Market Talk – August 18, 2022

ASIA:

India’s oil imports from Russia fell in July for the first time since March, along with its overall purchases, while supplies from Saudi Arabia rebounded for the first time in five months, data from trade and industry sources showed. Indian refiners lifted more futures from Saudi Arabia as prices were attractive, while prices for Russian supplies rose on strong demand. India shipped 877,400 barrels per day (bpd) of oil from Russia in July, down 7.3% from June, with Moscow remaining its second-largest oil supplier after Iraq. Crude imports from Saudi Arabia to India rose 25.6% to 824,700 bpd in July, the most in three months, data showed, after the producer cut its official selling price (OSP) in June and July compared with May. Saudi Arabia remained the third largest supplier to India. Middle Eastern oil’s share of India’s total imports fell marginally in July as the country cut purchases from Iraq by 9.3% from June to below the 1 million bpd mark for the first time in 10 months, data showed.

The major Asian stock markets had a mixed day today:

 

  • NIKKEI 225 decreased 280.63 points or -0.96% to 28,942.14
  • Shanghai decreased 14.98 points or -0.46% to 3,277.54
  • Hang Seng decreased 158.54 points or -0.80% to 19,763.91
  • ASX 200 decreased 14.90 points or -0.21% to 7,112.80
  • Kospi decreased 8.42 points or -0.33% to 2,508.05
  • SENSEX increased 37.87 points or 0.06% to 60,298.00
  • Nifty50 increased 12.25 points or 0.07% to 17,956.50

 

The major Asian currency markets had a mixed day today:

 

  • AUDUSD decreased 0.00225 or -0.32% to 0.69101

 

  • NZDUSD decreased 0.003 or -0.48% to 0.62500

 

  • USDJPY increased 0.812 or 0.60% to 135.841

 

  • USDCNY increased 0.01481 or 0.22% to 6.80591

 

Precious Metals:

 

l Gold decreased 4.44 USD/t oz. or -0.25% to 1,756.61

 

l Silver decreased 0.343 USD/t. oz or -1.73% to 19.497

 

Some economic news from last night:

 

Japan:

 

Foreign Bonds Buying increased from 829.9B to 1,152.4B

 

Foreign Investments in Japanese Stocks decreased from 61.0B to 45.5B

 

Australia:

 

Employment Change (Jul) decreased from 88.4K to -40.9K

 

Full Employment Change (Jul) decreased from 52.9K to -86.9K

 

Participation Rate (Jul) decreased from 66.8% to 66.4%

 

Unemployment Rate (Jul) decreased from 3.5% to 3.4%

 

Some economic news from today:

 

China:

 

FDI (Jul) decreased from 17.40% to 17.30%

 

EUROPE/EMEA:

A weak UK growth outlook has weighed on the pound all year. That means it hasn’t seen much benefit from the Bank of England starting its rate hike cycle earlier than many of its G10 peers. The pound fell 10 percent against the dollar and a little less than 1 percent against the euro. Economics textbooks suggest that higher interest rates support currencies. That said, there is clear evidence around the world recently that the tone of central bank policy statements has a key directional effect on currency markets, almost regardless of interest rate announcements. The gloomy outlook comes alongside warnings from the BoE’s Monetary Policy Committee that it will continue to raise rates to curb inflation, which is now expected to peak around 13 percent.

The major Europe stock markets had a green day:

 

  • CAC 40 increased 29.08 points or 0.45% to 6,557.40
  • FTSE 100 increased 26.10 points or 0.35% to 7,541.85
  • DAX 30 increased 70.70 points or 0.52% to 13,697.41

 

The major Europe currency markets had a mixed day today:

 

  • EURUSD decreased 0.00904 or -0.89% to 1.00864

 

  • GBPUSD decreased 0.01134 or -0.94% to 1.19322

 

  • USDCHF increased 0.00507 or 0.53% to 0.95667

 

Some economic news from Europe today:

 

Swiss:

 

Trade Balance (Jul) decreased from 3.683B to 3.585B

 

Spain:

 

Spanish Trade Balance decreased from -4.76B to -5.39B

 

Euro Zone:

 

Core CPI (YoY) (Jul) increased from 3.7% to 4.0%

 

CPI (YoY) (Jul) increased from 8.6% to 8.9%

 

CPI (MoM) (Jul) decreased from 0.8% to 0.1%

US/AMERICAS:

Jobless claims in the US are on the decline, according to the Labor Department’s weekly report. Jobless claims reached 250,000 for the week ending on August 13, marking a 2,000 decline. The four-week moving average declined by 2,750 to 246,750. Continuing claims (data collected a week prior), however, increased by 7,000 to 1.437 million.

More data was presented today to indicate that the US real estate market is cooling. Existing home sales fell by 6% in July, according to the National Association of Realtors. Compared to sales in July 2021, there was a 20% decrease in purchases. Experts say the decline is due to a decrease in building due to inflation exacerbated by supply chain issues. Around 1.31 million homes were available across the nation at the end of July, which remains unchanged from the same period last year. The median home price is now $403,800, marking a 10.8% YoY gain.

US Market Closings:

  • Dow advanced 18.72 points or 0.06% to 33,999.04
  • S&P 500 advanced 9.7 points or 0.23% to 4,283.74
  • Nasdaq advanced 27.22 points or 0.21% to 12,965.34
  • Russell 2000 advanced 13.41 points or 0.68% to 2,000.73

 

Canada Market Closings:

  • TSX Composite advanced 83.93 points or 0.42% to 20,265.37
  • TSX 60 advanced 4.49 points or 0.37% to 1,225.82

 

Brazil Market Closing:

  • Bovespa advanced 105.11 points or 0.09% to 113,812.87

 

ENERGY:

 

The oil markets had a green day today:

 

l Crude Oil increased 2.636 USD/BBL or 2.99% to 90.746

 

l Brent increased 3.032 USD/BBL or 3.24% to 96.682

 

l Natural gas increased 0.0976 USD/MMBtu or 1.06% to 9.3416

 

l Gasoline increased 0.0918 USD/GAL or 3.13% to 3.0263

 

l Heating oil increased 0.0443 USD/GAL or 1.22% to 3.6617

 

The above data was collected around 13:18 EST on Thursday

 

l Top commodity gainers: Brent (3.24%), Crude Oil(2.99%), Gasoline (3.13%) and Copper (1.61%)

 

l Top commodity losers: Wheat (-3.55%), Palm Oil(-3.58%), Oat (-4.02%) and Lean Hogs (-4.36%)

 

The above data was collected around 13:25 EST on Thursday.

 

BONDS:

 

Japan 0.199%(+1.5bp), US 2’s 3.24% (-0.058%), US 10’s 2.8840% (-1.1bps); US 30’s 3.14% (-0.009%), Bunds 1.110% (+3.2bp), France 1.6870% (+3.2bp), Italy 3.3360% (+2.2bp), Turkey 16.67% (+36bp), Greece 3.544% (+3.4bp), Portugal 2.192% (+5.5bp); Spain 2.301% (+7.8bp) and UK Gilts 2.3320% (+4.3bp).

The post Market Talk – August 18, 2022 first appeared on Armstrong Economics.

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