Market Talk – February 13, 2023

ASIA:

Total debts owed by Adani Group add up to Rs 3.39 trillion ($41.1 billion) and are “equivalent to at least 1% of the Indian economy”, an analysis by Nikkei Asia shows. As per calculations by Nikkei, the liabilities attributed to 10 of Adani’s listed group companies, including ACC, Ambuja Cements and New Delhi Television – which the conglomerate purchased last year – add up to 3.39 trillion rupees. Seven listed Adani group companies have lost more than half their market capitalization, which shriveled to less than $100 billion, after a report by Hindenburg Research questioned conglomerate’s debt levels and use of tax havens. The 10 Adani group companies had a collective equity ratio of 25%. One of them, Adani Green Energy, had an equity ratio of just 2% as of March 2022, the Nikkei report said.

The major Asian stock markets had a mixed day today:

• NIKKEI 225 decreased 243.66 points or -0.88% to 27,427.32
• Shanghai increased 23.49 points or 0.72% to 3,284.16
• Hang Seng decreased 26.00 points or -0.12% to 21,164.42
• ASX 200 decreased 15.90 points or -0.21% to 7,417.80
• Kospi decreased 17.03 points or -0.69% to 2,452.70
• SENSEX decreased 250.86 points or -0.41% to 60,431.84
• Nifty50 decreased 85.60 points or -0.48% to 17,770.90

The major Asian currency markets had a green day today:

• AUDUSD increased 0.00474 or 0.69% to 0.69634
• NZDUSD increased 0.00565 or 0.90% to 0.63565
• USDJPY increased 0.983 or 0.75% to 132.393
• USDCNY increased 0.00161 or 0.02% to 6.82421

Precious Metals:

• Gold decreased 11.80 USD/t oz. or -0.63% to 1,852.87
• Silver decreased 0.053 USD/t. oz or -0.24% to 21.940

Some economic news from last night:

Singapore:

GDP (QoQ) (Q4) decreased from 0.8% to 0.3%

GDP (YoY) (Q4) decreased from 4.0% to 2.1%

Some economic news from today:

India:

CPI (YoY) (Jan) increased from 5.72% to 6.52%

EUROPE/EMEA:

Spain, Germany, France, Italy and Belgium and the European Investment Bank launched on Monday a 3.75 billion euro ($4.02 billion) fund to finance the growth of promising European tech companies and boost the EU’s attractiveness as an innovation hub. The fund is aimed at addressing one of the common problems of successful European start-ups, which often cannot expand in Europe for lack of a better functioning capital market and choose to move to the United States to grow. The fund, called the European Tech Champions Initiative (ETCI), will pool public resources from participating countries and the EIB to invest in large-scale venture capital funds. Spain, Germany, and France each contributed 1 billion euros, Italy contributed 150 million euros and Belgium 100 million euros. The EIB provided 500 million euros.

The major Europe stock markets had a green day:

• CAC 40 increased 78.86 points or 1.11% to 7,208.59
• FTSE 100 increased 65.15 points or 0.83% to 7,947.60
• DAX 30 increased 89.36 points or 0.58% to 15,397.34

The major Europe currency markets had a mixed day today:

• EURUSD increased 0.00468 or 0.44% to 1.07218
• GBPUSD increased 0.0078 or 0.65% to 1.21360
• USDCHF decreased 0.00385 or -0.42% to 0.91975

Some economic news from Europe today:

Swiss:

CPI (MoM) (Jan) increased from -0.2% to 0.6%

US/AMERICAS:

The markets are awaiting Tuesday’s consumer price index report. However, recent warehouse data indicates that the supply chain halt from the pandemic has left US distribution centers overpacked with goods. Storage prices rose 1.4% on a monthly basis and 10.6% annually, according to WarehouseQuote. Experts believe the demand for temporary warehousing space will grow and the additional costs, per usual, will pass on to consumers.

US Market Closings:

• Dow advanced 376.66 points or 1.11% to 34,245.93
• S&P 500 advanced 46.83 points or 1.14% to 4,137.29
• Nasdaq advanced 173.67 points or 1.48% to 11,891.78
• Russell 2000 advanced 22.33 points or 1.16% to 1,941.14

Canada Market Closings:

• TSX Composite advanced 90.11 points or 0.44% to 20,702.23
• TSX 60 advanced 5.43 points or 0.44% to 1,249.82

Brazil Market Closing:

• Bovespa advanced 933.83 points or 0.87% to 108,836.47

ENERGY:

The oil markets had a mixed day today:

• Crude Oil decreased 0.36 USD/BBL or -0.45% to 79.360
• Brent decreased 0.477 USD/BBL or -0.55% to 85.913
• Natural gas decreased 0.0809 USD/MMBtu or -3.22% to 2.4331
• Gasoline increased 0.0135 USD/GAL or 0.54% to 2.5172
• Heating oil increased 0.0331 USD/GAL or 1.16% to 2.8977

The above data was collected around 15:42 EST on Monday

• Top commodity gainers: Coffee (1.32%), HRC Steel (3.72%), Palladium (1.66%) and Cocoa (2.22%)
• Top commodity losers: Sugar (-1.76%), Methanol (-1.35%), Orange Juice (-7.80%) and Natural Gas (-3.22%)

The above data was collected around 15:47 EST Monday.

BONDS:

Japan 0.500% (+0.5bp), US 2’s 4.53% (+0.021%), US 10’s 3.7149% (-2.81bps); US 30’s 3.79% (-0.033%), Bunds 2.364% (-0.3bp), France 2.818% (-1.5bp), Italy 4.177% (-3.5bp), Turkey 11.08% (+5bp), Greece 4.216% (+0.4bp), Portugal 3.237% (-1.1bp); Spain 3.384% (-1.8bp) and UK Gilts 3.404% (+0.3bp).

The post Market Talk – February 13, 2023 first appeared on Armstrong Economics.