Market Talk – June 2, 2022

ASIA:

India has allowed wheat shipments of 469,202 tonnes since banning most exports last month, but at least 1.7 million tonnes is lying at ports and could be damaged by looming monsoon rains, Reuters reported. Shipments that have been allowed moved mainly to Bangladesh, the Philippines, Tanzania and Malaysia, said a senior government official, who also stated the total quantity. Before the ban, exporters moved unusually large quantities to ports, because the crop was then expected to be strong and the government was encouraging them to replace Black Sea supply lost because of the war in Ukraine.

The major Asian stock markets had a mixed day today:

• NIKKEI 225 decreased 44.01 points or -0.16% to 27,413.88
• Shanghai increased 13.30 points or 0.42% to 3,195.46
• Hang Seng decreased 212.81 points or -1.00% to 21,082.13
• ASX 200 decreased 58.10 points or -0.80% to 7,175.90
• Kospi decreased 26.91 points or -1.00% to 2,658.99
• SENSEX increased 436.94 points or 0.79% to 55,818.11
• Nifty50 increased 105.25 points or 0.64% to 16,628.00

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.00776 or 1.08% to 0.72512
• NZDUSD increased 0.00707 or 1.09% to 0.65500
• USDJPY decreased 0.29 or -0.22% to 129.866
• USDCNY decreased 0.04089 or -0.61% to 6.65923

Precious Metals:

• Gold increased 21.67 USD/t oz. or 1.17% to 1,867.22
• Silver increased 0.445 USD/t. oz or 2.04% to 22.245

Some economic news from last night:

Japan:

Foreign Bonds Buying decreased from 628.6B to -1,138.9B

Foreign Investments in Japanese Stocks decreased from 4.2B to 0.9B

Monetary Base (YoY decreased from 6.6% to 4.6%

South Korea:

Nikkei Manufacturing PMI (May) decreased from 52.1 to 51.8

Australia:

Exports (MoM) (Apr) increased from 0% to 1%

Imports (MoM) (Apr) increased from -5% to -1%

Retail Sales (MoM) decreased from 1.6% to 0.9%

Trade Balance (Apr) increased from 9.314B to 10.495B

New Zealand:

Terms of Trade – Exports Prices (Q1) increased from 2.8% to 7.8%

Terms of Trade – Exports Volume (QoQ) (Q1) decreased from -0.6% to -7.0%

Terms of Trade – Imports Prices (Q1) increased from 3.7% to 7.2%

Terms of Trade Index (QoQ) (Q1) increased from -0.9% to 0.5%

Some economic news from today

India:

Exports (USD) (May) decreased from 40.19B to 37.30B

Imports (USD) (May) increased from 60.30B to 60.62B

Trade Balance (May) decreased from -20.11B to -23.33B

EUROPE/EMEA:

Spain’s jobless number dropped below 3 million in May for the first time since early in the 2008/09 global financial crisis, as the economy’s recovery from the impact of COVID-19 boosted hirings and pushed many workers out of the shadow economy. The number of people registering as jobless fell 3.29% from April, leaving 2.92 million people out of work, the lowest number since November 2008, Labor Ministry data showed on Thursday. Spain added 33,366 net jobs during the month, separate data from Social Security Ministry showed. The number of jobs in the formal economy had already hit an all-time record in April.

The major Europe stock markets had a green day:

• CAC 40 increased 81.55 points or 1.27% to 6,500.44
• FTSE 100 closed
• DAX 30 increased 144.70 points or 1.01% to 14,485.17

The major Europe currency markets had a mixed day today:

• EURUSD increased 0.00895 or 0.84% to 1.07415
• GBPUSD increased 0.00942 or 0.75% to 1.25772
• USDCHF decreased 0.00417 or -0.43% to 0.95890

Some economic news from Europe today:

Spain:

Spanish Unemployment Change decreased from -86.3K to -99.5K

Swiss:

CPI (YoY) (May) increased from 2.5% to 2.9%

CPI (MoM) (May) increased from 0.4% to 0.7%

Euro Zone:

PPI (YoY) (Apr) increased from 36.9% to 37.2%

PPI (MoM) (Apr) decreased from 5.3% to 1.2%

US/AMERICAS:

Private payrolls in the US fell short of estimates after rising by 128,000 this May. Analysts had anticipated a rise of 299,000. April’s figure was revised down to reflect 202,000 positions compared to the initial report of 247,000. “Under a backdrop of a tight labor market and elevated inflation, monthly job gains are closer to pre-pandemic levels,” ADP’s chief economist, Nela Richardson, said. “The job growth rate of hiring has tempered across all industries, while small businesses remain a source of concern as they struggle to keep up with larger firms that have been booming as of late.”

Education and health services led job creation after incorporating an additional 46,000 positions, followed by business and professional services which saw an increase of 23,000. Manufacturing increased by 22,000, good producers rose by 24,000, and the leisure and hospitality sector saw an uptick of 17,000. The ADP report comes a day prior to the highly anticipated BLS nonfarm payrolls report for May that is expected to show a rise of 428,000 jobs.

Weekly jobless claims in the US for the week ending on May 28 reached 200,000, according to the Labor Department. This marks an 11,000 decline from the week prior. Continuing claims fell as well to 1.31 million – the lowest level since 1969.

US Market Closings:

• Dow advanced 435.05 points or 1.33% to 33,248.28
• S&P 500 advanced 75.59 points or 1.84% to 4,176.82
• Nasdaq advanced 322.44 points or 2.69% to 12,316.9
• Russell 2000 advanced 42.85 points or 2.31% to 1,897.67

Canada Market Closings:

• TSX Composite advanced 318.09 points or 1.54% to 21,031.81
• TSX 60 advanced 17.29 points or 1.38% to 1,271.13

Brazil Market Closing:

• Bovespa advanced 1,032.97 points or 0.93% to 112,392.91

ENERGY:

The oil markets had a green day today:

• Crude Oil increased 1.47 USD/BBL or 1.28% to 116.730
• Brent increased 1.27 USD/BBL or 1.09% to 117.56
• Natural gas increased 0.029 USD/MMBtu or 0.33% to 8.7250
• Gasoline increased 0.1248 USD/GAL or 3.07% to 4.1964
• Heating oil increased 0.0747 USD/GAL or 1.80% to 4.2180

The above data was collected around 13:31 EST on Thursday

• Top commodity gainers: Gasoline (3.07%), Copper (5.08%), Cotton (2.60%) and Platinum (2.90%)
• Top commodity losers: Cheese (-2.99%), Milk (-3.53%), Cocoa (-1.19%) and Rice (-0.96%)

The above data was collected around 13:38 EST on Thursday.

BONDS:

Japan 0.260%(+2.5bp), US 2’s 2.65% (-0.002%), US 10’s 2.9222% (+1.09bps); US 30’s 3.09% (+0.031%), Bunds 1.237% (+5.6bp), France 1.7570% (+5.4bp), Italy 3.293% (+10.1bp), Turkey 21.49% (+0bp), Greece 3.691% (+8.9bp), Portugal 2.430% (+10bp); Spain 2.405% (+10.8bp) and UK Gilts 2.1540% (+0bp).

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