Market Talk – July 12, 2023

ASIA:

The International Monetary Fund (IMF) has approved a $3 billion bailout program for Pakistan, which will last for nine months. This decision follows a staff level agreement reached between Pakistan and the IMF in the previous month. The financial support is crucial for Pakistan, which is facing economic challenges. Additionally, the United Arab Emirates has deposited $1 billion with Pakistan’s central bank to assist in boosting the country’s foreign exchange reserves. Pakistan’s Finance Minister, Ishaq Dar, made this announcement on Wednesday.

The major Asian stock markets had a mixed day today:

• NIKKEI 225 decreased 259.64 points or -0.81% to 31,943.93
• Shanghai decreased 25.23 points or -0.78% to 3,196.13
• Hang Seng increased 201.12 points or 1.08% to 18,860.95
• ASX 200 increased 26.80 points or 0.38% to 7,135.70
• Kospi increased 12.23 points or 0.48% to 2,574.72
• SENSEX decreased 223.94 points or -0.34% to 65,393.90
• Nifty50 decreased 55.10 points or -0.28% to 19,384.30

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.01010 or 1.50% to 0.67865
• NZDUSD increased 0.01040 or 1.67% to 0.62996
• USDJPY decreased 2.071 or -1.48% to 138.299
• USDCNY decreased 0.04830 or -0.67% to 7.16438

Precious Metals:

• Gold increased 25.70 USD/t oz. or 1.33% to 1,957.69
• Silver increased 0.989 USD/t. oz or 4.28% to 24.092

Some economic news from last night:

New Zealand:

RBNZ Interest Rate Decision remain the same at 5.50%

Some economic news from today:

India:

CPI (YoY) (Jun) increased from 4.31% to 4.81%

EUROPE/EMEA:

Inflation in Russia increased in June, according to data from the state statistics service. This comes ahead of an expected interest rate hike by the central bank, the first in over a year. The central bank had previously lowered rates to 7.5% but has become more hawkish recently due to inflationary pressure caused by a weaker rouble, labor shortages, and high lending. In June, annual inflation reached 3.25% compared to 2.51% the previous month. The consumer price index rose 0.37% on a monthly basis in June. The central bank aims to bring inflation back to its 4% target by 2024. Rising prices have affected living standards and savings of Russian households, who have faced economic crises over the past decade.

The major Europe stock markets had a green day today:

• CAC 40 increased 113.00 points or 1.57% to 7,333.01
• FTSE 100 increased 133.59 points or 1.83% to 7,416.11
• DAX 30 increased 232.66 points or 1.47% to 16,023.00

The major Europe currency markets had a mixed day today:

• EURUSD increased 0.01268 or 1.15% to 1.11328
• GBPUSD increased 0.00644 or 0.50% to 1.29964
• USDCHF decreased 0.01225 or -1.39% to 0.86705

Some economic news from Europe today:

Spain:

Spanish CPI (YoY) (Jun) decreased from 3.2% to 1.9%

Spanish HICP (YoY) (Jun) decreased from 2.9% to 1.6%

US/AMERICAS:

The June Consumer Price Index (CPI) report showed that the CPI for All Urban Consumers rose by 0.2% in June, following a 0.1% increase in May. The 12-month percentage change in the CPI was 3.4%, indicating that the increase in prices was driven by various factors, including higher costs for energy, shelter, and used cars. The CPI measures the average change over time in prices paid by urban consumers for a market basket of goods and services. The report provides insights into inflation trends and is closely monitored by policymakers and economists. The Bureau of Labor Statistics publishes the CPI for different population groups, including All Urban Consumers (CPI-U) and Urban Wage Earners and Clerical Workers (CPI-W).

US Market Closings:

• Dow advanced 86.01 points or 0.25% to 34,347.43
• S&P 500 advanced 32.9 points or 0.74% to 4,472.16
• Nasdaq advanced 158.26 points or 1.15% to 13,918.96
• Russell 2000 advanced 20.02 points or 1.05% to 1,933.38

Canada Market Closings:

• TSX Composite advanced 192.21 points or 0.97% to 20,070.77
• TSX 60 advanced 10.7 points or 0.9% to 1,203.45

Brazil Market Closing:

• Bovespa advanced 110.97 points or 0.09% to 117,666.49

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 0.612 USD/BBL or 0.82% to 75.442
• Brent increased 0.533 USD/BBL or 0.67% to 79.933
• Natural gas decreased 0.1071 USD/MMBtu or -3.92% to 2.6239
• Gasoline increased 0.0274 USD/GAL or 1.04% to 2.6501
• Heating oil increased 0.0088 USD/GAL or 0.34% to 2.5925

The above data was collected around 12:36 EST on Wednesday

• Top commodity gainers: Silver (4.28%), Aluminum (2.81%), Zinc (2.82%) and Rhodium (5.00%)
• Top commodity losers: Corn (-4.43%), Orange Juice (-10.51%), Rice (-10.15%) and Natural Gas (-3.92%)

The above data was collected around 12:45 EST Wednesday.

BONDS:

Japan 0.48% (+2.9bp), US 2’s 4.73% (-0.163%), US 10’s 3.8475% (-13.45bps); US 30’s 3.94% (-0.077%), Bunds 2.54% (-10.9bp), France 3.126% (-8.7bp), Italy 4.262% (-16.1bp), Turkey 16.63% (+28bp), Greece 3.935% (-15.5bp), Portugal 3.32% (-9.7bp); Spain 3.593% (-12.4bp) and UK Gilts 4.51% (-15.5bp).