Market Talk – June 21, 2023

ASIA:

The major Asian stock markets had a mixed day today:

• NIKKEI 225 increased 186.23 points or 0.56% to 33,575.14
• Shanghai decreased 42.46 points or -1.31% to 3,197.90
• Hang Seng decreased 388.73 points or 1.98% to 19,218.35
• ASX 200 decreased 42.90 points or -0.58% to 7,314.90
• Kospi decreased 22.28 points or -0.86% to 2,582.63
• SENSEX increased 195.45 points or 0.31% to 63,523.15
• Nifty50 increased 40.15 points or 0.21% to 18,856.85

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.00101 or 0.15% to 0.67931
• NZDUSD increased 0.00347 or 0.56% to 0.62017
• USDJPY increased 0.459 or 0.32% to 141.899
• USDCNY decreased 0.00374 or -0.05% to 7.17756

Precious Metals:

• Gold decreased 2.09 USD/t oz. or -0.11% to 1,933.82
• Silver decreased 0.409 USD/t. oz or -1.76% to 22.777

Some economic news from last night:

Australia:

MI Leading Index (MoM) (May) remain the same at 0.0%

No economic news from today:

EUROPE/EMEA:

The major Europe stock markets had a negative day today:

• CAC 40 decreased 33.20 points or -0.46% to 7,260.97
• FTSE 100 decreased 10.13 points or -0.13% to 7,559.18
• DAX 30 decreased 88.19 points or -0.55% to 16,023.13

The major Europe currency markets had a mixed day today:

• EURUSD increased 0.00587 or 0.54% to 1.09747
• GBPUSD increased 0.00025 or 0.02% to 1.27635
• USDCHF decreased 0.00426 or -0.47% to 0.89364

Some economic news from Europe today:

UK:

CPI (YoY) (May) remain the same at 8.7%

CPI (MoM) (May) decreased from 1.2% to 0.7%

PPI Input (MoM) (May) decreased from 0.1% to -1.5%

CBI Industrial Trends Orders (Jun) increased from -17 to -15

US/AMERICAS:

Federal Reserve Chairman Jerome Powell has affirmed that more interest rate increases are likely ahead as inflation is “well above” where it should be, and the process of getting inflation back down to 2% has a long way to go. Powell said the labor market is still tight, though there are signs that conditions are loosening. The Fed has pledged to leave interest rates near zero for years, through at least 2023, and will tolerate periods of higher inflation as they try to revive the labor market and economy. Powell has also indicated that the Fed may need more aggressive interest rate hikes to fight inflation. However, Powell has also said that stresses in the banking sector could mean that interest rates won’t have to be as high to control inflation. The Federal Reserve kept its key interest rate unchanged on June 14th after having raised it 10 straight times to combat high inflation, but signaled that it may raise rates twice more this year, beginning as soon as next month.

US Market Closings:

• Dow declined by 102.35 points or -0.3% to 33,951.52
• S&P 500 declined by 23.02 points or -0.52% to 4,365.69
• Nasdaq declined by 165.1 points or -1.21% to 13,502.2
• Russell 2000 declined declined by 3.68 points or -0.2% to 1,863.01

Canada Market Closings:

• TSX Composite declined by 48.19 points or -0.24% to 19,705.95
• TSX 60 declined by 2.67 points or -0.22% to 1,185.79

Brazil Market Closing:

• Bovespa advanced by 798.35 points or 0.67% to 120,420.75

ENERGY:

The oil markets had a green day today:

• Crude Oil increased 1.192 USD/BBL or 1.67% to 72.382
• Brent increased 1.29 USD/BBL or 1.70% to 77.190
• Natural gas increased 0.0819 USD/MMBtu or 3.29% to 2.5739
• Gasoline increased 0.0082 USD/GAL or 0.31% to 2.6174
• Heating oil increased 0.0869 USD/GAL or 3.51% to 2.5623

The above data was collected around 13:38 EST on Wednesday

• Top commodity gainers: Heating Oil (3.51%), Natural Gas (3.29%), Wheat (4.93%) and Corn (2.89%)
• Top commodity losers: Palladium (-2.55%), Rhodium (-3.28%), Palm Oil (-3.03%) and Orange Juice (-3.74%)

The above data was collected around 13:47 EST Wednesday.

BONDS:

Japan 0.376% (-1.1bp), US 2’s 4.70% (+0.007%), US 10’s 3.7363% (+0.93bps); US 30’s 3.82% (+0.003%), Bunds 2.407% (+0.1bp), France 2.945% (+1.8bp), Italy 4.033% (+0.5bp), Turkey 16.44% (-30bp), Greece 3.688% (-3.3bp), Portugal 3.121% (+3.4bp); Spain 3.345% (+0.1bp) and UK Gilts 4.40% (+6.4bp).

The post Market Talk – June 21, 2023 first appeared on Armstrong Economics.