Market Talk – October 10, 2022

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ASIA:

 

Holiday spending during China’s Golden Week fell to a seven-year low as broad Covid restrictions discouraged people from traveling or spending, while a darker economic outlook continued to dent consumer confidence. Spending by tourists for the week-long holiday that began Oct. 1 fell 26% year-on-year to 287.2 billion yuan ($40.4 billion), according to data from the Ministry of Culture and Tourism on Friday. That’s the lowest figure since 2014 and less than half the pre-pandemic level in 2019, according to government statistics from previous years.

 

The major Asian stock markets had a negative day today:

  • NIKKEI 225 closed
  • Shanghai decreased 50.25 points or -1.66% to 2,974.15
  • Hang Seng decreased 523.39 points or -2.95% to 17,216.66
  • Kospi closed
  • ASX 200 decreased 95.00 points or -1.40% to 6,667.80
  • SENSEX decreased 200.18 points or -0.34% to 57,991.11
  • Nifty50 decreased 73.65 points or -0.43% to 17,241.00

 

 

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.00820 or -1.29% to 0.62841
  • NZDUSD decreased 0.00599 or -1.07% to 0.55511
  • USDJPY increased 0.373 or 0.26% to 145.744
  • USDCNY increased 0.0351 or 0.49% to 7.16490

 

 

Precious Metals:

  • Gold decreased 26.79 USD/t oz. or -1.58% to 1,667.73
  • Silver decreased 0.523 USD/t. oz or -2.60% to 19.587

 

Some economic news from last night:

Australia:

AIG Services Index (Sep) decreased from 53.3 to 48.0

 

 

 

EUROPE/EMEA:

 

UK government borrowing costs have risen to the highest levels since the financial market chaos triggered by Kwasi Kwarteng’s mini budget in September, despite renewed efforts by the Bank of England to smooth over the turmoil. The yield – or interest rate – on 10-year UK government bonds rose above 4.5% in afternoon trading on Monday, returning to the levels last seen two weeks ago, before the central bank intervened after the chancellor’s poorly received tax and spending statement.

 

The major Europe stock markets had a negative day:

  • CAC 40 decreased 26.39 points or -0.45% to 5,840.55
  • FTSE 100 decreased 31.78 points or -0.45% to 6,959.31
  • DAX 30 decreased 0.06 points or -0.00% to 12,272.94

 

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.00471 or -0.48% to 0.96926
  • GBPUSD decreased 0.00687 or -0.62% to 1.10274
  • USDCHF increased 0.00627 or 0.63% to 1.00047

 

Some economic news from Europe today:

Euro Zone:

Sentix Investor Confidence (Oct) decreased from -31.8 to -38.3

 

US/AMERICAS:

JPMorgan Chase CEO Jamie Dimon is pessimistic about the US economy, despite it currently “actually still doing well.” Dimon told CNBC that he believes the global economy will slip into a recession by the middle of 2023. Dimon believes the American consumer will be better off than during the 2008 crisis. However, Dimon pointed to inflation, ending QE programs, and rising rates. He noted that Europe is already in a recession, and he expects the US to follow in six to nine months. The CEO also criticized the US central bank for waiting too long and doing too little amid rising inflation. He also personally believes US indexes are in trouble and believes the S&P 500 could plummet another 20%. “JPMorgan is bracing ourselves and we’re going to be very conservative with our balance sheet,” Dimon said.

US Market Closings:

  • Dow declined 93.85 points or -0.32% to 29,202.94
  • S&P 500 declined 27.22 points or -0.75% to 3,612.44
  • Nasdaq declined 110.3 points or -1.04% to 10,542.1
  • Russell 2000 declined 10.23 points or -0.6% to 1,691.92

 

Canada Market Closings:

  • TSX Composite declined 395.88 points or -2.09% to 18,583.13
  • TSX 60 declined 22.09 points or -1.93% to 1,122.55

 

Brazil Market Closing:

  • Bovespa declined 434.61 points or -0.37% to 115,940.64

 

 

ENERGY:

 

The oil markets had a mixed day today:

 

  • Crude Oil decreased 0.626 USD/BBL or -0.68% to 92.014
  • Brent decreased 0.677 USD/BBL or -0.69% to 97.243
  • Natural gas decreased 0.2229 USD/MMBtu or -3.30% to 6.5251
  • Gasoline decreased 0.0696 USD/GAL or -2.55% to 2.6650
  • Heating oil increased 0.0084 USD/GAL or 0.21% to 4.0271

 

The above data was collected around 13:05 EST on Monday

 

  • Top commodity gainers: Wheat (6.58%), Cotton (2.87%), Oat (2.76%) and Corn (1.71%)
  • Top commodity losers: Rubber (-2.01%), Natural Gas (-3.30%), Gasoline (-2.55%) and Silver (-2.60%)

 

The above data was collected around 13:19 EST on Monday.

 

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BONDS:

 

Japan 0.25%(+0bp), US 2’s 4.31% (+0.058%), US 10’s 3.885% (+6.1bps); US 30’s 3.84% (+0.049%), Bunds 2.351% (+15.4bp), France 2.899% (+10.3bp), Italy 4.635% (-5.4bp), Turkey 12.03% (+29p), Greece 4.914% (+10.3bp), Portugal 3.387% (+7.1bp); Spain 3.524% (+12.1bp) and UK Gilts 4.458% (+22.1bp).