Market Talk – July 11, 2023

ASIA:

Walt Disney is considering various strategic options for its Star India business, such as a joint venture or a sale, according to sources familiar with the matter. The company has engaged in discussions with at least one bank to explore opportunities for growth and cost-sharing for the India business. However, the talks are in the early stages, and it is uncertain which options, if any, Disney will ultimately pursue.

The major Asian stock markets had a green day today:

• NIKKEI 225 increased 13.84 points or 0.04% to 32,203.57
• Shanghai increased 17.67 points or 0.55% to 3,221.37
• Hang Seng increased 180.11 points or 0.97% to 18,659.83
• ASX 200 increased 104.90 points or 1.50% to 7,108.90
• Kospi increased 41.79 points or 1.66% to 2,562.49
• SENSEX increased 273.67 points or 0.42% to 65,617.84
• Nifty50 increased 83.50 points or 0.43% to 19,439.40

The major Asian currency markets had a negative day today:

• AUDUSD decreased 0.00098 or -0.15% to 0.66652
• NZDUSD decreased 0.00269 or -0.43% to 0.61821
• USDJPY decreased 0.806 or -0.57% to 140.504
• USDCNY decreased 0.00861 or -0.12% to 7.21969

Precious Metals:

• Gold increased 6.23 USD/t oz. or 0.32% to 1,931.22
• Silver decreased 0.065 USD/t. oz or -0.28% to 23.050

Some economic news from last night:

Australia:

NAB Business Confidence (Jun) increased from -3 to 0

Some economic news from today:

China:

New Loans (Jun) increased from 1,360.0B to 3,050.0B

EUROPE/EMEA:

Russia is set to commence testing a digital version of its national currency, the rouble, with consumers starting from August. The country has been actively working on developing digital currency in order to modernize its financial system and counter the rise of cryptocurrencies such as bitcoin. The central bank of Russia has confirmed these plans, highlighting the country’s efforts to keep pace with global digital currency trends.

The major Europe stock markets had a green day today:

• CAC 40 increased 76.32 points or 1.07% to 7,220.01
• FTSE 100 increased 8.73 points or 0.12% to 7,282.52
• DAX 30 increased 117.18 points or 0.75% to 15,790.34

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.00053 or -0.05% to 1.09937
• GBPUSD increased 0.00423 or 0.33% to 1.29013
• USDCHF decreased 0.00468 or -0.53% to 0.88052

Some economic news from Europe today:

UK:

Average Earnings Index +Bonus (May) increased from 6.7% to 6.9%

Claimant Count Change (Jun) increased from -22.5K to 25.7

Employment Change 3M/3M (MoM) (May) decreased from 250K to 102K

Unemployment Rate (May) increased from 3.8% to 4.0%

Germany:

German CPI (MoM) (Jun) increased from -0.1% to 0.3%

German CPI (YoY) (Jun) increased from 6.1% to 6.4%

German ZEW Current Conditions (Jul) decreased from -56.5 to -59.5

German ZEW Economic Sentiment (Jul) decreased from -8.5 to -14.7

Euro Zone:

ZEW Economic Sentiment (Jul) decreased from -10.0 to -12.2

US/AMERICAS:

The markets are awaiting tomorrow’s consumer price index report (CPI) for June, which will reveal if current policies have done anything to tame inflation. The markets are pricing in another 25 bp hike for the next Federal Open Market Committee (FOMC) meeting scheduled for July 25-26. The strong jobs report released last week has many wondering what the FOMC will do at their September meeting as the Fed is looking for the labor market to ease.

US Market Closings:

• Dow advanced 317.02 points or 0.93% to 34,261.42
• S&P 500 advanced 29.73 points or 0.67% to 4,439.26
• Nasdaq advanced 75.22 points or 0.55% to 13,760.7
• Russell 2000 advanced 18.11 points or 0.96% to 1,913.36

Canada Market Closings:

• TSX Composite advanced 56.11 points or 0.28% to 19,878.56
• TSX 60 advanced 2.98 points or 0.25% to 1,192.75

Brazil Market Closing:

• Bovespa declined 722.49 points or -0.61% to 117,219.95

ENERGY:

The oil markets had a green day today:

• Crude Oil increased 1.81 USD/BBL or 2.48% to 74.800
• Brent increased 1.647 USD/BBL or 2.12% to 79.337
• Natural gas increased 0.066 USD/MMBtu or 2.47% to 2.7350
• Gasoline increased 0.0431 USD/GAL or 1.68% to 2.6127
• Heating oil increased 0.0375 USD/GAL or 1.47% to 2.5907

The above data was collected around 12:40 EST on Tuesday

• Top commodity gainers: Methanol (2.98%), Orange Juice (3.04%), Canola (7.93%) and HRC Steel (3.01%)
• Top commodity losers: Coffee (-3.45%), Lumber (-1.35%), Palm Oil (-0.79%) and Copper (-0.65%)

The above data was collected around 12:47 EST Tuesday.

BONDS:

Japan 0.455% (-1.2bp), US 2’s 4.87% (+0.013%), US 10’s 3.966% (-4bps); US 30’s 4.00% (-0.039%), Bunds 2.638% (+0.6bp), France 3.200% (-0.3bp), Italy 4.408% (+1.9bp), Turkey 16.35% (+13bp), Greece 4.096% (+2.1bp), Portugal 3.417% (+3.9bp); Spain 3.703% (+0.6bp) and UK Gilts 4.648% (+0.8bp).