Market Talk – June 12, 2023

ASIA:

The 10th Arab-China Business Conference commenced with the signing of 30 investment agreements totaling $10 billion in various sectors. These agreements cover areas such as technology, renewables, agriculture, real estate, minerals, supply chains, tourism, and healthcare. The Saudi government signed deals with multiple Chinese entities, encompassing projects like automotive research and development, tourism app development, and the production of rail wagons and wheels in Saudi Arabia. The conference, organized by Saudi Arabia’s investment and foreign ministries in partnership with the Arab League, the Chinese Council for the Promotion of International Trade, and the Union of Arab Chambers, attracted over 3,500 participants from 26 countries. The event featured plenaries, workshops, special meetings, and side events addressing topics such as environmental sustainability, social responsibility, governance, and supply chain resilience.

The major Asian stock markets had a mixed day today:

• NIKKEI 225 increased 168.83 points or 0.52% to 32,434.00
• Shanghai decreased 2.57 points or -0.08% to 3,228.83
• Hang Seng increased 14.36 points or 0.07% to 19,404.31
• ASX 200 closed
• Kospi decreased 11.81 points or -0.45% to 2,629.35
• SENSEX increased 99.08 points or 0.16% to 62,724.71
• Nifty50 increased 38.10 points or 0.21% to 18,601.50

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.00117 or 0.17% to 0.67507
• NZDUSD decreased 0.00074 or -0.12% to 0.61176
• USDJPY increased 0.294 or 0.21% to 139.634
• USDCNY increased 0.0145 or 0.20% to 7.15790

Precious Metals:

• Gold decreased 4.14 USD/t oz. or -0.21% to 1,956.46
• Silver decreased 0.262 USD/t. oz or -1.08% to 24.005

Some economic news from last night:

New Zealand:

Electronic Card Retail Sales (MoM) (May) decreased from 0.4% to -1.7%

Some economic news from today:

India:

CPI (YoY) (May) decreased from 4.70% to 4.25%

EUROPE/EMEA:

Spain’s Economy Minister, Nadia Calvino, stated that the country will not reintroduce the value-added tax (VAT) on essential food items until prices become more reasonable. In January, the government eliminated the 4% VAT on essential foods, including bread, cheese, milk, fruits, vegetables, and cereals, in response to rising food prices. This measure was part of a 10 billion euros package aimed at mitigating the impact of price hikes on consumers, but it is set to expire at the end of the current month. The cost of food and non-alcoholic beverages increased by 12.9% between April of the previous year and April of the current year, indicating a 3.5 percentage point rise compared to the previous 12-month period. Following the Socialist Party’s defeat in municipal and regional elections on May 28, Spain is now heading towards a snap general election scheduled for July 23.

The major Europe stock markets had a green day today:

• CAC 40 increased 37.21 points or 0.52% to 7,250.35
• FTSE 100 increased 8.33 points or 0.11% to 7,570.69
• DAX 30 increased 148.03 points or 0.93% to 16,097.87

The major Europe currency markets had a mixed day today:

• EURUSD increased 0.00083 or 0.08% to 1.07553
• GBPUSD decreased 0.00644 or -0.51% to 1.25046
• USDCHF increased 0.00604 or 0.67% to 0.90984

No economic news from Europe today:

US/AMERICAS:

The Federal Trade Commission (FTC) is seeking to block Microsoft’s $69 billion acquisition of Activision Blizzard, alleging that the deal would enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business. The FTC’s Bureau of Competition director, Holly Vedova, said that “Microsoft has already shown that it can and will withhold content from its gaming rivals” and that the FTC seeks to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets. The U.K.’s Competition and Markets Authority has also expressed skepticism about the deal. Microsoft is attempting to persuade regulators around the world to clear the acquisition, and it is almost certain to make a settlement offer. The company announced plans to acquire Activision Blizzard for $68.7 billion in January, with the goal of closing it by June 2023.

US Market Closings:

• Dow advanced 189.55 points or 0.56% to 34,066.33
• S&P 500 advanced 40.07 points or 0.93% to 4,338.93
• Nasdaq advanced 202.78 points or 1.53% to 13,461.91
• Russell 2000 advanced 7.51% to 0.4% to 1,873.21

Canada Market Closings:

• TSX Composite advanced 29.25 points or 0.15% to 19,921.31
• TSX 60 advanced 2.16 points or 0.18% to 1,198.19

Brazil Market Closing:

• Bovespa advanced 316.86 points or 0.27% to 117,336.34

ENERGY:

The oil markets had a negative day today:

• Crude Oil decreased 3.006 USD/BBL or -4.28% to 67.164
• Brent decreased 2.683 USD/BBL or -3.59% to 72.108
• Natural gas decreased 0.0061 USD/MMBtu or -0.27% to 2.2479
• Gasoline decreased 0.109 USD/GAL or -4.20% to 2.4842
• Heating oil decreased 0.048 USD/GAL or -2.03% to 2.3130

The above data was collected around 14:09 EST on Monday

• Top commodity gainers: Oat (1.87%), Corn (2.35%), Rice (3.26%) and Palladium (1.57%)
• Top commodity losers: Zinc (-2.87%), Crude Oil (-4.28%), Gasoline (-4.20%) and Brent (-3.59%)

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

BONDS:

Japan 0.426% (-0.6bp), US 2’s 4.58% (-0.021%), US 10’s 3.7666% (+2.16bps); US 30’s 3.92% (+0.030%), Bunds 2.372% (-0.8bp), France 2.899% (-2.8bp), Italy 4.06% (-5.9bp), Turkey 16.06% (+51bp), Greece 3.71% (+4.6bp), Portugal 3.07% (-2.5bp); Spain 3.326% (-3.4bp) and UK Gilts 4.34% (+10.3bp).

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