Market Talk – July 31, 2023

ASIA:

The major Asian stock markets had a green day today:

• NIKKEI 225 increased 412.99 points or 1.26% to 33,172.22
• Shanghai increased 15.11 points or 0.46% to 3,291.04
• Hang Seng increased 162.38 points or 0.82% to 20,078.94
• ASX 200 increased 6.80 points or 0.09% to 7,410.40
• Kospi increased 24.26 points or 0.93% to 2,632.58
• SENSEX increased 367.47 points or 0.56% to 66,527.67
• Nifty50 increased 107.75 points or 0.55% to 19,753.80

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.00824 or 1.24% to 0.67314
• NZDUSD increased 0.00531 or 0.86% to 0.62181
• USDJPY increased 1.024 or 0.73% to 142.174
• USDCNY decreased 0.0083 or -0.12% to 7.14320

Precious Metals:

• Gold increased 11.33 USD/t oz. or 0.58% to 1,970.53
• Silver increased 0.479 USD/t. oz or 1.97% to 24.809

Some economic news from last night:

China:

Chinese Composite PMI (Jul) decreased from 52.5 to 51.1

Manufacturing PMI (Jul) increased from 49.0 to 49.3

Non-Manufacturing PMI (Jul) decreased from 53.2 to 51.5

Japan:

Industrial Production (MoM) (Jun) increased from -2.2% to 2.0%

Retail Sales (YoY) (Jun) increased from 5.8% to 5.9%

Australia:

Private Sector Credit (MoM) (Jun) decreased from 0.4% to 0.2%

New Zealand:

ANZ Business Confidence (Jul) increased from -18.0 to -13.1

Some economic news from today:

India:

Federal Fiscal Deficit (Jun) increased from 2,102.87B to 4,513.70B

EUROPE/EMEA:

The major Europe stock markets had a mixed day today:

• CAC 40 increased 21.31 points or 0.29% to 7,497.78
• FTSE 100 increased 5.14 points or 0.07% to 7,699.41
• DAX 30 decreased 22.92 points or -0.14% to 16,446.83

The major Europe currency markets had a mixed day today:

• EURUSD increased 0.00062 or 0.06% to 1.10212
• GBPUSD increased 0.00117 or 0.09% to 1.28617
• USDCHF decreased 0.00082 or -0.09% to 0.86898

Some economic news from Europe today:

Germany:

German Retail Sales (MoM) (Jun) decreased from 1.9% to -0.8%

Italy:

Italian CPI (MoM) (Jul) increased from 0.0% to 0.1%

Euro Zone:

Core CPI (YoY) remain the same at 5.5%

CPI (YoY) (Jul) decreased from 5.5% to 5.3%

CPI (MoM) decreased from 0.3% to -0.1%

GDP (YoY) (Q2) decreased from 1.1% to 0.6%

GDP (QoQ) (Q2) increased from 0.0% to 0.3%

US/AMERICAS:

Banks are expected to continue tightening lending standards for both businesses and consumers. The trend of banks becoming stingier with loans has been observed in the past, such as during the 2008 financial crisis, and has continued in recent years despite lower demand for loans. Banks are lowering credit limits and demanding higher minimum credit scores from consumers, according to a Federal Reserve survey. The banks cited uncertain economic outlook and a abridged lenience for risk as important reasons for tightening lending standards. The banks also cited weaker capital positions, less competition, and worries over increased regulatory burdens. The tightening of lending standards could raise the risk of a recession, according to a report by Bloomberg. However, consumer lending is expected to boost profits for big US banks, as businesses hold back.

US Market Closings:

• Dow advanced 100.24 points or 0.28% to 35,559.53
• S&P 500 advanced 6.73 points or 0.15% to 4,588.96
• Nasdaq advanced 29.37 points or 0.21% to 14,346.02
• Russell 2000 advanced 21.64 points or 1.09% to 2,003.18

Canada Market Closings:

• TSX Composite advanced 107.27 points or 0.52% to 20,626.64
• TSX 60 advanced 6.19 points or 0.5% to 1,237.17

Brazil Market Closing:

• Bovespa advanced 1,755.87 points or 1.46% to 121,942.98

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 0.971 USD/BBL or 1.20% to 81.550
• Brent increased 0.812 USD/BBL or 0.96% to 85.222
• Natural gas decreased 0.0079 USD/MMBtu or -0.30% to 2.6301
• Gasoline decreased 0.016 USD/GAL or -0.55% to 2.8716
• Heating oil increased 0.0254 USD/GAL or 0.86% to 2.9752

The above data was collected around 11:46 EST on Monday

• Top commodity gainers: Zinc (2.48%), Coffee (3.51%), Copper (2.24%) and Palladium (2.39%)
• Top commodity losers: Canola (-3.28%), Wheat (-5.39%), Palm Oil (-3.20%) and Corn (-3.62%)

The above data was collected around 11:51 EST Monday.

BONDS:

Japan 0.605% (+4.9bp), US 2’s 4.87% (-0.027%), US 10’s 3.9428% (-2.62bps); US 30’s 4.00% (-0.032%), Bunds 2.464% (+0.9bp), France 3.027% (-0.5bp), Italy 4.105% (-1.4bp), Turkey 18.41% (-31bp), Greece 3.767% (-4.5bp), Portugal 3.218% (+1.6bp); Spain 3.514% (+0.1bp) and UK Gilts 4.311% (-1.4bp).