.0%India:Exports (USD) (Apr) increased from 38.19B to 40.19BImports (USD) (Apr) increased from 58.26B to 60.30BTrade Balance (Apr) decreased from -20.07B to -20.11BFX Reserves, USD decreased from 597.73B to 595.95BEUROPE/EMEA:

Prime Minister Boris Johnson has tasked his ministers with cutting the number of civil service jobs to levels seen before Britain’s vote to leave the European Union in 2016, part of what the government said was a plan to deliver for taxpayers. Johnson is trying to find ways to cut costs at a time when millions of people in Britain are struggling with increasing food and fuel bills, targeting a workforce that has increased to help navigate Brexit and the COVID-19 outbreak. British newspaper the Daily Mail reported that the government planned to cut 91,000 jobs, or almost one in five public sector workers. The Institute for Government, a think tank, estimated the savings to the public finances could be around 3.6 billion pounds ($4.38 billion) a year.
The major Europe stock markets had a green day:• CAC 40 increased 156.42 points or 2.52% to 6,362.68• FTSE 100 increased 184.81 points or 2.55% to 7,418.15• DAX 30  increased 288.29 points or 2.10% to 14,027.93The major Europe currency markets had a mixed day today:• EURUSD increased 0.00167 or 0.16% to 1.03961• GBPUSD increased 0.00201 or 0.16% to 1.22225• USDCHF decreased 0.00068 or -0.07% to 1.00334Some economic news from Europe today:France:French CPI (MoM) (Apr) decreased from 1.4% to 0.4%French CPI (YoY) increased from 4.5% to 4.8%French HICP (YoY) (Apr) increased from 5.1% to 5.4%French HICP (MoM) (Apr) decreased from 1.6% to 0.5%Spain:Spanish CPI (MoM) (Apr) decreased from -0.1% to -0.2%Spanish CPI (YoY) (Apr) decreased from 8.4% to 8.3%Spanish HICP (YoY) (Apr) remain the same at 8.3%Spanish HICP (MoM) (Apr) decreased from -0.2% to -0.3%Euro Zone:Industrial Production (YoY) (Mar) decreased from 1.7% to -0.8%Industrial Production (MoM) (Mar) decreased from 0.5% to -1.8%US/AMERICAS:

Federal Reserve Bank of St. Louis President James Bullard stated that he would like the Federal Reserve to raise rates by 3.5% by the end of the year. Bullard believes another 50 basis point raise would be beneficial for the next meeting, and Atlanta Fed President Raphael Bostic and Cleveland Fed President Loretta Mester voiced similar sentiments. “The committee has, based on public comments from my colleagues, coalesced around a plan of 50 basis points per meeting so I think we can proceed on that,” Bullard said. Some are hoping for a 75 basis point jump, but Fed presidents seem content with  the current path. The FOMC is set to make their next decision on June 15.

US Market Closings:

  • Dow advanced 466.36 points or 1.47% to 32,196.66
  • S&P 500 advanced 93.81 points or 2.39% to 4,023.89
  • Nasdaq advanced 434.04 points or 3.82% to 11,805
  • Russell 2000 advanced 53.28 points or 3.06% to 1,792.67


Canada Market Closings:

  • TSX Composite advanced 400.76 points or 2.03% to 20,099.81
  • TSX 60 advanced 20.46 points or 1.71% to 1,219.96


Brazil Market Closing:

  • Bovespa advanced 1,236.54 points or 1.17% to 106,924.18

ENERGY:The oil markets had a mixed day today:• Crude Oil increased 3.96 USD/BBL or 3.73% to 110.0800• Brent increased 3.73 USD/BBL or 3.47% to 111.18• Natural gas decreased 0.099 USD/MMBtu or -1.28% to 7.6400• Gasoline increased 0.1611 USD/GAL or 4.25% to 3.9528• Heating oil increased 0.0004 USD/GAL or 0.01% to 3.9165The above data was collected around 14:19 EST on Friday• Top commodity gainers: Crude Oil (3.73%) and Brent (3.47%),  Gasoline (4.25%),  Orange Juice (3.37%)• Top commodity losers: Corn (-2.86%),  Lumber (-8.37%), Rubber (-3.55%) and Natural Gas (-1.28%)The above data was collected around 14:25 EST on Friday.BONDS: Japan 0.245%(+0.1bp), US 2’s 2.60% (+0.025%), US 10’s 2.9240% (+6.89bps); US 30’s 3.08% (+0.060%), Bunds 0.947% (+7.8bp), France 1.457% (+8.2bp), Italy 2.858% (+13.7bp), Turkey 24.24% (+6bp), Greece 3.484% (+11.4bp), Portugal 2.090% (+12.9bp); Spain 2.031% (+13.1bp) and UK Gilts 1.7470% (+4.7bp).