Market Talk – September 1, 2023

ASIA:

The major Asian stock markets had a mixed day today:

• NIKKEI 225 increased 91.28 points or 0.28% to 32,710.62
• Shanghai increased 13.37 points or 0.43% to 3,133.25
• Hang Seng closed
• ASX 200 decreased 27.00 points or -0.37% to 7,278.30
• Kospi increased 7.44 points or 0.29% to 2,563.71
• SENSEX increased 555.75 points or 0.86% to 65,387.16
• Nifty50 increased 181.50 points or 0.94% to 19,435.30

The major Asian currency markets had a mixed day today:

• AUDUSD decreased 0.00348 or -0.54% to 0.64482
• NZDUSD decreased 0.00213 or -0.36% to 0.59427
• USDJPY increased 0.667 or 0.46% to 146.197
• USDCNY decreased 0.00974 or -0.13% to 7.26790

Precious Metals:

• Gold decreased 1.66 USD/t oz. or -0.09% to 1,938.08
• Silver decreased 0.215 USD/t. oz or -0.88% to 24.220

Some economic news from last night:

China:

Caixin Manufacturing PMI (Aug) increased from 49.2 to 51.0

Japan:

Capital Spending (YoY) (Q2) decreased from 11.0% to 4.5%

Australia：

Home Loans (MoM) increased from -3.0% to -2.3%

No economic news from today:

EUROPE/EMEA:

The major Europe stock markets had a mixed day today:

• CAC 40 decreased 19.93 points or -0.27% to 7,296.77
• FTSE 100 increased 25.41 points or 0.34% to 7,464.54
• DAX 30 decreased 106.74 points or -0.67% to 15,840.34

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.00606 or -0.56% to 1.07804
• GBPUSD decreased 0.00926 or -0.73% to 1.25804
• USDCHF increased 0.00317 or 0.36% to 0.88627

Some economic news from Europe today:

Swiss:

CPI (MoM) (Aug) increased from -0.1% to 0.2%

procure.ch PMI (Aug) increased from 38.5 to 39.9

Spain:

HCOB Spain Manufacturing PMI (Aug) decreased from 47.8 to 46.5

Italy:

HCOB Italy Manufacturing PMI (Aug) increased from 44.5 to 45.4

Germany:

HCOB Germany Manufacturing PMI (Aug) increased from 38.8 to 39.1

France:

HCOB France Manufacturing PMI (Aug) increased from 45.1 to 46.0

Euro Zone:

HCOB Eurozone Manufacturing PMI (Aug) increased from 42.7 to 43.5

UK:

S&P Global/CIPS UK Manufacturing PMI (Aug) decreased from 45.3 to 43.0

Nationwide HPI (YoY) decreased from -3.8% to -5.3%

Nationwide HPI (MoM) decreased from -0.3% to -0.8%

US/AMERICAS:

The US unemployment rate unexpectedly rose to 3.8% in August 2023, while payrolls increased by 187,000. Health care showed the biggest gain by sector, adding 71,000 jobs, followed by leisure and hospitality (40,000), social assistance (26,000), and construction (22,000). Transportation and warehousing lost 34,000 jobs, and information declined by 15,000. The previous months’ job counts were revised considerably lower, with the July estimate moving down by 30,000 to 157,000, and June being revised lower by 80,000 to 105,000. The unexpected increase in the jobless rate came as the rolls of the unemployed grew by 514,000, while the household count of those employed increased by 222,000.

US Market Closings:

• Dow advanced 116.1 points or 0.33% to 34,838.01
• S&P 500 advanced 8.11 points or 0.18% to 4,515.77
• Nasdaq declined 3.15 points or -0.02% to 14,031.82
• Russell 2000 advanced 21.15 points or 1.11% to 1,920.83

Canada Market Closings:

• TSX Composite advanced 252.74 points or 1.25% to 20,545.36
• TSX 60 advanced 15.6 points or 1.28% to 1,231.67

Brazil Market Closing:

• Bovespa advanced 2,151.15 points or 1.86% to 117,892.96

ENERGY:

The oil markets had a green day today:

• Crude Oil increased 1.604 USD/BBL or 1.92% to 85.234
• Brent increased 1.597 USD/BBL or 1.84% to 88.427
• Natural gas increased 0.0385 USD/MMBtu or 1.39% to 2.8065
• Gasoline increased 0.0247 USD/GAL or 0.96% to 2.5906
• Heating oil increased 0.0132 USD/GAL or 0.42% to 3.1263

The above data was collected around 12:47 EST on Friday

• Top commodity gainers: Crude Oil (1.92%), Cotton (2.32%), Zinc (2.47%) and Sugar (2.39%)
• Top commodity losers: HRC Steel (-1.55%), Cocoa (-1.60%), Oat (-1.45%) and Coffee (-1.50%)

The above data was collected around 12:52 EST Friday.

BONDS:

Japan 0.642% (-0.9bp), US 2’s 4.87% (+0.013%), US 10’s 4.1768% (+8.58bps); US 30’s 4.30% (+0.092%), Bunds 2.537% (+6.6bp), France 3.064% (+8.3bp), Italy 4.229% (+10.5bp), Turkey 18.45% (+0bp), Greece 3.892% (+9.8bp), Portugal 3.293% (+8.4bp); Spain 3.563% (+8.6bp) and UK Gilts 4.405% (+4.4bp)