Market Talk – October 7, 2020

ASIA:

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 10.91 points or -0.05% to 23,422.82
  • Shanghai closed
  • Hang Seng increased 262.21 points or 1.09% to 24,242.86
  • ASX 200 increased 74.30 points or 1.25% to 6,036.40
  • Kospi increased 21.04 points or 0.89% to 2,386.94
  • SENSEX increased 304.38 points or 0.77% to 39,878.95
  • Nifty50 increased 76.45 points or 0.66% to 11,738.85

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00346 or 0.49% to 0.71409
  • NZDUSD increased 0.00036 or 0.05% to 0.65893
  • USDJPY increased 0.34 or 0.32% to 105.98
  • USDCNY decreased 0.01712 or -0.25% to 6.73096

Precious Metals:

  • Gold increased 4.62 USD/t oz. or 0.25% to 1,881.75
  • Silver increased 0.503 USD/t. oz or 2.18% to 23.588

Some economic news from last night:

Japan:

Foreign Reserves (USD) (Sep) decreased from 1,398.5B to 1,389.8B

South Korea:

FX Reserves – USD (Sep) increased from 418.95B to 420.55B

Hong Kong:

Manufacturing PMI (Sep) increased from 44.0 to 47.7

Australia:

AIG Services Index (Sep) decreased from 42.5 to 36.2

Indonesia:

FX Reserves (USD) (Sep) decreased from 137.00B to 135.20B

Some economic news from today:

Japan:

Coincident Indicator (MoM) (Aug) decreased from 3.9% to 1.1%

Leading Index (MoM) (Aug) decreased from 2.9% to 2.1%

Leading Index increased from 86.7 to 88.8

India:

M3 Money Supply decreased from 13.4% to 12.2%

Singapore:

Foreign Reserves USD (MoM) (Sep) increased from 327.5B to 328.0B

EUROPE/EMEA:

The major Europe stock markets had a mixed day:

  • CAC 40 decreased 13.46 points or -0.28% to 4,882.00
  • FTSE 100 decreased 3.69 points or -0.06% to 5,946.25
  • DAX 30 increased 22.55 points or 0.17% to 12,928.57

The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.0033 or 0.28% to 1.17683
  • GBPUSD increased 0.00307 or 0.24% to 1.29121
  • USDCHF decreased 0.00095 or -0.10% to 0.91672

Some economic news from Europe today:

Germany:

German Industrial Production (MoM) (Aug) decreased from 1.4% to -0.2%

Norway:

Manufacturing Production (MoM) (Aug) increased from 1.8% to 3.0%

France:

French Current Account (Aug) increased from -5.70B to -4.70B

French Exports (Aug) decreased from 35.6B to 35.4B

French Imports (Aug) increased from 42.6B to 43.1B

French Reserve Assets Total (Sep) decreased from 198,158.0M to 196,141.0M

French Trade Balance (Aug) decreased from -7.0B to -7.7B

Spain:

Spanish Industrial Production (YoY) (Aug) increased from -6.2% to -5.7%

Italy:

Italian Retail Sales (MoM) (Aug) increased from -6.0% to 8.2%

Italian Retail Sales (YoY) (Aug) increased from -7.1% to 0.8%

UK:

Halifax House Price Index (MoM) (Sep) remain the same at 1.6%

Halifax House Price Index (YoY) increased from 5.2% to 7.3%

US/AMERICAS:

According to a Chinese official, Brazil’s decision to employ Huawei 5G throughout the country will dictate their future trade relations with China. The US has urged Brazil not to employ Huawei due to data intelligence breaches and went as far as to warn that US companies will be discouraged from conducting business in Brazil if they choose to use Huawei. “We believe Brazil will know how to make rational decisions that take into account long-term national interests,” Chinese ambassador Yang Wanming said.

On Tuesday, President Donald Trump said that he would cease stimulus discussions with the Democrats until after the November election. This Wednesday, the president tweeted beneath a post regarding a second round of $1,200 stimulus checks, “Move Fast, I Am Waiting To Sign!”

Minneapolis Federal Reserve President Neel Kashkari corroborated Fed Chairman Jerome Powell’s comments that Americans require a second round of stimulus payments. Kashkari warned of “enormous consequences” and stressed the importance of assisting individuals and businesses. “If we don’t support people who have lost their jobs, then they can’t pay their bills and then it ripples through the economy and the downturn is much worse than it needs to be,” he said this Wednesday. Furthermore, he noted that asking millions of Americans to figure out their financial burden on their own is wrong. “I don’t think it’s the right thing to do and I don’t think it’s good for the economy overall,” he stated.

US Market Closings:

  • Dow advanced 530.7 points or 1.91% to 28,303.46
  • S&P 500 advanced 58.49 points or 1.74% to 3,419.44
  • Nasdaq advanced 209.99 points or 1.88% to 11,364.6
  • Russell 2000 advanced 33.75 points or 2.14% to 1,611.04

Canada Market Closings:

  • TSX Composite advanced 192.17 points or 1.18% to 16,428.3
  • TSX 60 advanced 12.8 points or 1.32% to 985.81

Brazil Market Closing:

  • Bovespa declined 88.77 points or -0.00% to 95,526.26

ENERGY:

The oil markets had a mixed day today:

  • Crude Oil decreased 1.26 USD/BBL or -3.10% to 39.4100
  • Brent decreased 1.15 USD/BBL or -2.70% to 41.5000
  • Natural gas increased 0.041 USD/MMBtu or 1.63% to 2.5510
  • Gasoline decreased 0.0155 USD/GAL or -1.28% to 1.1982
  • Heating oil decreased 0.0211 USD/GAL or -1.80% to 1.1484

The above data was collected around 12:33 EST on Wednesday

  • Top commodity gainers: Silver (2.18%), Sugar (1.87%), Copper (3.44%), and Wheat (1.91%)
  • Top commodity losers: Crude Oil (-3.10%), Brent (-2.70%), Lumber (-3.26%), and Heating Oil (-1.80%)

The above data was collected around 12:39 EST on Wednesday.

BONDS:

Japan 0.04%(+0bp), US 2’s 0.15% (+1bps), US 10’s 0.76%(+2bps); US 30’s 1.56%(+3bps), Bunds -0.49% (+2bp), France -0.23% (+2bp), Italy 0.80% (+1bp), Turkey 13.04% (+33bp), Greece 0.98% (+0bp), Portugal 0.25% (+1bp); Spain 0.26% (+8bp) and UK Gilts 0.30% (+1bp).

  • UK 10-Year Treasury Gilt Auction decreased from 0.323% to 0.313%
  • German 10-Year Bund Auction decreased from -0.500% to -0.510%