Market Talk – September 9, 2022

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ASIA:

GSMA estimates that between 2022 and 2025, operators in India will invest around ₹1.6 trillion in their networks, underpinning opportunities in the consumer and enterprise segments. Fifth generation technology, or 5G, could benefit the Indian economy by ₹36.4 trillion ($455 billion) between 2023 and 2040, or more than 0.6% of forecast GDP per year, according to an analysis by GSMA Intelligence that reflects the large number of 5G deployments 2040. GSMA research further indicated that 5G will be a key enabler of enterprise digital transformation processes in manufacturing, energy and utilities, banking, transport, healthcare, sports, and retail.

 

The major Asian stock markets had a green day today:

 

  • NIKKEI 225 increased 149.47 points or 0.53% to 28,214.75

 

  • Shanghai increased 26.47 points or 0.82% to 3,262.05

 

  • Hang Seng increased 507.63 points or 2.69% to 19,362.25

 

  • Kospi closed

 

  • ASX 200 increased 45.50 points or 0.66% to 6,894.20

 

  • SENSEX increased 104.92 points or 0.18% to 59,793.14

 

  • Nifty50 increased 34.60 points or 0.19% to 17,833.35

 

The major Asian currency markets had a mixed day today:

 

  • AUDUSD increased 0.00833 or 1.23% to 0.68464

 

  • NZDUSD increased 0.00588 or 0.97% to 0.61118

 

  • USDJPY decreased 1.274 or -0.89% to 142.546

 

  • USDCNY decreased 0.02321 or -0.33% to 6.93769

 

Precious Metals:

 

l Gold increased 10.83 USD/t oz. or 0.63% to 1,718.10

 

l Silver increased 0.261 USD/t. oz or 1.41% to 18.831

 

Some economic news from last night:

 

China:

 

CPI (MoM) (Aug) decreased from 0.5% to -0.1%

 

CPI (YoY) (Aug) decreased from 2.7% to 2.5%

 

PPI (YoY) (Aug) decreased from 4.2% to 2.3%

 

Japan:

 

M2 Money Stock (YoY) remain the same at 3.4%

 

M3 Money Supply (Aug) increased from 2,068.8T to 2,075.5T

 

New Zealand:

 

Electronic Card Retail Sales (YoY) (Aug) increased from -0.5% to 26.9%

 

Electronic Card Retail Sales (MoM) (Aug) increased from -0.2% to 0.9%

 

Some economic news from today:

 

China:

 

Chinese Total Social Financing (Aug) increased from 756.1B to 2,430.0B

 

M2 Money Stock (YoY) (Aug) increased from 12.0% to 12.2%

 

New Loans (Aug) increased from 679.0B to 1,250.0B

 

Outstanding Loan Growth (YoY) (Aug) decreased from 11.0% to 10.9%

 

India:

 

Bank Loan Growth increased from 15.3% to 15.5%

 

Deposit Growth increased from 8.8% to 9.5%

 

FX Reserves, USD decreased from 561.05B to 553.11B

 

EUROPE/EMEA:

The Bank of England has postponed a key interest rate decision following the death of Queen Elizabeth II. It follows moves by several public bodies to change their plans for the coming week following the death of Britain’s longest-reigning monarch. Economists had predicted the Bank of England would raise rates to 2.25%, the highest level since December 2008.

 

The major Europe stock markets had a green day:

 

  • CAC 40 increased 86.43 points or 1.41% to 6,212.33

 

  • FTSE 100 increased 89.01 points or 1.23% to 7,351.07

 

  • DAX 30 increased 183.89 points or 1.43% to 13,088.21

 

The major Europe currency markets had a mixed day today:

 

  • EURUSD increased 0.00391 or 0.39% to 1.00484

 

  • GBPUSD increased 0.00712 or 0.62% to 1.15906

 

  • USDCHF decreased 0.01047 or -1.08% to 0.96053

 

Some economic news from Europe today:

 

France:

 

French Industrial Production (MoM) (Jul) decreased from 1.2% to -1.6%

 

Italy:

 

Spanish Industrial Production (YoY) (Jul) decreased from 7.0% to 5.3%

 

US/AMERICAS:

The labor market in the US remains strong as unemployment claims fell by 6,000 last week to 222,000. This marks the lowest level in over three months. Continuing claims, however, continue to rise. Continuing claims rose by 36,000 to 1.47 million, marking a nearly five-month high. Available jobs rose to 11.2 million which is a concern as it doubles the number of people seeking employment.

Canada’s labor market is loosening as Statistics Canada reported that the unemployment rate rose to 5.4% in August from July’s 4.9% posting. The Labour Force Survey (LFS) noted that Canada’s economy eliminated 40,000 jobs last month. Part-time positions are on the rise after posting a 37,500 gain. The education sector saw a notable decline of 50,000 positions, while the construction industry fell by 28,000 jobs. Quebec experienced a gain of 27,000, while Ontario remained flat. BC, Manitoba, and Nova Scotia all reported losses as well. Wages advanced by 5.4%, marking the fastest annual pace in 25 years.  The August LFS marks the third consecutive monthly employment decline for the Canadian economy.

US Market Closings:

  • Dow advanced 377.19 points or 1.19% to 32,151.71
  • S&P 500 advanced 61.18 points or 1.53% to 4,067.36
  • Nasdaq advanced 250.18 points or 2.11% to 12,112.31
  • Russell 2000 advanced 35.94 points or 1.95% to 1,882.85

 

Canada Market Closings:

  • TSX Composite advanced 360.34 points or 1.86% to 19,773.34
  • TSX 60 advanced 22.17 points or 1.89% to 1,196.21

 

Brazil Market Closing:

  • Bovespa advanced 2,384.77 points or 2.17% to 112,300.41

 

ENERGY:

 

The oil markets had a green day today:

 

  • Crude Oil increased 3.201 USD/BBL or 3.83% to 86.741

 

  • Brent increased 3.17 USD/BBL or 3.56% to 92.320

 

  • Natural gas increased 0.0909 USD/MMBtu or 1.15% to 8.0059

 

  • Gasoline increased 0.0963 USD/GAL or 4.10% to 2.4424

 

  • Heating oil increased 0.0389 USD/GAL or 1.10% to 3.5790

 

The above data was collected around 13:35 EST on Friday

 

  • Top commodity gainers: Crude Oil (3.83%), Gasoline (4.10%), Rhodium (6.29%) and Wheat (5.21%)

 

  • Top commodity losers: Lumber (-1.64%) and Oat (-5.44%)

 

The above data was collected around 13:46 EST on Friday

 

 

BONDS:

 

Japan 0.25%(+0.5bp), US 2’s 3.55% (+0.063%), US 10’s 3.3021% (+1.01bps); US 30’s 3.44% (-0.001%), Bunds 1.700% (-1.2bp), France 2.263% (+1bp), Italy 4.005% (+5.6bp), Turkey 11.16% (-2bp), Greece 4.259% (+5.2bp), Portugal 2.775% (+2.5bp); Spain 2.884% (+4.9bp) and UK Gilts 3.0950% (-5.2bp).