Market Talk – August 24, 2023

ASIA:

Asia’s economic growth is predicted to surpass that of the US and Europe this year, driven by strong domestic demand. Morgan Stanley emphasizes that Asia, including countries like Japan, is expected to outperform due to factors like China’s rebound post-reopening and supportive fiscal and monetary policies. Notably, China, India, Indonesia, and Japan are displaying robust domestic demand. This outlook aligns with the International Monetary Fund’s perspective on the Asia Pacific region’s resilience despite global economic challenges. China’s housing demand is increasing after the removal of pandemic restrictions. The World Bank also anticipates higher growth in East Asian and Pacific economies, primarily due to a strong recovery in China.

The major Asian stock markets had a mixed day today:

• NIKKEI 225 increased 276.95 points or 0.87% to 32,287.21
• Shanghai increased 3.84 points or 0.12% to 3,082.24
• Hang Seng increased 366.25 points or 2.05% to 18,212.17
• ASX 200 increased 33.70 points or 0.47% to 7,182.10
• Kospi increased 32.18 points or 1.28% to 2,537.68
• SENSEX decreased 180.96 points or -0.28% to 65,252.34
• Nifty50 decreased 57.30 points or -0.29% to 19,386.70

The major Asian currency markets had a mixed day today:

• AUDUSD decreased 0.00495 or -0.76% to 0.64265
• NZDUSD decreased 0.00530 or -0.89% to 0.59257
• USDJPY increased 1.013 or 0.70% to 145.843
• USDCNY decreased 0.0049 or -0.07% to 7.28123

Precious Metals:

• Gold increased 3.25 USD/t oz. or 0.17% to 1,917.56
• Silver decreased 0.181 USD/t. oz or -0.74% to 24.142

No economic news from last night:

No economic news from today:

EUROPE/EMEA:

In August, European business activity contracted to its lowest level since November 2020. The flash composite purchasing managers’ index (PMI) for the euro zone dropped to 47.0 from July’s 48.6, falling short of economists’ expectations of 48.8. A reading above 50 indicates expansion, while below 50 signifies contraction. Excluding Covid pandemic months, this marks the lowest reading since April 2013. The service sector hit a 30-month low at 48.3, while manufacturing PMI improved slightly from 42.7 in July to 43.7 this month.

The major Europe stock markets had a mixed day today:

• CAC 40 decreased 32.16 points or -0.44% to 7,214.46
• FTSE 100 increased 13.10 points or 0.18% to 7,333.63
• DAX 30 decreased 106.92 points or -0.68% to 15,621.49

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.00373 or -0.34% to 1.08217
• GBPUSD decreased 0.01059 or -0.83% to 1.26201
• USDCHF increased 0.00577 or 0.66% to 0.88347

US/AMERICAS:

Last night was the first GOP primary debate, but the most discussed candidate was not present. Former President Donald Trump declined the invitation to debate other GOP candidates and instead appeared on Tucker Carlson for a private interview. Trump’s interview was posted to the internet minutes before Fox aired the official debate. Trump received more views on social media than the entire primary, receiving nearly 11 million views within the first four minutes of going live. This is yet another indication of who the American people want in the White House come November 2024.

US Market Closings:

• Dow declined 373.56 points or -1.08% to 34,099.42
• S&P 500 declined 59.7 points or -1.35% to 4,376.31
• Nasdaq declined 257.06 points or -1.87% to 13,463.97
• Russell 2000 declined 23.75 points or -1.27% to 1,846.28

Canada Market Closings:

• TSX Composite declined 103.96 points or -0.52% to 19,775.83
• TSX 60 declined 5.37 points or -0.45% to 1,184.05

Brazil Market Closing:

• Bovespa declined 1,108.99 points or -0.94% to 117,025.6

ENERGY:

The oil markets had a mixed day today:

• Crude Oil decreased 0.067 USD/BBL or -0.09% to 78.823
• Brent increased 0.013 USD/BBL or 0.02% to 83.222
• Natural gas increased 0.0428 USD/MMBtu or 1.71% to 2.5398
• Gasoline decreased 0.0102 USD/GAL or -0.37% to 2.7586
• Heating oil increased 0.0112 USD/GAL or 0.36% to 3.1403

The above data was collected around 13:37 EST on Thursday

• Top commodity gainers: Cheese (2.21%), Soda Ash (2.70%), Oat (8.19%) and Sugar (1.76%)
• Top commodity losers: Wheat (-1.42%), Orange Juice (-1.35%), Bitumen (-1.44%) and Palladium (-3.32%)

The above data was collected around 13:45 EST Thursday.

BONDS:

Japan 0.655% (-2.3bp), US 2’s 5.00% (+0.047%), US 10’s 4.2273% (+2.93bps); US 30’s 4.30% (+0.012%), Bunds 2.522% (+0.2bp), France 3.053% (+0.7bp), Italy 4.180% (+0.3bp), Turkey 19.08% (+64bp), Greece 3.847% (-2.4bp), Portugal 3.238% (+0.7bp); Spain 3.548% (+0.6bp) and UK Gilts 4.436% (-3.5bp)