Market Talk – August 28, 2023

ASIA:

The major Asian stock markets had a green day today:

• NIKKEI 225 increased 545.71 points or 1.73% to 32,169.99
• Shanghai increased 34.56 points or 1.13% to 3,098.64
• Hang Seng increased 174.36 points or 0.97% to 18,130.74
• ASX 200 increased 44.60 points or 0.63% to 7,159.80
• Kospi increased 24.27 points or 0.96% to 2,543.41
• SENSEX increased 110.09 points or 0.17% to 64,996.60
• Nifty50 increased 40.25 points or 0.21% to 19,306.05

The major Asian currency markets had a green day today:

• AUDUSD increased 0.00218 or 0.34% to 0.64218
• NZDUSD increased 0.00039 or 0.07% to 0.59079
• USDJPY increased 0.122 or 0.08% to 146.532
• USDCNY increased 0.00038 or 0.01% to 7.29275

Precious Metals:

• Gold increased 4.93 USD/t oz. or 0.26% to 1,919.46
• Silver decreased 0.003 USD/t. oz or -0.01% to 24.217

Some economic news from last night:

Australia:

Retail Sales (MoM) (Jul) increased from -0.8% to 0.5%

No economic news from today:

EUROPE/EMEA:

The Bank of England is expected to raise its Bank Rate by 0.25% to 5.50% on September 21, according to a recent prediction. Despite this, a notable group of economists surveyed by Reuters anticipate even higher rates this year. Unlike other major central banks that have paused or ceased rate hikes, the Bank of England continues to grapple with inflation control, having implemented 14 consecutive rate hikes. Although headline UK inflation decreased from 7.9% in June to 6.8% in July, it remains more than three times the BoE’s 2% target and one of the highest in Western Europe. Core inflation, a key gauge of price growth excluding energy and food costs, has also stayed relatively high. The most recent Reuters poll suggests that Bank Rate will likely peak at 5.50%, a slight decrease from the earlier prediction of 5.75% in July.

The major Europe stock markets had a green day today:

• CAC 40 increased 95.11 points or 1.32% to 7,324.71
• FTSE 100 closed
• DAX 30 increased 160.79 points or 1.03% to 15,792.61

The major Europe currency markets had a mixed day today:

• EURUSD increased 0.001 or 0.09% to 1.08100
• GBPUSD increased 0.00233 or 0.19% to 1.26003
• USDCHF decreased 0.00045 or -0.05% to 0.88405

US/AMERICAS:

The IRS has delayed the implementation of new rules governing certain 401(k) catch-up contributions, which are causing confusion and raising concerns among employers and plan providers. The SECURE 2.0 Act of 2022 makes far-ranging changes to the US employer-retirement plan system, including changes to catch-up contributions for higher-income earners to be made on a Roth basis. The delay is due to numerous employers, plan providers, and organizations requesting more time to modify systems to allow catch-up 401(k) contributions to be made on an after-tax basis. The delay could mean that there might not be any catch-up contributions for 2024, but the IRS has previously delayed retirement plan rule changes and provided penalty relief. Congress is aware of this and other drafting errors in SECURE 2.0, and lawmakers will likely make technical corrections.

US Market Closings:

• Dow advanced 213.14 points or 0.62% to 34,560.04
• S&P 500 advanced 27.58 points or 0.63% to 4,433.29
• Nasdaq advanced 114.49 points or 0.84% to 13,705.13
• Russell 2000 advanced 15.38 points or 0.83% to 1,869.01

Canada Market Closings:

• TSX Composite advanced 189.39 points or 0.95% to 20,025.14
• TSX 60 advanced 11.08 points or 0.93% to 1,198.39

Brazil Market Closing:

• Bovespa advanced 1,283.78 points or 1.11% to 117,120.98

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 0.41 USD/BBL or 0.51% to 80.240
• Brent decreased 0.019 USD/BBL or -0.02% to 84.461
• Natural gas increased 0.0572 USD/MMBtu or 2.25% to 2.5972
• Gasoline decreased 0.0795 USD/GAL or -2.76% to 2.7969
• Heating oil decreased 0.1036 USD/GAL or -3.13% to 3.2039

The above data was collected around 15:06 EST on Monday

• Top commodity gainers: Coal (6.09%), Soda Ash (12.81%), Rice (2.55%) and Sugar (3.22%)
• Top commodity losers: Heating Oil (-3.13%), Orange Juice (-1.42%), Gasoline (-2.76%) and Palm Oil (-1.31%)

The above data was collected around 15:19 EST Monday.

BONDS:

Japan 0.666% (+0.9bp), US 2’s 5.04% (-0.015%), US 10’s 4.2059% (-3.31bps); US 30’s 4.29% (-0.006%), Bunds 2.554% (-0.2bp), France 3.077% (-0.2bp), Italy 4.226% (-0.4bp), Turkey 18.68% (+3bp), Greece 3.891% (+1.2bp), Portugal 3.282% (-0.9bp); Spain 3.578% (+0.3bp) and UK Gilts 4.443% (-0.4bp)