Market Talk – March 20, 2023

ASIA:

A new report suggests that China is reducing its imports from the United States, with a decline in US exports to China in 2022, despite suggestions of record trade. The worsening of relations between the US and China since the Trump administration began imposing import tariffs on Chinese goods in 2018 has contributed to the shift. The US Bureau of Economic Analysis reveals that US exports to China increased by $2.4 billion in 2022 to $153.8 billion, while American imports from China rose by $31.8 billion to $536.8 billion.

The major Asian stock markets had a negative day today:

• NIKKEI 225 decreased 388.12 points or -1.42% to 26,945.67
• Shanghai decreased 15.64 points or -0.48% to 3,234.91
• Hang Seng decreased 517.88 points or -2.65% to 19,000.71
• ASX 200 decreased 96.30 points or -1.38% to 6,898.50
• Kospi decreased 16.49 points or -0.69% to 2,379.20
• SENSEX decreased 360.95 points or -0.62% to 57,628.95
• Nifty50 decreased 111.65 points or -0.65% to 16,988.40

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.00192 or 0.29% to 0.67142
• NZDUSD decreased 0.00145 or -0.23% to 0.62435
• USDJPY decreased 0.021 or -0.02% to 131.769
• USDCNY decreased 0.01 or -0.15% to 6.87930

Precious Metals:

• Gold decreased 16.00 USD/t oz. or -0.80% to 1,971.93
• Silver decreased 0.127 USD/t. oz or -0.56% to 22.463

Some economic news from last night:

China:

PBoC Loan Prime Rate remain the same at 3.65%

EUROPE/EMEA:

The European Investment Bank (EIB) is temporarily lifting its 4-year ban on financing in Turkey to provide €500 million ($540 million) for the country’s post-earthquake reconstruction efforts. The EIB had halted most lending to Turkey following a dispute over oil and gas drilling off Cyprus in 2019, but has decided to make an exception due to the severity of the recent earthquake in the country, which caused significant damage and loss of life. Commission President Ursula von der Leyen announced that the overall package by the Commission and EIB would total €1 billion ($1.1 billion).

The major Europe stock markets had a green day:

• CAC 40 increased 87.74 points or 1.27% to 7,013.14
• FTSE 100 increased 68.45 points or 0.93% to 7,403.85
• DAX 30 increased 165.18 points or 1.12% to 14,933.38

The major Europe currency markets had a green day today:

• EURUSD increased 0.00529 or 0.50% to 1.07189
• GBPUSD increased 0.00725 or 0.60% to 1.22475
• USDCHF increased 0.00084 or 0.09% to 0.92664

Some economic news from Europe today:

Germany:

German PPI (MoM) (Feb) increased from -1.2% to -0.3%

Euro Zone:

Trade Balance (Jan) decreased from -8.8B to -30.6B

US/AMERICAS:

The S&P downgraded its credit rating for First Republic from BB+ to B+. Some believe a sale of the bank is possible if they cannot raise capital. Ten banks are helping Republic with a combined deposit of $30 billion. First Republic shares fell to a new 52-week low today after plummeting another 10.89%.

US Market Closings:

• Dow advanced 382.6 points or 1.2% to 32,244.58 points to 32,244.58
• S&P 500 34.93 points or 0.89% to 3,951.57
• Nasdaq advanced 45.03 points or 0.39% to 11.675.54
• Russell 2000 advanced 19.1 points or 1.11% to 1,744.99

Canada Market Closings:

• TSX Composite advanced 131.71 points or 0.68% to 19,519.43
• TSX 60 advanced 8.28 points or 0.71% to 1,172.68

Brazil Market Closing:

• Bovespa declined 1,508.64 pointsor -1.04% to 100,922.89

ENERGY:

The oil markets had a mixed day today:

• Crude Oil decreased 0.391 USD/BBL or -0.59% to 66.349
• Brent decreased 0.023 USD/BBL or -0.03% to 72.947
• Natural gas decreased 0.0676 USD/MMBtu or -2.89% to 2.2704
• Gasoline increased 0.0067 USD/GAL or 0.27% to 2.5082
• Heating oil increased 0.0127 USD/GAL or 0.47% to 2.6914

The above data was collected around 11:35 EST on Monday

• Top commodity gainers: Copper (1.56%), Platinum (1.03%), Oat (2.41%) and Cocoa (1.13%)
• Top commodity losers: Palm Oil (-3.44%), Natural Gas (-2.89%), Rapeseed (-2.35%) and Rhodium (-2.17%)

The above data was collected around 11:40 EST Monday.

BONDS:

Japan 0.250% (-3bp), US 2’s 3.97% (+0.122%), US 10’s 3.4716% (+7.46bps); US 30’s 3.64% (+0.041%), Bunds 2.111% (-1.2bp), France 2.656% (-1.8bp), Italy 3.979% (-6.6bp), Turkey 11.58% (+48bp), Greece 4.098% (-4.8bp), Portugal 3.02% (-4.9bp); Spain 3.190% (-3.3bp) and UK Gilts 3.289% (+0.7bp).

The post Market Talk – March 20, 2023 first appeared on Armstrong Economics.