Market Talk – April 6, 2023

ASIA:

Japanese manufacturers’ sentiment soured in the first quarter to its worst level in more than two years, eclipsing an uptick in service-sector mood, a central bank survey showed, reinforcing views a strong post-COVID economic recovery is some time away. Corporate inflation expectations hit a fresh high with firms projecting inflation to stay above the Bank of Japan’s 2% target five years ahead, the “tankan” showed on Monday.

The major Asian stock markets had a mixed day today:

• NIKKEI 225 decreased 340.63 points or -1.22% to 27,472.63
• Shanghai increased 0.07 points or 0.00% to 3,312.63
• Hang Seng increased 56.61 points or 0.28% to 20,331.20
• ASX 200 decreased 18.20 points or -0.25% to 7,219.00
• Kospi decreased 35.98 points or -1.44% to 2,459.23
• SENSEX increased 143.66 points or 0.24% to 59,832.97
• Nifty50 increased 42.10 points or 0.24% to 17,599.15

The major Asian currency markets had a mixed day today:

• AUDUSD decreased 0.00514 or -0.77% to 0.66666
• NZDUSD decreased 0.00722 or -1.14% to 0.62438
• USDJPY increased 0.377 or 0.29% to 131.687
• USDCNY increased 0.00052 or 0.01% to 6.88372

Precious Metals:

• Gold decreased 9.94 USD/t oz. or -0.49% to 2,010.41
• Silver decreased 0.107 USD/t. oz or -0.43% to 24.869

Some economic news from last night:

China:

Caixin Services PMI (Mar) increased from 55.0 to 57.8

Australia:

Trade Balance (Feb) increased from 11,266B to 13.870B

Some economic news from today:

India:

Interest Rate Decision remain the same at 6.50%

EUROPE/EMEA:

The European Central Bank will need to raise interest rates again in May if inflation develops along the path seen in the bank’s March economic projections, ECB chief economist Philip Lane told the Cyprus News Agency.  The ECB has raised rates by a combined 350 basis points since July but did not provide specific guidance for its May 4 meeting, arguing that turbulence in the financial sector required extra caution.

The major Europe stock markets had a green day:

• CAC 40 increased 8.45 points or 0.12% to 7,324.75
• FTSE 100 increased 78.62 points or 1.03% to 7,741.56
• DAX 30 increased 77.72 points or 0.50% to 15,597.89

The major Europe currency markets had a mixed day today:

• EURUSD increased 0.00213 or 0.20% to 1.09243
• GBPUSD decreased 0.00137 or -0.11% to 1.24433
• USDCHF decreased 0.00258 or -0.28% to 0.90432

Some economic news from Europe today:

Swiss:

Unemployment Rate n.s.a. (Mar) decreased from 2.1% to 2.0%

Unemployment Rate s.a. (Mar) remain the same at 1.9%

Germany:

German Industrial Production (MoM) (Feb) decreased from 3.7% to 2.0%

UK:

Halifax House Price Index (YoY) (Mar) decreased from 2.1% to 1.6%

Halifax House Price Index (MoM) (Mar) decreased from 1.2% to 0.8%

Construction PMI (Mar) decreased from 54.6 to 50.7

US/AMERICAS:

The Canadian labor market remains tight, as indicated by the latest report from Statistics Canada. Employment among working-aged individuals rose by 34,700 this March, surpassing estimates and leaving the unemployment rate stagnant at 5%. Around 21,800 new job positions were added to Canada’s economy in February. When using the US Labor Department’s calculations for unemployment, the rate for March from MoM to 4.1% from 4%. Hourly earnings rose 5.3% this March on an annualized basis, while total hours worked rose 0.4% on the monthly. The Bank of Canada will meet next week to discuss monetary policy, where they are largely expected to maintain rates.

US Market Closings:

• Dow advanced 2.57 points or 0.01% to 33,485.29
• S&P 500 advanced 14.64 points or 0.36% to 4,105.02
• Nasdaq advanced 91.1 points or 0.76% to 12,087.96
• Russell 2000 advanced 2.33 points or 0.13% to 1,754.46

Canada Market Closings:

• TSX Composite advanced 37.14 points or 0.18% to 20,196.69
• TSX 60 advanced 2.06 points or 0.17% to 1,215.99

Brazil Market Closing:

• Bovespa declined 156.12 points or -0.15% to 100,821.73

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 0.038 USD/BBL or 0.05% to 80.648
• Brent increased 0.004 USD/BBL or 0.00% to 84.994
• Natural gas decreased 0.0611 USD/MMBtu or -2.84% to 2.0939
• Gasoline decreased 0.0161 USD/GAL or -0.57% to 2.8040
• Heating oil decreased 0.0419 USD/GAL or -1.53% to 2.6891

The above data was collected around 11:42 EST on Thursday

• Top commodity gainers: Sugar (2.09%), Cotton (2.68%), Palladium (1.68%) and Rhodium (7.53%)
• Top commodity losers: Natural Gas (-2.84%), Heating Oil (-1.53%), Methanol (-2.74%) and Lumber (-1.74%)

The above data was collected around 11:49 EST Thursday.

BONDS:

Japan 0.471% (-0.2bp), US 2’s 3.80% (+0.035%), US 10’s 3.2902% (+0.32bps); US 30’s 3.54% (-0.014%), Bunds 2.187% (+0.8bp), France 2.705% (+1.7bp), Italy 4.035% (+2.4bp), Turkey 11.27% (+120bp), Greece 4.123% (-1.2bp), Portugal 3.072% (+1.8bp); Spain 3.233% (+2.4bp) and UK Gilts 3.435% (+0.6bp).

The post Market Talk – April 6, 2023 first appeared on Armstrong Economics.