Skip to content

Market Talk – October 11, 2022

Spread the love

Market Talk 2017 300x200



China’s central bank extended its bilateral currency swaps with European Central Bank, worth 350 billion yuan or 45 billion euros, according to a statement published on the Chinese central bank’s website on Monday. The swaps extension will help deepen bilateral cooperation and safeguard financial market stabilization, the Chinese central bank said.

The International Monetary Fund (IMF) on Tuesday cut its projection of India’s economic growth in 2022 to 6.8 percent, as it joins other global agencies that have trimmed forecasts. The IMF had in July projected a gross domestic product (GDP) growth of 7.4 percent for India in the fiscal year that started in April 2022. Even that forecast was lower than 8.2 percent projected in January this year. In its annual World Economic Outlook report released on Tuesday, the IMF said outlook for India is growth of 6.8 percent in 2022 –– a 0.6 percentage point downgrade since the July forecast, reflecting a weaker-than-expected outturn in the second quarter and more subdued external demand.



The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 714.86 points or -2.64% to 26,401.25
  • Shanghai increased 5.65 points or 0.19% to 2,979.79
  • Hang Seng decreased 384.30 points or -2.23% to 16,832.36
  • Kospi decreased 40.77 points or -1.83% to 2,192.07
  • ASX 200 decreased 22.80 points or -0.34% to 6,645.00
  • SENSEX decreased 843.79 points or -1.46% to 57,147.32
  • Nifty50 decreased 257.45 points or -1.49% to 16,983.55



The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00395 or 0.63% to 0.63363
  • NZDUSD increased 0.00822 or 1.48% to 0.56482
  • USDJPY decreased 0.13 or -0.09% to 145.537
  • USDCNY decreased 0.00188 or -0.03% to 7.15052



Precious Metals:

  • Gold increased 12.43 USD/t oz. or 0.75% to 1,680.39
  • Silver decreased 0.103 USD/t. oz or -0.52% to 19.547


Some economic news from last night:


Adjusted Current Account increased from -0.63T to -0.53T

Current Account n.s.a. (Aug) decreased from 0.229T to 0.059T


Westpac Consumer Sentiment (Oct) decreased from 3.9% to -0.9%

Building Approvals (MoM) increased from -18.2% to 28.1%

NAB Business Confidence (Sep) decreased from 10 to 5

New Zealand:

Electronic Card Retail Sales (MoM) (Sep) increased from 1.0% to 1.4%


Some economic news from today:


Chinese Total Social Financing (Sep) increased from 2,430.0B to 3,530.0B

M2 Money Stock (YoY) (Sep) decreased from 12.2% to 12.1%

Outstanding Loan Growth (YoY) (Sep) increased from 10.9% to 11.2%

New Loans (Sep) increased from 1,250.0B to 2,470.0B


Economy Watchers Current Index (Sep) increased from 45.5 to 48.4





The European Central Bank (ECB) is engaged in bringing down inflation to 2% percent in “two to three years” from now, ECB member and Bank of France head Francois Villeroy de Galhau told France Culture radio on Monday. He reiterated that “close to 2%” was still the right target monetary policymakers at the ECB and elsewhere should pursue, adding the eurozone was “still far from it.”

German inflation soared to double-digit levels for the first time in more than 70 years, underlining the precarious state of Europe’s largest economy, which leading economists warned could shrink by up to 7.9 percent next year in a worst-case scenario. Chancellor Olaf Scholz responded to soaring energy costs on Thursday by announcing plans for a €200bn cap on gas prices, which he described as a “defensive shield” to be financed by extending an off-balance sheet fund set up to provide aid during the coronavirus pandemic. Germany’s top economic institutes said the country would expand by 1.4 percent this year, contract by 0.4 percent in 2023 and grow by 1.9 percent in 2024. But they also warned the economy could shrink by 7.9 percent next year in the event of an unusually cold winter and the introduction of gas rationing in industry.



The major Europe stock markets had a negative day:

  • CAC 40 decreased 7.35 points or -0.13% to 5,833.20
  • FTSE 100 decreased 74.08 points or -1.06% to 6,885.23
  • DAX 30 decreased 52.69 points or -0.43% to 12,220.25


The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00531 or 0.55% to 0.97630
  • GBPUSD increased 0.00845 or 0.76% to 1.11582
  • USDCHF decreased 0.00708 or -0.71% to 0.99252


Some economic news from Europe today:


Average Earnings ex Bonus (Aug) increased from 5.2% to 5.4%

Average Earnings Index +Bonus (Aug) increased from 5.5% to 6.0%

Claimant Count Change (Sep) increased from 1.1K to 25.5K

Employment Change 3M/3M (MoM) (Aug) decreased from 40K to -109K

Unemployment Rate (Aug) decreased from 3.6% to 3.5%

BRC Retail Sales Monitor (YoY) (Sep) increased from 0.5% to 1.8%


Italian Industrial Production (MoM) (Aug) increased from 0.5% to 2.3%

Italian Industrial Production (YoY) (Aug) increased from -1.3% to 2.9%



The latest New York Federal Reserve consumer survey shows that the people are optimistic that inflation will begin to wane. Consumers anticipate inflation dropping to 5.4% in a year from now. Although this is above target, this is the lowest level of expected inflation stated in the past year. Inflation fears peaked in June when consumers anticipated a reading of 6.8%, which was optimistic in hindsight. Participants also project a rise in household spending in 2023 of 6%, beneath August’s forecast of 7.8%. As for real estate, participants believe home prices will rise by 2% in the next year, the lowest level recorded since June 2020. Energy costs are expected to rise by half a percentage point, while food is expected to rise by 6.9%.

US Market Closings:

  • Dow advanced 36.31 points or 0.12% to 29,239.19
  • S&P 500 declined 23.55 points or -1.1% to 10,426.19
  • Nasdaq declined 115.91 points or -0.65% to 3,588.84
  • Russell 2000 advanced 1 points or 0.06% to 1,692.92


Canada Market Closings:

  • TSX Composite declined 366.45 points or -1.97% to 18,216.68
  • TSX 60 declined 21.73 points or -1.94% to1,100.82


Brazil Market Closing:

  • Bovespa declined 1,113.52 points or -0.96% to 114,827.12





The oil markets had a mixed day today:


  • Crude Oil decreased 2.089 USD/BBL or -2.29% to 89.041
  • Brent decreased 1.919 USD/BBL or -1.99% to 94.271
  • Natural gas increased 0.1399 USD/MMBtu or 2.17% to 6.5749
  • Gasoline decreased 0.0079 USD/GAL or -0.30% to 2.6149
  • Heating oil decreased 0.0909 USD/GAL or -2.32% to 3.8238


The above data was collected around 13:14 EST on Tuesday


  • Top commodity gainers: Natural Gas (2.17%), Lumber (5.68%), Oat (2.02%) and Feeder Cattle (1.71%)
  • Top commodity losers: Steel (-3.62%), Wheat (-4.13%), Bitumen (-4.09%) and Palm Oil (-3.78%)


The above data was collected around 13:21 EST on Tuesday.





Japan 0.25%(-0.1bp), US 2’s 4.29% (-0.021%), US 10’s 3.8878% (-6.3bps); US 30’s 3.86% (-0.069%), Bunds 2.303% (-2.4bp), France 2.884% (-2.3bp), Italy 4.67% (+5.9bp), Turkey 12.35% (+32p), Greece 4.95% (+4.5bp), Portugal 3.38% (-1.1bp); Spain 3.471% (-1.6bp) and UK Gilts 4.436% (-3.6bp).