Market Talk – August 3, 2023

ASIA:

The major Asian stock markets had a mixed day today:

• NIKKEI 225 decreased 548.41 points or -1.68% to 32,159.28
• Shanghai increased 18.77 points or 0.58% to 3,280.46
• Hang Seng decreased 96.51 points or -0.49% to 19,420.87
• ASX 200 decreased 42.90 points or -0.58% to 7,311.70
• Kospi decreased 11.08 points or -0.42% to 2,605.39
• SENSEX decreased 542.10 points or -0.82% to 65,240.68
• Nifty50 decreased 144.90 points or -0.74% to 19,381.65

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.00224 or 0.34% to 0.65604
• NZDUSD increased 0.00082 or 0.13% to 0.60862
• USDJPY decreased 0.716 or -0.50% to 142.604
• USDCNY decreased 0.0271 or -0.38% to 7.17620

Precious Metals:

• Gold increased 1.08 USD/t oz. or 0.06% to 1,934.64
• Silver decreased 0.127 USD/t. oz or -0.53% to 23.614

Some economic news from last night:

China:

Caixin Services PMI (Jul) increased from 53.9 to 54.1

Japan:

au Jibun Bank Japan Services PMI (Jul) decreased from 54.0 to 53.8

Australia:

Trade Balance (Jun) increased from 10.497B to 11.321B

No economic news from today:

EUROPE/EMEA:

The major Europe stock markets had a negative day today:

• CAC 40 decreased 52.31 points or -0.72% to 7,260.53
• FTSE 100 decreased 32.47 points or -0.43% to 7,529.16
• DAX 30 decreased 126.64 points or -0.79% to 15,893.38

The major Europe currency markets had a mixed day today:

• EURUSD increased 0.00138 or 0.13% to 1.09498
• GBPUSD increased 0.00053 or 0.04% to 1.27143
• USDCHF decreased 0.00321 or -0.37% to 0.87439

Some economic news from Europe today:

Germany:

German Trade Balance (Jun) increased from 14.6B to 18.7B

HCOB Germany Services PMI (Jul) decreased from 54.1 to 52.3

Swiss:

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

Spain:

HCOB Spain Services PMI (Jul) decreased from 53.4 to 52.8

Italy:

HCOB Italy Services PMI (Jul) decreased from 52.2 to 51.5

France:

HCOB France Services PMI (Jul) decreased from 48.0 to 47.1

UK:

S&P Global/CIPS UK Composite PMI (Jul) decreased from 52.8 to 50.8

S&P Global/CIPS UK Services PMI (Jul) decreased from 53.7 to 51.5

BoE Interest Rate Decision (Aug) increased from 5.00% to 5.25%

Euro Zone:

S&P Global Composite PMI (Jul) decreased from 49.9 to 48.6

HCOB Eurozone Services PMI (Jul) decreased from 52.0 to 50.9

US/AMERICAS:

The markets are still reacting to Fitch downgrading US debt from AAA to AA+. Senator Manchin reprimanded both Republicans and Democrats, calling the downgrade “a historic failure of leadership by both political parties and the Executive branch.” Fitch cited the failed debt ceiling negotiation and lack of governance as one reason for the downgrade. Manchin noted that September will be a crucial month as it marks the deadline to fund the federal government. “Every American will suffer if Washington politics get in the way of long-term solutions that address these challenges,” he warned.

US Market Closings:

• Dow declined 66.63 points or -0.19% to 35,215.89
• S&P 500 declined 11.5 points or -0.25% to 4,501.89
• Nasdaq declined 13.73 points or -0.1% to 13,959.72
• Russell 2000 declined 5.43 points or -0.28% to 1,961.4

Canada Market Closings:

• TSX Composite declined 97.47 points or -0.48% to 20,120.74
• TSX 60 declined 7.64 points or -0.63% to 1,204.27

Brazil Market Closing:

• Bovespa declined 272.95 points or -0.23% to 120,585.77

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 2.266 USD/BBL or 2.85% to 81.756
• Brent increased 2.073 USD/BBL or 2.49% to 85.273
• Natural gas increased 0.1105 USD/MMBtu or 4.46% to 2.5875
• Gasoline decreased 0.0012 USD/GAL or -0.04% to 2.7746
• Heating oil increased 0.0644 USD/GAL or 2.14% to 3.0687

The above data was collected around 13:32 EST on Thursday

• Top commodity gainers: Crude Oil (2.85%), Natural Gas (4.46%), Brent (2.49%) and Rapeseed (3.43%)
• Top commodity losers: HRC Steel (-1.94%), Palm Oil (-2.32%), Cheese (-2.31%) and Milk (-2.23%)

The above data was collected around 13:42 EST Thursday.

BONDS:

Japan 0.652% (+2.5bp), US 2’s 4.89% (+0.003%), US 10’s 4.1935% (+11.55bps); US 30’s 4.31% (+0.141%), Bunds 2.572% (+6.5bp), France 3.126% (+3.8bp), Italy 4.262% (+6.5bp), Turkey 17.95% (-7bp), Greece 3.862% (+6.1bp), Portugal 3.327% (+4.6bp); Spain 3.645% (+6bp) and UK Gilts 4.458% (+5.4bp).