Market Talk – May 15, 2023

ASIA:

India’s annual wholesale price index (WPI) fell for the first time in nearly three years in April, as prices softened across the board. WPI fell by 0.92% from the same month a year earlier, having risen 1.34% in March. The data compared with a Reuters poll that predicted a fall of 0.20%. In April, the food index rose 0.17% year-on-year, compared with 2.32% in March, while fuel and power rose 0.93% as against a 8.96% rise in the previous month. The decline in the rate of inflation was broad based, primarily driven by falls in prices of crude, energy prices, non-food and food articles, the government said in a statement. Data released on Friday showed India’s annual retail inflation eased to an 18-month low in April, staying well below the Reserve Bank of India’s (RBI) upper tolerance limit for the second consecutive month.

The major Asian stock markets had a green day today:

• NIKKEI 225 increased 238.04 points or 0.81% to 29,626.34
• Shanghai increased 38.37 points or 1.17% to 3,310.74
• Hang Seng increased 343.89 points or 1.75% to 19,971.13
• ASX 200 increased 10.40 points or 0.14% to 7,267.10
• Kospi increased 3.93 points or 0.16% to 2,479.35
• SENSEX increased 317.81 points or 0.51% to 62,345.71
• Nifty50 increased 84.05 points or 0.46% to 18,398.85

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.00565 or 0.85% to 0.67025
• NZDUSD increased 0.00489 or 0.79% to 0.62379
• USDJPY increased 0.347 or 0.26% to 136.057
• USDCNY decreased 0.01156 or -0.17% to 6.95964

Precious Metals:

• Gold increased 5.81 USD/t oz. or 0.29% to 2,016.96
• Silver increased 0.166 USD/t. oz or 0.69% to 24.076

Some economic news from last night:

Australia:

Building Approvals (MoM) (Apr) decreased from 3.9% to -0.1%

Some economic news from today:

India:

WPI Inflation (YoY) (Apr) decreased from 1.34% to -0.92%

EUROPE/EMEA:

Efforts are being made to extend a deal that allows the safe export of Ukrainian grain from the Black Sea, despite Russia threatening to quit the agreement due to obstacles in its own grain and fertilizer exports. The last two ships under the Black Sea deal are scheduled to leave Ukrainian ports on Tuesday. The agreement, brokered by the UN and Turkey in July of the previous year, aimed to address a global food crisis exacerbated by Russia’s invasion of Ukraine, a major grain exporter. The UN also agreed to assist Russia in facilitating its own agricultural shipments. Russia’s UN Ambassador, Vassily Nebenzia, accused Ukrainian officials at a Joint Coordination Center in Istanbul of refusing to discuss the resumption of an ammonia pipeline. Russia claims that restrictions on payments, logistics, and insurance have posed challenges to their exports, despite their exemption from Western sanctions imposed after the 2022 invasion of Ukraine.

The major Europe stock markets had a green day today:

• CAC 40 increased 3.36 points or 0.05% to 7,418.21
• FTSE 100 increased 23.08 points or 0.30% to 7,777.70
• DAX 30 increased 3.42 points or 0.02% to 15,917.24

The major Europe currency markets had a mixed day today:

• EURUSD increased 0.00282 or 0.26% to 1.08762
• GBPUSD increased 0.00716 or 0.57% to 1.25286
• USDCHF decreased 0.00322 or -0.36% to 0.89478

Some economic news from Europe today:

Swiss:

PPI (MoM) (Apr) remain the same at 0.2%

Euro Zone:

Industrial Production (MoM) (Mar) decreased from 1.5% to -4.1%

US/AMERICAS:

Despite a slide in mortgage demand, total consumer debt in the US has surpassed $17 trillion for the first time, according to the Federal Reserve Bank of New York. Total for borrowing reached $17.05 trillion, an rise of nearly $150 billion or 0.9% during the January to March period. The increase in debt was seen across all categories, with larger balances for mortgages, home equity lines of credit, auto loans, student loans, retail cards, and other consumer loans. Credit card debt has risen at the fastest pace of any debt covered in the report, reflecting more people using credit cards to finance day-to-day necessities.

US Market Closings:

• Dow advanced 47.98 points or 0.14% to 33,348.6
• S&P 500 advanced 12.2 points or 0.3% to 4,136.28
• Nasdaq advanced 80.47 points or 0.66% to 12,365.21
• Russell 2000 advanced 20.7 points or 1.19% to 1,761.55

Canada Market Closings:

• TSX Composite advanced 120.35 points or 0.59% to 20,539.97
• TSX 60 advanced 7.41 points or 0.6% to 1,240.66

Brazil Market Closing:

• Bovespa advanced 565.28 points or 0.52% to 109,029.12

ENERGY:

The oil markets had a green day today:

• Crude Oil increased 1.323 USD/BBL or 1.89% to 71.362
• Brent increased 1.228 USD/BBL or 1.66% to 75.398
• Natural gas increased 0.1075 USD/MMBtu or 4.74% to 2.3735
• Gasoline increased 0.0479 USD/GAL or 1.97% to 2.4781
• Heating oil increased 0.0817 USD/GAL or 3.54% to 2.3872

The above data was collected around 14:20 EST on Monday

• Top commodity gainers: Natural Gas (4.74%), Heating Oil (3.54%), Wheat (4.49%) and Coffee (3.47%)
• Top commodity losers: Cocoa (-3.30%), Rice (-3.62%), Canola (-3.54%) and Palm Oil (-0.88%)

The above data was collected around 14:27 EST Monday.

BONDS:

Japan 0.411% (+2.5bp), US 2’s 4.00% (+0.0001%), US 10’s 3.5037% (+4.07bps); US 30’s 3.84% (+0.060%), Bunds 2.307% (+4.1bp), France 2.881% (+2.8bp), Italy 4.19% (+1.6bp), Turkey 12.81% (-129bp), Greece 4.01% (-0.2bp), Portugal 3.145% (+3.9bp); Spain 3.376% (+2.2bp) and UK Gilts 3.817% (+3.5bp).

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