Market Talk – August 19, 2022

ASIA:

The major Asian stock markets had a mixed day today:

• NIKKEI 225 decreased 11.81 points or -0.04% to 28,930.33
• Shanghai decreased 19.47 points or -0.59% to 3,258.08
• Hang Seng increased 9.12 points or 0.05% to 19,773.03
• ASX 200 increased 1.70 points or 0.02% to 7,114.50
• Kospi decreased 15.36 points or -0.61% to 2,492.69
• SENSEX decreased 651.85 points or -1.08% to 59,646.15
• Nifty50 decreased 198.05 points or -1.10% to 17,758.45

The major Asian currency markets had a mixed day today:

• AUDUSD decreased 0.00433 or -0.63% to 0.68704
• NZDUSD decreased 0.00823 or -1.31% to 0.61777
• USDJPY increased 1.207 or 0.89% to 137.024
• USDCNY increased 0.03561 or 0.52% to 6.83721

Precious Metals:

Gold  decreased 8.16 USD/t oz. or -0.46% to 1,750.04

Silver decreased 0.401 USD/t. oz or  -2.05% to 19.119

Some economic news from last night:

Japan:

CPI, n.s.a (MoM) (Jul) increased from 0.3% to 0.5%

National Core CPI (YoY) (Jul) increased from 2.2% to 2.4%

National CPI (YoY) (Jul) increased from 2.4% to 2.6%

National CPI (MoM) increased from 0.0% to 0.5%

New Zealand:

Credit Card Spending (YoY) increased from 3.9% to 4.9%

Exports (Jul) increased from 6.27B to 6.68B

Imports (Jul) increased from 7.38B to 7.77B

Trade Balance (MoM) (Jul) increased from -1,102M to -1,092M

Trade Balance (YoY) (Jul) decreased from -10,940M to -11,640M

Some economic news from today:

India:

FX Reserves, USD decreased from 572.98B to 570.74B

EUROPE/EMEA:

The major Europe stock markets had a mixed day:

CAC 40 decreased 61.57 points or -0.94% to 6,495.83

FTSE 100 increased 8.52 points or 0.11% to 7,550.37

DAX 30 decreased 152.89 points or -1.12% to 13,544.52

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.0043 or -0.43% to 1.00469
• GBPUSD decreased 0.01162 or -0.97% to 1.18169
• USDCHF increased 0.00185 or 0.19% to 0.95865

Some economic news from Europe today:

UK:

Core Retail Sales (YoY) (Jul) increased from -6.2% to -3.0%

Core Retail Sales (MoM) (Jul) increased from 0.2% to 0.4%

Retail Sales (MoM) (Jul) increased from -0.2% to 0.3%

Retail Sales (YoY) (Jul) increased from -6.1% to -3.4%

Germany:

German PPI (YoY) (Jul) increased from 32.7% to 37.2%

German PPI (MoM) (Jul) increased from 0.6% to 5.3%

Euro Zone:

Current Account (Jun) increased from -4.5B to 4.2B

Current Account n.s.a. (Jun) increased from -15.4B to 3.2B

US/AMERICAS:

As part of the Inflation Reduction Act, corporations will face a 1% excise tax on buybacks. According to S&P Global data, companies repurchased $881.7 billion in stocks last year, a jump from the $519.8 billion in buybacks in 2020. Estimates state that this new tax will raise $74 billion within ten years. The law will go into effect on January 1, 2023. Some believe companies may boost buybacks during the remainder of the year to avoid the tax.

Retail sales in Canada rose 1.1% to C$63.1 billion this June, according to data released by Statistics Canada. The agency believes July’s data will show a 2% decline in retail sales. Higher prices led to higher sales. Gas prices rose 3.9% in June despite volume declining 1.3%. Core retail sales rose by only 0.2%.

US Market Closings:

• Dow declined 292.3 points or -0.86% to 33,706.74
• S&P 500 declined 55.26 points or -1.29% to 4,228.48
• Nasdaq declined 260.13 points or -2.01% to 12,705.22
• Russell 2000 declined 43.38 points or -2.17% to 1,957.35

Canada Market Closings:

• TSX Composite declined 153.99 points or -0.76% to 20,111.38
• TSX 60 declined 7.89 points or -0.64% to 1,217.93

Brazil Market Closing:

• Bovespa declined 2,316.66 points or -2.04% to 111,496.21

ENERGY:

The oil markets had a green day today:

Crude Oil increased 1.642 USD/BBL or 1.81% to 92.142

Brent increased 0.989 USD/BBL or 1.02% to 97.579

Natural gas increased 0.1455 USD/MMBtu or 1.58% to 9.3335

Gasoline increased 0.0154 USD/GAL or 0.51% to 3.0415

Heating oil increased 0.0588 USD/GAL or 1.61% to 3.7085

The above data was collected around 11:56 EST on Friday

Top commodity gainers: Wheat (2.24%), Crude Oil(1.81%), Rice (2.45%) and Sugar (1.97%)

Top commodity losers: Bitumen (-2.23%), Lumber(-5.85%),  Platinum (-2.55%) and Silver (-2.05%)

The above data was collected around 12:03 EST on Friday.

BONDS:

Japan 0.205%(+0.7bp), US 2’s 3.27% (+0.037%), US 10’s 2.9794% (+9.94bps); US 30’s 3.21% (+0.074%), Bunds 1.230% (+13.2bp), France 1.7970% (+11.9bp), Italy 3.4880% (+16.5bp), Turkey 16.29% (-38bp), Greece 3.695% (+15.7bp), Portugal 2.299% (+13.8bp); Spain 2.373% (+12.7bp) and UK Gilts 2.4110% (+10.1bp).

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