The US and Japan have agreed to not impose export duties on critical minerals needed for electric vehicle batteries. The agreement is aimed at reinforcing supply chains and reducing dependence on China, which currently dominates the sector. The US law requires 40% of critical minerals in eligible EV batteries to be extracted from countries with free-trade agreements, rising to 80% in 2027, which would have excluded the EU and Japan. Rare earth elements and minerals like lithium are crucial for clean energy, but the US is expected to face supply gaps to meet demand for EV
The major Asian stock markets had a mixed day today:
The major Asian currency markets had a mixed day today:
Some economic news from last night:
Retail Sales (MoM) (Feb) decreased from 1.8% to 0.2%
Some economic news from today:
BoJ Core CPI (YoY) decreased from 3.1% to 2.7%
Bank lending to euro zone companies slowed for the fourth consecutive month in February, with lending to businesses expanding by 5.7% and household credit growth slowing to 3.2%. The slowdown in lending is attributed to an economic downturn and increased caution from lenders. The monthly flow of loans to companies was a negative 2.6 billion euros, and surveys indicate that lending figures could weaken further in the months ahead. Growth in the M3 measure of money circulating in the euro zone also slowed to 2.9%, falling below expectations for 3.2%.
The major Europe stock markets had a green day:
The major Europe currency markets had a green day today:
Some economic news from Europe today:
French Business Survey (Mar) decreased from 105 to 104
Italian Business Confidence (Mar) increased from 103.0 to 104.2
Italian Consumer Confidence (Mar) increased form 104.0 to 105.1
Federal Reserve Board Vice Chair for Supervision Michael S. Barr testified before the Senate Banking Committee this Tuesday, revealing that the situation at Silicon Valley Bank (SVB) was worse than previously thought. The bank run that began on March 9 saw $42 billion withdrawn from the bank. When regulators stepped in on September 10, depositors tried to withdraw an additional $100 billion—and the bank would not have been able to pay. In comparison, SVB had only $175 billion in deposit at the end of 2022. Barr said that SVB was warned in November 2021 of the risk higher interest rates would pose, but they failed to properly mitigate those risks. Barr is now seeking additional regulations for banks with over $100 billion in deposits.
US Market Closings:
Canada Market Closings:
Brazil Market Closing:
The oil markets had a mixed day today:
The above data was collected around 15:11 EST on Tuesday
The above data was collected around 15:16 EST Tuesday.
Japan 0.319% (+2.6bp), US 2’s 4.05% (+0.046%), US 10’s 3.5544% (+2.64bps); US 30’s 3.77% (+0.014%), Bunds 2.294% (+6.7bp), France 2.81% (+6.2bp), Italy 4.141% (+8bp), Turkey 10.91% (-83bp), Greece 4.205% (+4.5bp), Portugal 3.182% (+7bp); Spain 3.332% (+6.8bp) and UK Gilts 3.454% (+8.9bp).
The post Market Talk – March 28, 2023 first appeared on Armstrong Economics.