Market Talk – October 27, 2022

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ASIA:

 

China’s consumer prices rose in September at their fastest pace in more than two years as pork prices climbed, the National Bureau of Statistics said last Friday. The consumer price index increased by 2.8% last month from a year ago, matching expectations from a Reuters poll. Much of the gains came from a continued pickup in pork prices, which rose by 36% year-on-year for their biggest rise since August 2020, Wind data showed. Pork, a food staple in China, has a significant weighting in the country’s official consumer price index. China’s producer price index rose by 0.9% in September from a year ago, missing the Reuters estimate of 1%. The index grew by its slowest since January 2021, according to Wind.

 

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 86.60 points or -0.32% to 27,345.24
  • Shanghai decreased 16.60 points or -0.55% to 2,982.90
  • Hang Seng increased 110.27 points or 0.72% to 15,427.94
  • Kospi increased 39.22 points or 1.74% to 2,288.78
  • ASX 200 increased 34.20 points or 0.50% to 6,845.10
  • SENSEX increased 212.88 points or 0.36% to 59,756.84
  • Nifty50 increased 80.60 points or 0.46% to 17,736.95

 

 

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.00136 or -0.21% to 0.64759
  • NZDUSD increased 0.00129 or 0.22% to 0.58449
  • USDJPY decreased 0.178 or -0.12% to 146.001
  • USDCNY increased 0.06148 or 0.86% to 7.24738

 

 

Precious Metals:

  • Gold decreased 2.95 USD/t oz. or -0.18% to 1,661.54
  • Silver decreased 0.120 USD/t. oz or -0.61% to 19.500

 

Some economic news from last night:

China:

Chinese Industrial profit YTD (Sep) decreased from -2.1% to -2.3%

Japan:

Foreign Bonds Buying decreased from 400.4B to 164.5B

Foreign Investments in Japanese Stocks decreased from 408.7B to -356.6B

South Korea:

GDP (YoY) (Q3) increased from 2.9% to 3.1%

GDP (QoQ) (Q3) decreased from 0.7% to 0.3%

Australia:

Export Price Index (QoQ) (Q3) decreased from 10.1% to -3.6%

Import Price Index (QoQ) (Q3) decreased from 4.3% to 3.0%

 

Some economic news from today:

China:

FDI (Sep) decreased from 16.4% to 15.6%

 

 

EUROPE/EMEA:

 

Germany may allow China’s Cosco to take a smaller stake than originally planned in a Hamburg port terminal, in what an economy ministry source on Tuesday described as an “emergency solution” to approve the deal but mitigate the impact. The compromise would see Berlin approving a sale of 24.9% of the terminal to Cosco, several government sources said. It will be discussed by the cabinet on Wednesday. The sources said Germany’s economy and foreign ministries still wanted to block the deal entirely but were unlikely to succeed, with Chancellor Olaf Scholz expected to prevail over the objections from other ministers.

 

The major Europe stock markets had a mixed day:

  • CAC 40 decreased 32.28 points or -0.51% to 6,244.03
  • FTSE 100 increased 17.62 points or 0.25% to 7,073.69
  • DAX 30 increased 15.42 points or 0.12% to 13,211.23

 

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.01025 or -1.02% to 0.99863
  • GBPUSD decreased 0.00516 or -0.44% to 1.15810
  • USDCHF increased 0.00311 or 0.32% to 0.98961

 

Some economic news from Europe today:

Germany:

GfK German Consumer Climate (Nov) increased from -42.8 to -41.9

Spain:

Spanish Unemployment Rate (Q3) increased from 12.48% to 12.67%

Italy:

Italian Business Confidence (Oct) decreased from 101.2 to 100.4

Italian Consumer Confidence (Oct) decreased from 94.8 to 90.1

Italian Industrial Sales (MoM) (Aug) increased from -0.20% to 3.60%

Italian Industrial Sales (YoY) (Aug) increased from 16.20% to 23.10%

Euro Zone:

Deposit Facility Rate (Oct) increased from 0.75% to 1.50%

ECB Marginal Lending Facility increased from 1.50% to 2.25%

ECB Interest Rate Decision (Oct) increased from 1.25% to 2.00%

 

US/AMERICAS:

US gross domestic product advanced 2.6% during Q3, surpassing estimates of 2.3%, according to the Bureau of Economic Analysis. This is the first positive reading after two consecutive quarters of contraction. A narrowing trade deficit helped to push GDP higher last quarter. Consumer spending also increased GDP with more Americans spending on services (2.8%) than goods (-1.2%).

US Market Closings:

  • Dow advanced 194.17 points or 0.61% to 32,033.28
  • S&P 500 declined 23.3 points or -0.61% to 3,807.3
  • Nasdaq declined 178.32 points or -1.63% to 10,792.68
  • Russell 2000 advanced 1.99 points or 0.11% to 1,806.32

 

Canada Market Closings:

  • TSX Composite advanced 72.35 points or 0.38% to 19,352.11
  • TSX 60 advanced 6.07 points or 0.52% to 1,172.07

 

Brazil Market Closing:

  • Bovespa advanced 1,876.97 points or 1.66% to 114,640.76

 

ENERGY:

 

The oil markets had a mixed day today:

 

  • Crude Oil increased 1.742 USD/BBL or 1.98% to 89.652
  • Brent increased 1.467 USD/BBL or 1.53% to 97.157
  • Natural gas decreased 0.253 USD/MMBtu or -4.51% to 5.3530
  • Gasoline increased 0.0874 USD/GAL or 3.01% to 2.9868
  • Heating oil increased 0.0796 USD/GAL or 1.93% to 4.1997

 

The above data was collected around 12:10 EST on Thursday

 

  • Top commodity gainers: Heating Oil (1.93%), Gasoline (3.01%), Crude Oil (1.98%) and Cocoa (1.76%)
  • Top commodity losers: Lean Hogs (-3.34%), Canola (-3.99%), Orange Juice (-4.28%) and Natural Gas (-4.51%)

 

The above data was collected around 12:16 EST on Thursday

 

 

BONDS:

 

Japan 0.255%(+0.5bp), US 2’s 4.33% (-0.084%), US 10’s 3.9331% (-8.19bps); US 30’s 4.09% (-0.079%), Bunds 1.966% (-14.9bp), France 2.474% (-19.8bp), Italy 4.041% (-29.3bp), Turkey 11.72% (-3p), Greece 4.415% (-25.4bp), Portugal 2.949% (-20.1bp); Spain 3.008% (-23bp) and UK Gilts 3.416% (-16.1bp).