Market Talk – October 17, 2022

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ASIA:

India’s retail inflation is set to ease from September levels, while economic activity is poised to expand, the Reserve Bank of India said in its monthly bulletin published on Monday. India’s retail inflation accelerated in September to a five-month high of 7.41% from a year earlier as food prices surged. RBI said the persistence of headline inflation above the mandated tolerance band of 2% to 6% for three consecutive quarters will trigger mandated accountability processes but monetary policy remains focused on re-aligning inflation with the target.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 314.97 points or -1.16% to 26,775.79
  • Shanghai increased 12.96 points or 0.42% to 3,084.94
  • Hang Seng increased 25.21 points or 0.15% to 16,612.90
  • Kospi increased 7.16 points or 0.32% to 2,219.71
  • ASX 200 decreased 94.40 points or -1.40% to 6,664.40
  • SENSEX increased 491.01 points or 0.85% to 58,410.98
  • Nifty50 increased 126.10 points or 0.73% to 17,311.80

 

 

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00959 or 1.55% to 0.63003
  • NZDUSD increased 0.00724 or 1.30% to 0.56354
  • USDJPY increased 0.036 or 0.02% to 148.784
  • USDCNY decreased 0.02261 or -0.31% to 7.19359

 

 

Precious Metals:

  • Gold increased 17.56 USD/t oz. or 1.07% to 1,659.32
  • Silver increased 0.533 USD/t. oz or 2.92% to 18.790

 

Some economic news from last night:

South Korea:

Exports (YoY) (Sep) decreased from 2.8% to 2.7%

Imports (YoY) (Sep) remain the same at 18.6%

Trade Balance (Sep) decreased from -3.70B to -3.78B

Singapore:

Non-Oil Exports (YoY) (Sep) decreased from 11.4% to 3.10%

Non-Oil Exports (MoM) (Sep) decreased from -3.90% to -4.00%

Trade Balance increased from 3.738B to 5.750B

 

Some economic news from today:

Japan:

Capacity Utilization (MoM) (Aug) decreased from 2.4% to 1.2%

Industrial Production (MoM) (Aug) increased from 2.7% to 3.4%

Tertiary Industry Activity Index (MoM) increased from -0.5% to 0.7%

 

 

EUROPE/EMEA:

Credit Suisse Group AG has approached at least one Middle Eastern sovereign wealth fund for a capital injection, Reuters reported, while some funds are looking at the scandal-hit Swiss bank’s businesses as potential investment opportunities. Credit Suisse, one of the largest banks in Europe, is trying to recover from a string of scandals, including losing more than $5 billion from the collapse of investment firm Archegos last year, when it also had to suspend client funds linked to failed financier Greensill. Analysts have said the company might need as much as 9 billion Swiss francs ($9 billion) as part of a reorganization, some of which may have to come from investors and some from the sale of assets.

The major Europe stock markets had a green day:

  • CAC 40 increased 108.74 points or 1.83% to 6,040.66
  • FTSE 100 increased 61.45 points or 0.90% to 6,920.24
  • DAX 30 increased 211.22 points or 1.70% to 12,649.03

 

The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.01222 or 1.26% to 0.98464
  • GBPUSD increased 0.0217 or 1.94% to 1.13965
  • USDCHF decreased 0.00945 or -0.94% to 0.99565

 

Some economic news from Europe today:

Italy:

Italian CPI (YoY) (Sep) increased from 8.4% to 8.9%

Italian CPI (MoM) (Sep) decreased from 0.8% to 0.3%

Italian CPI Ex Tobacco (MoM) (Sep) increased from 8.1% to 8.6%

Italian HICP (YoY) (Sep) increased from 9.1% to 9.4%

Italian HICP (MoM) (Sep) increased from 0.9% to 1.6%

US/AMERICAS:

Wall Street closed in the green today after strong earnings reports eliminated some fear in equities. The Nasdaq had its best day since July after closing at 10,675.80. The S&P 500 experienced a 2.65% gain, while the Dow rose 1.86%, safely above the 30,000 level. Additional earning reports are expected to be released this week from companies such as Tesla, IBM, and Netflix.

US Market Closings:

  • Dow advanced 550.99 points or 1.86% to 30,185.82
  • S&P 500 advanced 94.88 points or 2.65% to 3,677.95
  • Nasdaq advanced 354.41 points or 3.43% to 10,675.8
  • Russell 2000 advanced 53.35 points or 3.17% to 1,735.75

 

Canada Market Closings:

  • TSX Composite advanced 294.67 points or 1.61% to 18,621.02
  • TSX 60 advanced 17.38 points or 1.57% to 1,126.12

 

Brazil Market Closing:

  • Bovespa advanced 1,551.64 points or 1.38% to 113,623.98

 

ENERGY:

 

The oil markets had a mixed day today:

 

  • Crude Oil increased 0.851 USD/BBL or 0.99% to 86.461
  • Brent increased 0.65 USD/BBL or 0.71% to 92.280
  • Natural gas decreased 0.4482 USD/MMBtu or -6.95% to 6.0048
  • Gasoline decreased 0.0072 USD/GAL or -0.27% to 2.6237
  • Heating oil increased 0.1101 USD/GAL or 2.77% to 4.0903

 

The above data was collected around 13:26 EST on Monday

 

  • Top commodity gainers: Heating Oil (2.77%), Silver (2.92%), Lean Hogs (3.19%) and Orange Juice (1.79%)
  • Top commodity losers: Cocoa (-1.89%), Zinc (-2.91%), Aluminum (-3.01%) and Natural Gas (-6.95%)

 

The above data was collected around 13:36 EST on Monday.

 

BONDS:

 

Japan 0.25%(+0bp), US 2’s 4.46% (-0.051%), US 10’s 3.998% (-0.8bps); US 30’s 4.00% (+0.022%), Bunds 2.287% (-7.4bp), France 2.861% (-8.1bp), Italy 4.667% (-12.7bp), Turkey 12.74% (-29p), Greece 4.959% (+14.9bp), Portugal 3.358% (-8.5bp); Spain 3.49% (-2.9bp) and UK Gilts 3.973% (-35.4bp).