Market Talk – September 22, 2022

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ASIA:

 

India expects to see a total investment of at least $25 billion as a result of its incentive program designed to encourage local manufacturing of chip and display panels, junior IT minister Rajeev Chandrasekhar told reporters on Wednesday. Prime Minister Narendra Modi’s government is seeking to attract more major investment in incentives as part of a $10 billion incentive plan for chip and display manufacturing to make India a key player in the global supply chain. The government has previously agreed to cover 30 to 50% of the cost of setting up new display and chip manufacturing plants. It said on Wednesday it will also cover 50% of the capital expenditure needed to build the semiconductor packaging facility.

 

The major Asian stock markets had a negative day today:

  • NIKKEI 225 decreased 159.30 points or -0.58% to 27,153.83
  • Shanghai decreased 8.27 points or -0.27% to 3,108.91
  • Hang Seng decreased 296.67 points or -1.61% to 18.147.95
  • Kospi decreased 14.90 points or -0.63% to 2,332.31
  • ASX 200 closed
  • SENSEX decreased 337.06 points or -0.57% to 59,119.72
  • Nifty50 decreased 88.55 points or -0.50% to 17,629.80

 

 

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00219 or 0.33% to 0.66327
  • NZDUSD decreased 0.00149 or -0.25% to 0.58371
  • USDJPY decreased 2.151 or -1.49% to 142.220
  • USDCNY increased 0.0146 or 0.21% to 7.08900

 

 

Precious Metals:

  • Gold decreased 3.05 USD/t oz. or -0.18% to 1,670.69
  • Silver decreased 0.1 USD/t. oz or -0.51% to 19.490

 

Some economic news from last night:

Japan:

BoJ Interest Rate Decision remain the same at -0.10%

New Zealand:

Westpac Consumer Sentiment (Q3) increased from 78.7 to 87.6

Exports (Aug) decreased from 6.35B to 5.48B

Imports (Aug) increased from 7.76B to 7.93B

Trade Balance (MoM) (Aug) decreased from -1,406M to -2,447M

Trade Balance (YoY) (Aug) decreased from -11,970M to -12,280M

 

Some economic news from today:

Japan:

BoJ Core CPI (YoY) increased from 1.8% to 1.9%

Hong Kong:

CPI (YoY) (Aug) remain the same at 1.90%

Interest Rate Decision (MoM) increased from 2.75% to 3.50%

India:

M3 Money Supply remain the same at 8.9%

 

 

EUROPE/EMEA:

Eurozone government bond yields hit new multi-year highs after the U.S. Federal Reserve was joined by three European central banks in raising rates on Thursday, with the Fed flagging a steeper than expected tightening path at upcoming meetings. Other central banks are continuing to raise rates, with the Bank of England increasing its key interest rate by 50 basis points (bps) as expected. The Swiss and Norwegian central banks also raised rates on last Thursday. Germany’s 2-year bond yield, which is more sensitive to rate hike expectations, was 10 basis points higher at 1.858%, after earlier hitting its highest since May 2011 at 1.897%. The German 10-year yield reversed an earlier fall and was up 10 bps to 1.991%, its highest since January 2014.

UN Secretary-General Antonio Guterres told a Security Council meeting in Ukraine on Thursday that talk of a nuclear conflict was “totally unacceptable”. He also effectively warned Russia against taking territory, saying that “any annexation of a state’s territory by another state resulting from the threat or use of force is a violation of the UN Charter and international law.” The Security Council has been unable to take any meaningful action against Ukraine because Russia is a permanent member with veto power, along with the United States, France, Britain and China. Thursday’s meeting was at least his 20th about Ukraine this year.

 

 

The major Europe stock markets had a negative day:

  • CAC 40 decreased 112.83 points or -1.87% to 5,918.50
  • FTSE 100 decreased 78.12 points or -1.08% to 7,159.52
  • DAX 30 decreased 235.52 points or -1.84% to 12,531.63

 

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.0009 or -0.09% to 0.98241
  • GBPUSD increased 0.00051 or 0.05% to 1.12587
  • USDCHF increased 0.01633 or 1.69% to 0.98233

 

Some economic news from Europe today:

Swiss:

SNB Interest Rate Decision (Q3) increased from -0.25% to 0.50%

UK:

BoE Interest Rate Decision (Sep) increased from 1.75% to 2.25%

Euro Zone:

Consumer Confidence (Sep) decreased from -25.0 to -28.8

 

US/AMERICAS:

Job claims in the US rose last week for the first time in five weeks, according to new data by the Labor Department. A reported 213,000 jobless claims were filed during the week ending on September 17. Continuing claims (data collected the previous week) declined by 22,000 to 1.37 million. The labor market in the US remains strong. Around 11.25 million Americans were on unemployment last year at this time. However, the Fed believes unemployment will rise as a necessary evil to combat inflation.

US Market Closings:

  • Dow declined 107.1 points or -0.35%  to 30,076.68
  • S&P 500 declined 31.94 points or -0.84% to 3,757.99
  • Nasdaq declined 153.39 points or -1.37% to 11,066.81
  • Russell 2000 declined 39.85 points or -2.26% to 1,722.31

 

Canada Market Closings:

  • TSX Composite declined 181.86 points or -0.95% to 19,002.68
  • TSX 60 declined 7.71 points or -0.66% yo 1,152.82

 

Brazil Market Closing:

  • Bovespa advanced 2,134.62 points or 1.91% to 114,070.48

 

ENERGY:

 

The oil markets had a mixed day today:

 

  • Crude Oil increased 0.935 USD/BBL or 1.13% to 83.875
  • Brent increased 1.06 USD/BBL or 1.18% to 90.891
  • Natural gas decreased 0.2374 USD/MMBtu or -3.05% to 7.5416
  • Gasoline increased 0.0335 USD/GAL or 1.35% to 2.5200
  • Heating oil increased 0.0918 USD/GAL or 2.75% to 3.4256

 

The above data was collected around 11:36 EST on Thursday

 

  • Top commodity gainers: Heating Oil (2.75%), Methanol (2.54%), Bitumen (1.75%) and Steel (2.33%)
  • Top commodity losers: Cocoa (-1.45%), Palm Oil (-1.57%), Natural Gas (-3.05%) and Lumber (-5.77%)

 

The above data was collected around 11:41 EST on Thursday.

 

 

BONDS:

 

Japan 0.235%(-2bp), US 2’s 4.14% (+0.149%), US 10’s 3.6899% (+17.79bps); US 30’s 3.62% (+0.104%), Bunds 1.972% (+8bp), France 2.532% (+9bp), Italy 4.180% (+5.7bp), Turkey 11.32% (+0bp), Greece 4.510% (+5.6bp), Portugal 3.009% (+6.6bp); Spain 3.123% (+9.9bp) and UK Gilts 3.5030% (+18.9bp).