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Market Talk – September 13, 2022

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India’s restrictions on rice exports have crippled trading in Asia, with buyers seeking alternative supplies from Vietnam, Thailand and Myanmar, where sellers are delaying deals as prices rise, industry officials said. India, the world’s top grain exporter, on Thursday banned shipments of broken rice and imposed a 20% tariff on exports of various other varieties as the country tries to boost supplies and calm prices after below-average monsoon rains curbed planting. Rice is the latest in a series of commodities to face export curbs this year as governments seek to increase supplies and fight inflation amid trade disruptions caused by the war in Ukraine. Rice prices have jumped 5% in Asia since India’s announcement and are expected to rise further this week, with buyers and sellers on the sidelines. Rice is a staple food for more than 3 billion people, and when India banned exports in 2007, global prices soared to a record high of around $1,000 a tonne.

The major Asian stock markets had a mixed day today:


  • NIKKEI 225 increased 72.52 points or 0.25% to 28,614.63


  • Shanghai increased 1.74 points or 0.05% to 3,263.80


  • Hang Seng decreased 35.39 points or -0.18% to 19.326.86


  • Kospi increased 65.26 points or 2.74% to 2,449.54


  • ASX 200 increased 45.20 points or 0.65% to 7,009.70


  • SENSEX increased 455.95 points or 0.76% to 60,571.08


  • Nifty50 increased 133.70 points or 0.75% to 18,070.05


The major Asian currency markets had a mixed day today:


  • AUDUSD decreased 0.01294 or -1.88% to 0.67647


  • NZDUSD decreased 0.01228 or -2.00% to 0.60132


  • USDJPY increased 1.792 or 1.26% to 144.419


  • USDCNY increased 0.05952 or 0.86% to 6.97642


Precious Metals:


l Gold decreased 20.83 USD/t oz. or -1.21% to 1,703.24


l Silver decreased 0.336 USD/t. oz or -1.70% to 19.444


Some economic news from last night:




BSI Large Manufacturing Conditions (Q3) increased from -9.9 to 1.7


PPI (MoM) (Aug) decreased from 0.7% to 0.2%


PPI (YoY) (Aug) remain the same at 9.0%




Westpac Consumer Sentiment (Sep) increased from -3.0% to 3.9%


NAB Business Confidence (Aug) increased from 8 to 10


NAB Business Survey (Aug) remain the same at 20


New Zealand:


FPI (MoM) (Aug) decreased from 2.1% to 1.1%


No economic news from today:



The proportion of Britain’s workforce that is too ill to work has jumped to its highest level since 2005, which economists say is likely due to a combination of a long period of COVID and greater difficulties accessing healthcare since the pandemic began. A record 2.464 million people aged 16-64 cited long-term illness as the reason they did not work or look for work in the three months to July, figures from the Office for National Statistics showed on Tuesday. This equates to 5.9% of the working-age population – the highest share since the three months to June 2005, which has accelerated in recent months. Higher rates of long-term sickness and a wider rise in workforce inactivity – now the highest since 2017 – have become a growing concern for the Bank of England. In absolute terms, the number of long-term sick and unemployed people of working age increased by 352,000 since the start of the pandemic and by 127,000 in the three months to April.

The major Europe stock markets had a negative day:


  • CAC 40 decreased 87.90 points or -1.39% to 6,245.69


  • FTSE 100 decreased 87.17 points or -1.17% to 7,385.86


  • DAX 30 decreased 213.32 points or -1.59% to 13,188.95


The major Europe currency markets had a mixed day today:


  • EURUSD decreased 0.01208 or -1.19% to 1.00072


  • GBPUSD decreased 0.01432 or -1.23% to 1.15403


  • USDCHF increased 0.00648 or 0.68% to 0.96008


Some economic news from Europe today:




Average Earnings Index +Bonus (Jul) increased from 5.2% to 5.5%


Claimant Count Change (Aug) increased from -14.5K to 6.3K


Employment Change 3M/3M (MoM) (Jul) decreased from 160K to 40K


Unemployment Rate (Jul) decreased from 3.8% to 3.6%




German CPI (MoM) (Aug) decreased from 0.9% to 0.3%


German ZEW Current Conditions (Sep) decreased from -47.6 to -60.5


German ZEW Economic Sentiment (Sep) decreased from -55.3 to -61.9




PPI (MoM) (Aug) remain the same at -0.1%


PPI (YoY) (Aug) decreased from 6.3% to 5.5%




Spanish CPI (YoY) (Aug) decreased from 10.8% to 10.5%


Spanish HICP (YoY) (Aug) decreased from 10.7% to 10.5%




Italian Quarterly Unemployment Rate decreased from 8.6% to 8.1%


Euro Zone:


ZEW Economic Sentiment (Sep) decreased from -54.9 to -60.7



The US CPI report tanked the markets this Tuesday after August posted a 0.1% increase and now stands at 8.3%. Some were hopeful that the decline in energy prices would cool inflation as energy fell 5% and the gas index declined 10.6%. However, food and shelter costs offset this decline. Shelter, the main component of CPI, rose 0.7% for the month and 6.2% YoY. The food index rose by 0.8% for the month and medical expenses also saw a notable rise of 0.8%. The Dow fell 800 points in early trading after the news was released. Many are now anticipating a 75 bps hike at the next FOMC meeting.

US Market Closings:

  • Dow declined 1,276.37 points or -3.94% to 31,104.97
  • S&P 500 declined 177.72 points or -4.32% to 3,932.69
  • Nasdaq declined 632.84 points or -5.16% to 11,633.57
  • Russell 2000 declined 74.51 points or -3.91% to 1,831.57


Canada Market Closings:

  • TSX Composite declined 341.83 points or -1.71% to 19,645.4
  • TSX 60 declined 20.58 points or -1.7% to 1,187.21


Brazil Market Closing:

  • Bovespa declined 2,612.59 points or -2.3% to 110,793.96




The oil markets had a mixed day today:


Crude Oil decreased 1.378 USD/BBL or -1.57% to 86.402


Brent decreased 1.687 USD/BBL or -1.79% to 92.313


Natural gas increased 0.0937 USD/MMBtu or 1.14% to 8.3427


Gasoline decreased 0.0017 USD/GAL or -0.07% to 2.4431


Heating oil decreased 0.0879 USD/GAL or -2.44% to 3.5152


The above data was collected around 12:19 EST on Tuesday


l Top commodity gainers: Palm Oil (5.84%), Aluminum (1.58%), Lean Hogs (2.15%) and Rubber (1.81%)


l Top commodity losers: Orange Juice (-6.43%), Oat (-11.20%), Palladium (-6.74%) and Cotton (-3.38%)


The above data was collected around 12:24 EST on Tuesday






Japan 0.245%(+0bp), US 2’s 3.78% (+0.206%), US 10’s 3.4428% (+8.08bps); US 30’s 3.54% (+0.029%), Bunds 1.729% (+8.4bp), France 2.292% (+6.9bp), Italy 3.997% (+4.2bp), Turkey 11.11% (+0bp), Greece 4.238% (+2.3bp), Portugal 2.797% (+8.6bp); Spain 2.875% (+7.3bp) and UK Gilts 3.1700% (+8.8bp).