Market Talk – November 4, 2022

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ASIA:

In the next five years, India may become the third-largest economy after the United States and China, says International Monetary Fund’s World Economic Outlook database. As per the IMF, the South Asian country is most likely to reach the position two years earlier than initially expected, overtaking Germany and Japan. Considering India’s perspective to supersede Germany and Japan, the IMF’s report said that though inflation in India is high, but is not skyrocketing current account deficit high but is expected to moderate.

 

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 463.65 points or -1.68% to 27,199.74
  • Shanghai increased 72.99 points or 2.43% to 3,070.80
  • Hang Seng increased 821.65 points or 5.36% to 16,161.14
  • Kospi increased 19.26 points or 0.83% to 2,348.43
  • ASX 200 increased 34.60 points or 0.50% to 6,892.50
  • SENSEX increased 113.95 points or 0.19% to 60,950.36
  • Nifty50 increased 64.45 points or 0.36% to 18,117.15

 

 

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.01849 or 2.94% to 0.64758
  • NZDUSD increased 0.01599 or 2.77% to 0.59309
  • USDJPY decreased 1.689 or -1.14% to 146.623
  • USDCNY decreased 0.15583 or -2.13% to 7.17347

 

 

Precious Metals:

  • Gold increased 50.71 USD/t oz. or 3.11% to 1,679.86
  • Silver increased 1.419 USD/t. oz or 7.29% to 20.879

 

Some economic news from last night:

Japan:

Services PMI (Oct) increased from 53.0 to 53.2

Australia:

Retail Sales (MoM) remain the same at 0.6%

 

Some economic news from today:

India:

Bank Loan Growth remain the same at 17.9%

Deposit Growth decreased from 9.6% to 9.5%

FX Reserves, USD increased from 524.52B to 531.08B

 

 

EUROPE/EMEA:

The Bank of EnglandĀ has warned the UK risked being plunged into the longest recession in 100 years after it pushed up the cost of borrowing to 3% in the biggest single interest rate rise since 1989.Ā A 0.75% increase, the latest in a series of eight interest rate rises since last year, would not be enough to guarantee victory in the war against double-digit inflation, the Bank said, as it cautioned further action would be needed.Ā Bailey and his officials expect inflation to fall to zero by 2025, and analysts at Berenberg Bank are forecasting only one more rate rise, to 3.5%.

 

The major Europe stock markets had a green day:

  • CAC 40 increased 173.16 points or 2.77% to 6,416.44
  • FTSE 100 increased 146.21 points or 2.03% to 7,334.84
  • DAX 30 increased 329.66 points or 2.51% to 13,459.85

 

The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.02143 or 2.20% to 0.99634
  • GBPUSD increased 0.02144 or 1.92% to 1.13805
  • USDCHF decreased 0.01945 or -1.92% to 0.99355

 

Some economic news from Europe today:

Spain:

Spanish Services PMI (Oct) increased from 48.5 to 49.7

Italy:

Italian Services PMI (Oct) decreased from 48.8 to 46.4

France:

French Services PMI (Oct) decreased from 52.9 to 51.7

Germany:

German Services PMI (Oct) increased from 45.0 to 46.5

German Factory Orders (MoM) (Sep) decreased from -2.0% to -4.0%

UK:

Construction PMI (Oct) increased from 52.3 to 53.2

Euro Zone:

S&P Global Composite PMI (Oct) decreased from 48.1 to 47.3

Services PMI (Oct) decreased from 48.8 to 48.6

 

US/AMERICAS:

The nonfarm payrolls data is out ā€“ 261,000 positions for the month of October. The Labor Department reported that unemployment rose slightly to 3.7%, a welcome sign for the Fed as the market remains tight. Hourly earnings rose 4.7% YoY and 0.4% on a monthly basis. Health care led the rise in jobs after gaining 53,000 new positions, followed by professional and technical services at 43,000. Manufacturing grew by 32,000, although the ADP had estimated a contraction. ADP estimated that leisure and hospitality grew by over 200,000 jobs, whereas the Labor Department noted a gain of 35,000, which is still solid growth. Discouraged and under-employed workers rose slightly to 6.8%. Fed Chairman Jerome Powell believes the US workforce will take a hit as they raise rates in an attempt to curb inflation.

US Market Closings:

  • DowĀ advanced 401.97 points or 1.26% to 32,403.22
  • S&P 500Ā advanced 50.66 points or 1.36% to 3,770.55
  • NasdaqĀ advanced 132.31 points or 1.28% to 10,475.25
  • Russell 2000Ā advanced 20.14 points or 1.13% to 1,799.87

 

Canada Market Closings:

  • TSX CompositeĀ 208.59 points or 1.08% to 19,449
  • TSX 60Ā advanced 11.18 points or 0,96% to 1,178.17

 

Brazil Market Closing:

  • BovespaĀ advanced 1,259.1 points or 1.08% to 118,155.46

 

ENERGY:

 

The oil markets had a green day today:

 

  • Crude Oil increased 4.226 USD/BBL or 4.79% to 92.396
  • Brent increased 3.802 USD/BBL or 4.02% to 98.472
  • Natural gas increased 0.5041 USD/MMBtu or 8.44% to 6.4791
  • Gasoline increased 0.0393 USD/GAL or 1.46% to 2.7332
  • Heating oil increased 0.052 USD/GAL or 1.35% to 3.9173

 

The above data was collected around 16:21 EST on Friday

 

  • Top commodity gainers: Natural Gas (8.44%), Silver (7.29%), Copper (7.90%) and Zinc (6.67%)
  • Top commodity losers: Urea (-1.98%), Rhodium (-2.86%), Cheese (-0.38%) and Lean Hogs (-0.48%)

 

The above data was collected around 16:27 EST on Friday.

 

 

BONDS:

 

Japan 0.250%(-0.1bp), US 2ā€™s 4.66% (-0.043%), US 10ā€™s 4.1668% (+4.28bps); US 30ā€™s 4.27% (+0.115%), Bunds 2.289% (+3.8bp), France 2.826% (+4.9bp), Italy 4.469% (+4.9bp), Turkey 11.33% (+8p), Greece 4.689% (+3.5bp), Portugal 3.287% (+4.3bp); Spain 3.357% (+3.5bp) and UK Gilts 3.550% (+3.9bp).