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Market Talk – October 5, 2022

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ASIA:

 

Business sentiment among Japanese manufacturers worsened for a third straight quarter from July to September, according to a survey by the central bank, as the world’s third-largest economy struggled with rising costs, a slumping yen and pandemic restrictions. The business outlook for major manufacturers fell to plus-8 in September from plus-9 in June, a Bank of Japan “tankan” survey showed on Monday. The survey showed sentiment in the services sector improved slightly from three months ago, although retailers were less optimistic due to rising living costs stemming from higher commodity prices and a weakening yen.

 

The major Asian stock markets had a green day today:

  • NIKKEI 225 increased 128.32 points or 0.48% to 27,120.53
  • Shanghai closed
  • Hang Seng increased 1,008.46 points or 5.90% to 18,087.97
  • Kospi increased 5.84 points or 0.26% to 2,215.22
  • ASX 200 increased 116.40 points or 1.74% to 6,815.70
  • SENSEX closed
  • Nifty50 closed

 

 

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.00132 or -0.20% to 0.64873
  • NZDUSD decreased 0.00024 or -0.04% to 0.57276
  • USDJPY increased 0.503 or 0.35% to 144.563
  • USDCNY increased 0.0292 or 0.41% to 7.06730

 

 

Precious Metals:

  • Gold decreased 11.20 USD/t oz. or -0.65% to 1,715.04
  • Silver decreased 0.522 USD/t. oz or -2.47% to 20.588

 

Some economic news from last night:1

Japan:

Services PMI (Sep) increased from 51.9 to 52.2

South Korea:

CPI (YoY) (Sep) decreased from 5.7% to 5.6%

CPI (MoM) (Sep) increased from -0.1% to 0.3%

Australia:

Services PMI increased from 50.4 to 50.6

Retail Sales (MoM) decreased from 1.3% to 0.6%

New Zealand:

RBNZ Interest Rate Decision increased from 3.00% to 3.50%

 

Some economic news from today:

Singapore:

Retail Sales (MoM) (Aug) decreased from 0.7% to -1.3%

Retail Sales (YoY) (Aug) decreased from 13.9% to 13.0%

 

 

EUROPE/EMEA:

 

In its latest World Economic Outlook, the IMF said the world must cut greenhouse gas emissions by at least a quarter by the end of this decade to achieve carbon neutrality by 2050. long-term economic costs, even if these are overshadowed by the myriad long-term benefits of slowing climate change. The IMF highlighted the short-term impact of various climate mitigation policies on output and inflation. If the right measures are taken immediately and gradually over the next eight years, the costs will be small. However, if the transition to renewables is delayed, the costs will be much higher.

 

The major Europe stock markets had a negative day:

  • CAC 40 decreased 54.23 points or -0.90% to 5,985.46
  • FTSE 100 decreased 33.84 points or -0.48% to 7,052.62
  • DAX 30 decreased 153.30 points or -1.21% to 12,517.18

 

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.00972 or -0.97% to 0.98843
  • GBPUSD decreased 0.01175 or -1.03% to 1.13368
  • USDCHF increased 0.00375 or 0.38% to 0.98285

 

Some economic news from Europe today:

Germany:

German Exports (MoM) (Aug) increased from -1.6% to 1.6%

German Imports (MoM) (Aug) increased from 0.1% to 3.4%

German Trade Balance (Aug) decreased from 3.4B to 1.2B

German Composite PMI (Sep) decreased from 46.9 to 45.7

German Services PMI (Sep) decreased from 47.7 to 45.0

France:

French Industrial Production (MoM) (Aug) increased from -1.6% to 2.4%

French S&P Global Composite PMI (Sep) increased from 50.4 to 51.2

French Services PMI (Sep) increased from 51.2 to 52.9

Spain:

Spanish Services PMI (Sep) decreased from 50.6 to 48.5

Italy:

Italian Public Deficit (Q2) decreased from 9.0% to 3.1%

Italian Composite PMI (Sep) decreased from 49.6 to 47.6

Italian Services PMI (Sep) decreased from 50.5 to 48.8

UK:

Composite PMI (Sep) decreased from 49.6 to 49.1

Services PMI (Sep) decreased from 50.9 to 50.0

Euro Zone:

S&P Global Composite PMI (Sep) decreased from 48.9 to 48.1

Services PMI (Sep) decreased from 49.8 to 48.8

 

US/AMERICAS:

The US ADP report was released today, showing that the labor market is still strong. In September, companies added 208,000 positions, surpassing August’s upwardly revised reading of 185,000. Major corporations with 50-499 employees saw the biggest gain after adding 90,000 positions, followed by large firms (60,000), and small businesses (58,000). The transportation and utilities sector saw a growth of 147,000, offsetting losses in goods-producing (-29,000), manufacturing (-13,000), and mining (-16,000). Professional services saw 57,000 new jobs, education added 38,000 positions, and hospitality picked up by 31,000.

The ADP also reported that annual pay is up 7.8% from last September. Those who switched jobs amid the “Great Resignation” saw the largest pay growth with a median average gain of 15.7%. The nonfarm payrolls report issued by the Bureau of Labor Statistics will be released on Friday and is closely watched. The ADP estimate has been beneath the BLS figure for some time, and analysts expect Friday to report a monthly growth of around 275,000 jobs.

US Market Closings:

  • Dow declined 42.45 points or -0.14% to 30,273.87
  • S&P 500 declined 7.65 points or -0.2% to 3,783.28
  • Nasdaq declined 27.77 points or -025% to 11,148.64
  • Russell 2000 declined 13.07 points or -0.74% to 1,762.69

 

Canada Market Closings:

  • TSX Composite declined 135.9 points or -0.7% to 19,235.09
  • TSX 60 declined 8.61 points or -0.74% to 1,162.56

 

Brazil Market Closing:

  • Bovespa advanced 967.7 points or 0.83% to 117,197.82

 

 

ENERGY:

 

The oil markets had a mixed day today:

 

  • Crude Oil increased 0.988 USD/BBL or 1.14% to 87.508
  • Brent increased 1.268 USD/BBL or 1.38% to 93.068
  • Natural gas increased 0.0922 USD/MMBtu or 1.35% to 6.9292
  • Gasoline decreased 0.0268 USD/GAL or -1.00% to 2.6562
  • Heating oil increased 0.1498 USD/GAL or 4.24% to 3.6856

 

The above data was collected around 14:33 EST on Wednesday

 

  • Top commodity gainers: Heating Oil (4.24%), Cheese (12.84%), Lean Hogs (4.50%) and Milk (11.45%)
  • Top commodity losers: Orange Juice (-4.00%), Palladium (-2.85%), Cotton (-5.49%) and Silver (-2.47%)

 

The above data was collected around 14:38 EST on Wednesday.

 

 

BONDS:

 

Japan 0.25%(+2.1bp), US 2’s 4.16% (+0.059%), US 10’s 3.7649% (+14.79bps); US 30’s 3.77% (+0.087%), Bunds 2.017% (+13.5bp), France 2.637% (+16.1bp), Italy 4.46% (+27.2bp), Turkey 11.84% (-3p), Greece 4.649% (+1bp), Portugal 3.125% (+18.1bp); Spain 3.236% (+18.3bp) and UK Gilts 4.0330% (+16.3bp).