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Market Talk – October 4, 2022

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The Agricultural Bank of China will provide more than 300 billion yuan ($43.3 billion) in loans to support the country’s autumn harvest and planting, China Central Television (CCTV) reported on Monday. According to a CCTV report, the loan will focus on areas including grain production, storage of agricultural products, cold chain logistics and construction of agricultural facilities. Official data showed that China had completed 38.6 percent of the total autumn harvest on 33 million hectares. The Agricultural Development Bank of China, the country’s rural policy bank, provided 2.14 trillion yuan in loans in the first three quarters of this year, up 373.9 billion yuan from the same period last year.

India’s central bank’s benchmark repo rate, The Reserve Bank of India, was raised by 50 basis points on Friday, the fourth increase in the current cycle, as policymakers extended their battle to tame stubbornly above-target retail inflation. The Monetary Policy Committee (MPC), comprising three members from the RBI and three external members, raised the key lending or repo rate to 5.90% with a five-out-of-six majority. The rate of the standing deposit facility and the rate of the marginal standing facility were also increased by the same amount to 5.65%, respectively. 6.15%. India’s annual retail inflation rate accelerated to 7% in August, driven by a sharp rise in food prices, staying above the RBI’s 2-6% target band for eight consecutive months.



The major Asian stock markets had a green day today:

  • NIKKEI 225 increased 776.42 points or 2.96% to 26,992.21
  • Shanghai closed
  • Hang Seng closed
  • Kospi increased 53.89 points or 2.50% to 2,209.38
  • ASX 200 increased 242.40 points or 3.75% to 6,699.30
  • SENSEX increased 1,276.66 points or 2.25% to 58,065.47
  • Nifty50 increased 386.95 points or 2.29% to 17,274.30



The major Asian currency markets had a negative day today:

  • AUDUSD decreased 0.0039 or -0.60% to 0.64663
  • NZDUSD decreased 0.00075 or -0.13% to 0.57135
  • USDJPY decreased 0.283 or -0.20% to 144.267
  • USDCNY decreased 0.05347 or -0.75% to 7.04983



Precious Metals:

  • Gold increased 21.50 USD/t oz. or 1.27% to 1,720.72
  • Silver increased 0.230 USD/t. oz or 1.11% to 20.985


Some economic news from last night:1


Tokyo Core CPI (YoY) (Sep) increased from 2.6% to 2.8%

CPI Tokyo Ex Food and Energy (MoM) (Sep) remain the same at 0.3%


AIG Manufacturing Index (Sep) increased from 49.3 to 50.2

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

Home Loans (MoM) increased from -7.0% to -2.7%

RBA Interest Rate Decision (Oct) increased from 2.35% to 2.60%

New Zealand:

NZIER Business Confidence (Q3) increased from -65% to -42%

NZIER QSBO Capacity Utilization (Q3) increased from 93.4% to 94.5%


Some economic news from today:


Commodity Prices (YoY) increased from 23.3% to 30.6%

New Zealand:

GlobalDairyTrade Price Index decreased from 2.0% to -3.5%




Eurozone inflation hit a new record high of 10% in September, Eurostat data showed on Friday, up from 9.1% in August and above consensus projections of 9.7%. The results also showed that price increases spread from fluctuating food and energy prices to almost all segments of the 19-member bloc’s economy. Energy prices rose 40.8% year-on-year from 38.6% in August, followed by food, alcohol and tobacco at 11.8%, up from 10.6% last month. Eurozone unemployment rose to 6.6% in August, unchanged from July, showing that the labor market remained resilient despite the looming recession and energy crisis gripping the continent.

Germany’s finance minister has vowed that he will not follow the UK “down the path of an expansionary fiscal policy” as his government announced a €200bn (£177bn) fund designed to protect consumers and businesses from rising gas prices driven by Russia’s war in Ukraine. Europe’s largest economy will reactivate an economic stabilising fund previously used during the global financial crisis and the coronavirus pandemic, said the chancellor, Olaf Scholz, at a joint press conference with the finance minister, Christian Lindner, and the economic minister, Robert Habeck, on Thursday afternoon. Expansionary fiscal policies include tax cuts and government spending with the aim of boosting the economy. But they run the risk of causing high inflation and devaluing the currency, as has happened in the UK.



The major Europe stock markets had a green day:


  • CAC 40 increased 245.54 points or 4.24% to 6,039.69
  • FTSE 100 increased 177.70 points or 2.57% to 7,086.46
  • DAX 30 increased 461.00 points or 3.78% to 12,670.48


The major Europe currency markets had a mixed day today:


  • EURUSD increased 0.01311 or 1.33% to 0.99638
  • GBPUSD increased 0.01082 or 0.96% to 1.14356
  • USDCHF decreased 0.01126 or -1.14% to 0.98074


Some economic news from Europe today:


Spanish Unemployment Change decreased from 40.4K to 17.7K

Euro Zone:

PPI (YoY) (Aug) increased from 38.0% to 43.3%

PPI (MoM) (Aug) increased from 4.0% to 5.0%



Job openings in the US fell by 10% from July to August, the Bureau of Labor Statistics stated this Tuesday. Available jobs came in at 10.5 million for the month, well beneath the 11 million estimate. The job opening to available worker ratio contracted to 1.67 to 1 in August. This is a positive sign for the Federal Reserve as they are trying to loosen the labor market.

US Market Closings:

  • Dow advanced 825.43 points or 2.8% to 30,316.32
  • S&P 500 advanced 112.5 points or 3.06% to 3,790.93
  • Nasdaq advanced 360.97 points or 3.34% to 11,176.41
  • Russell 2000 advanced 66.9 points or 3.91% to 1,775.77


Canada Market Closings:

  • TSX Composite advanced 489.8 points or 2.59% to 19,370.99
  • TSX 60 advanced 28.94 points or 2.53% to 1,171.17


Brazil Market Closing:

  • Bovespa advanced 95.66 points or 0.08% to 116,230.12




The oil markets had a green day today:


  • Crude Oil increased 2.725 USD/BBL or 3.26% to 86.355
  • Brent increased 2.71 USD/BBL or 3.05% to 91.570
  • Natural gas increased 0.3661 USD/MMBtu or 5.66% to 6.8361
  • Gasoline increased 0.1405 USD/GAL or 5.59% to 2.6534
  • Heating oil increased 0.141 USD/GAL or 4.19% to 3.5101


The above data was collected around 13:28 EST on Tuesday           


  • Top commodity gainers: Palm Oil (5.49%), Gasoline (5.59%), Natural Gas (5.66%) and Aluminum (5.65%)
  • Top commodity losers: Lean Hogs (-1.82%), Feeder Cattle (-0.42%), Oat (-0.17%) and TTF Gas (-4.69%)


The above data was collected around 13:38 EST on Tuesday.





Japan 0.228%(-1.2bp), US 2’s 4.10% (-0.004%), US 10’s 3.6171% (-3.39bps); US 30’s 3.69% (-0.017%), Bunds 1.876% (-1.8bp), France 2.472% (-2.1bp), Italy 4.185% (-2bp), Turkey 11.87% (+22p), Greece 4.647% (-19.5bp), Portugal 2.93% (-3.1bp); Spain 3.065% (-0.4bp) and UK Gilts 3.8620% (-8.6bp).