Market Talk – May 4, 2023

ASIA:

The major Asian stock markets had a mixed day today:

• NIKKEI 225 closed
• Shanghai increased 27.18 points or 0.82% to 3,350.46
• Hang Seng increased 249.57 points or 1.27% to 19,948.73
• ASX 200 decreased 4.30 points or -0.06% to 7,193.10
• Kospi decreased 0.46 points or -0.02% to 2,500.94
• SENSEX increased 555.95 points or 0.91% to 61,749.25
• Nifty50 increased 165.95 points or 0.92% to 18,255.80

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.00041 or 0.06% to 0.66731
• NZDUSD increased 0.00519 or 0.83% to 0.62779
• USDJPY decreased 0.751 or -0.56% to 133.929
• USDCNY decreased 0.00168 or -0.02% to 6.91932

Precious Metals:

Gold increased 11.02 USD/t oz. or 0.54% to 2,050.04

Silver increased 0.312 USD/t. oz or 1.22%% to 25.907

Some economic news from last night:

China:

Caixin Manufacturing PMI (Apr) decreased from 50.0 to 49.5

Australia:

Trade Balance (Mar) increased from 14.151B to 15.269B

New Zealand:

Building Consents (MoM) (Mar) increased from -9.4% to 7.0%

Some economic news from today:

India:

M3 Money Supply decreased from 10.0% to 9.5%

Hong Kong:

Retail Sales (YoY) (Mar) increased from 31.3% to 40.9%

EUROPE/EMEA:

The major Europe stock markets had a negative day today:

• CAC 40 decreased 63.06 points or -0.85% to 7,340.77
• FTSE 100 decreased 85.73 points, or -1.10% to 7,702.64
• DAX 30 decreased 80.82 points or -0.51% to 15,734.24

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.00483 or -0.44% to 1.10107
• GBPUSD increased 0.00125 or 0.10% to 1.25765
• USDCHF increased 0.00235 or 0.27% to 0.88605

Some economic news from Europe today:

Germany:

German Trade Balance (Mar) increased from 16.1B to 16.7B

German Services PMI (Apr) increased from 53.7 to 56.0

Spain:

Spanish Unemployment Change decreased from -48.8K to -73.9K

Spanish Services PMI (Apr) decreased from 59.4 to 57.9

Italy:

Italian Services PMI (Apr) increased from 55.7 to 57.6

France:

French Services PMI (Apr) increased from 53.9 to 54.6

Euro Zone:

S&P Global Composite PMI (Apr) increased from 53.7 to 54.1

Services PMI (Apr) increased from 55.0 to 56.2

Deposit Facility Rate (May) increased from 3.00% to 3.25%

ECB Marginal Lending Facility increased from 3.75% to 4.00%

ECB Interest Rate Decision (May) increased from 3.50% to 3.75%

UK:

Services PMI (Apr) increased from 52.9 to 55.9

Composite PMI (Apr) increased frm 52.2 to 54.9

US/AMERICAS:

Following the announcement that TD Bank and First Horizon had mutually decided to call off their merger, First Horizon’s shares dropped more than 40% during midday trading. The acquisition was abandoned because of a drawn-out regulatory approval procedure, which would have created America’s sixth-largest bank. First Horizon’s stock had dropped below the agreed upon price, and TD Bank was unable to obtain a timeline for regulatory clearances. The agreement was jointly abandoned by the banks, and as a result, the stock, which had been trading at $15.05 per share on Wednesday, fell another 50% in premarket trade on Thursday. A $200 million breakup fee and $25 million in reimbursement expenses will be paid by TD Bank to First Horizon. The failed merger was “unfortunate and unexpected,” according to Bryan Jordan, CEO of First Horizon.

US Market Closings:

• Dow declined 286.5 points or -0.86% to 33,127.74
• S&P 500 declined 29.53 points or -0.72% to 4,061.22
• Nasdaq declined 58.93 points or -0.49% to 11,966.4
• Russell 2000 declined 20.47 points or -1.18% to 1,718.81

Canada Market Closings:

• TSX Composite declined 116.49 points or -0.57% to 20,238.19
• TSX 60 declined 5.7 points or -0.46% to 1,222.3

Brazil Market Closing:

• Bovespa advanced 377.25 points or 0.37% to 102,174.34

ENERGY:

The oil markets had a mixed day today:

• Crude Oil decreased 0.35 USD/BBL or -0.51% to 68.250
• Brent decreased 0.009 USD/BBL or -0.01% to 72.321
• Natural gas decreased 0.0463 USD/MMBtu or -2.13% to 2.1237
• Gasoline decreased 0.013 USD/GAL or -0.56% to 2.3091
• Heating oil increased 0.0083 USD/GAL or 0.37% to 2.2406

The above data was collected around 11:47 EST on Thursday.

Top commodity gainers: Silver (1.22%), Lumber (3.20%), Oat (3.05%), and Cotton (3.81%)

Top commodity losers: Bitumen (-3.06%), Steel (-3.21%), Methanol (-2.60%), and Rhodium (-3.05%)

The above data was collected around 11:53 EST on Thursday.

BONDS:

Japan 0.421%(+2bp), US 2’s 3.72% (-0.215%), US 10’s 3.3243%(-7.87bps); US 30’s 3.71% (+0.015%), Bunds 2.188% (-6.2bp), France 2.798% (-3.7bp), Italy 4.124% (-0.1bp), Turkey 11.92% (-68bp), Greece 4.078% (-2bp), Portugal 3.066% (-4.5bp), Spain 3.29% (-2.8bp) and UK Gilts 3.656% (-3.8bp).

The post Market Talk – May 4, 2023 first appeared on Armstrong Economics.