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Market Talk – October 6, 2022

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Growth in India’s services industry eased to a six-month low in September, led by a cooling in demand amid high inflation, a private survey showed. The S&P Global India services Purchasing Managers’ Index fell to 54.3 in September from August’s 57.2, lower than the Reuters poll expectation of 57.0. However, the September reading stayed above the 50-mark separating growth from contraction for the fourteenth straight month – the longest stretch of expansion since October 2016. Weak external demand weighed on sales of services sector, with international orders declining further in September, according to the survey. Service providers reported a further increase in their operating expenses during September, owing to higher energy, food, labour and material costs.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 190.77 points or 0.70% to 27,311.30
  • Shanghai closed
  • Hang Seng decreased 75.82 points or -0.42% to 18,012.15
  • Kospi increased 22.64 points or 1.02% to 2,237.86
  • ASX 200 increased 1.80 points or 0.03% to 6,817.50
  • SENSEX increased 156.63 points or 0.27% to 58,222.10
  • Nifty50 increased 57.50 points or 0.33% to 17,331.80



The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.0106 or -1.63% to 0.64022
  • NZDUSD decreased 0.00915 or -1.60% to 0.56445
  • USDJPY increased 0.574 or 0.40% to 145.061
  • USDCNY increased 0.01653 or 0.23% to 7.08363



Precious Metals:

  • Gold decreased 2.21 USD/t oz. or -0.13% to 1,713.60
  • Silver decreased 0.054 USD/t. oz or -0.26% to 20.646


Some economic news from last night:1

Hong Kong:

Manufacturing PMI (Sep) decreased from 51.2 to 48.0


Foreign Bonds Buying increased from -1,098.9B to -886.3B

Foreign Investments in Japanese Stocks increased from -1,179.1B to -501.8B


AIG Construction Index (Sep) decreased from 47.9 to 46.5

Exports (MoM) (Aug) increased from -10.0% to 3.0%

Imports (MoM) (Aug) decreased from 5.0% to 4.0%

Trade Balance (Aug) decreased from 8.733B to 8.324B

New Zealand:

ANZ Commodity Price Index (MoM) increased from -3.4% to -0.5%


Some economic news from today:


Nikkei Services PMI (Sep) decreased from 57.2 to 54.3

M3 Money Supply decreased from 8.9% to 8.6%




The pound fell on Thursday morning after Opec+ decided to cut output, meaning higher fuel prices could be on the way; the average two-year fixed rate mortgage is now 6.07%, says MoneyFacts, as Brits are told to consider 30-year fixed deals.

The European Central Bank will raise interest rates as much as needed to bring down core inflation, although the pace could possibly slow after the end of the year, ECB policymaker Francois Villeroy de Galhau said on Tuesday. Villeroy, who is also governor of the French central bank, said that 4.8% in eurozone core inflation, which excludes energy and food prices beyond the central bank’s control, was too broad and too high. European banks have come under pressure in financial markets in recent days over concerns about the health of Swiss group Credit Suisse. Villeroy said that the ECB should raise interest rates “without hesitation, by the end of the year” to the level at which they are neither stimulating nor putting a drag on the economy, which he estimated was somewhere “below or close to 2%.”


The major Europe stock markets had a negative day:

  • CAC 40 decreased 49.04 points or -0.82% to 5,936.42
  • FTSE 100 decreased 55.35 points or -0.78% to 6,997.27
  • DAX 30 decreased 46.40 points or -0.37% to 12,470.78


The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.01096 or -1.11% to 0.97936
  • GBPUSD decreased 0.0192 or -1.69% to 1.11509
  • USDCHF increased 0.00715 or 0.73% to 0.99075


Some economic news from Europe today:


German Factory Orders (MoM) (Aug) decreased from 1.9% to -2.4%

German IHS S&P Global Construction PMI (Sep) decreased from 42.6 to 41.8


French IHS S&P Global Construction PMI (MoM) (Sep) increased from 48.2 to 49.1


Spanish Industrial Production (YoY) (Aug) increased from 5.4% to 5.5%

Spanish Consumer Confidence increased from 55.5 to 55.7


Italian IHS S&P Global Construction PMI (MoM) (Sep) increased from 41.2 to 46.7


Construction PMI (Sep) increased from 49.2 to 52.3

Euro Zone:

IHS S&P Global Construction PMI (MoM) (Sep) increased from 44.2 to 45.3

Retail Sales (MoM) (Aug) increased from -0.4% to -0.3%

Retail Sales (YoY) (Aug) decreased from -1.2% to -2.0%


The Bank of Canada’s Tiff Macklem declared that additional rate hikes would be necessary to curb inflation. “It is important that we get inflation back down so Canadians can plan their spending and their savings, and they don’t get surprised by big changes in their cost of living,” Macklem said in a public video statement after stating that inflation was simply too high for sustainability. “It is by raising interest rates that we’re going to slow spending in the economy, give the economy time to catch up and take the steam out of inflation,” Macklem said in the video. “That’s gonna [sic] get inflation back down.”

US Market Closings:

  • Dow declined 347.13 points or -1.15% to 29,926.74
  • S&P 500 declined 38.82 points or -1.03% to 3,744.46
  • Nasdaq declined 75.33 points or -0.68% to 11,073.31
  • Russell 2000 declined 10.18 points or -0.58% to 1,752.51


Canada Market Closings:

  • TSX Composite declined 256.08 points or -1.33% to 18,979.01
  • TSX 60 declined 17.92 points or -1.54% to 1,144.64


Brazil Market Closing:

  • Bovespa advanced 363.01 points or 0.31% to 117,560.83





The oil markets had a green day today:


  • Crude Oil increased 1.146 USD/BBL or 1.31% to 88.906
  • Brent increased 1.354 USD/BBL or 1.45% to 94.724
  • Natural gas increased 0.0341 USD/MMBtu or 0.49% to 6.9641
  • Gasoline increased 0.0258 USD/GAL or 0.97% to 2.6943
  • Heating oil increased 0.1885 USD/GAL or 5.11% to 3.8754


The above data was collected around 15:13 EST on Thursday


  • Top commodity gainers: Heating Oil (5.11%), Lumber (4.17%), Lean Hogs (1.73%) and Sugar (2.84%)
  • Top commodity losers: Orange Juice (-1.54%), Coffee (-3.09%), Copper (-2.09%) and Wheat (-2.55%)


The above data was collected around 15:16 EST on Thursday.





Japan 0.25%(+0bp), US 2’s 4.25% (+0.095%), US 10’s 3.8236% (+6.46bps); US 30’s 3.80% (+0.032%), Bunds 2.097% (+8bp), France 2.687% (+5bp), Italy 4.516% (+5.6bp), Turkey 11.68% (-16p), Greece 4.734% (+8.5bp), Portugal 3.186% (+6.1bp); Spain 3.288% (+5.2bp) and UK Gilts 4.1660% (+13.3bp).