Market Talk – September 5, 2023

ASIA:

The major Asian stock markets had a mixed day today:

• NIKKEI 225 increased 97.58 points or 0.30% to 33,036.76
• Shanghai decreased 22.69 points or -0.71% to 3,154.37
• Hang Seng decreased 387.25 points or -2.06% to 18,456.91
• ASX 200 decreased 4.50 points or -0.06% to 7,314.30
• Kospi decreased 2.37 points or -0.09% to 2,582.18
• SENSEX increased 152.12 points or 0.23% to 65,780.26
• Nifty50 increased 46.10 points or 0.24% to 19,574.90

The major Asian currency markets had a mixed day today:

• AUDUSD decreased 0.00749 or -1.16% to 0.63831
• NZDUSD decreased 0.00527 or -0.89% to 0.58843
• USDJPY increased 1.14 or 0.78% to 147.600
• USDCNY increased 0.02716 or 0.37% to 7.30439

Precious Metals:

• Gold decreased 11.16 USD/t oz. or -0.58% to 1,927.03
• Silver decreased 0.375 USD/t. oz or -1.56% to 23.595

Some economic news from last night:

China:

Caixin Services PMI (Aug) decreased from 54.1 to 51.8

Chinese Composite PMI decreased from 51.9 to 51.7

Japan:

Household Spending (YoY) (Jul) decreased from -4.2% to -5.0%

Household Spending (MoM) (Jul) decreased from 0.9% to -2.7%

au Jibun Bank Japan Services PMI (Aug) increased from 53.8 to 54.3

Australia：

Current Account (Q2) decreased from 12.5B to 7.7B

Some economic news from today:

Australia:

RBA Interest Rate Decision (Sep) remain the same at 4.10%

EUROPE/EMEA:

The major Europe stock markets had a negative day today:

• CAC 40 decreased 24.79 points or -0.34% to 7,254.72
• FTSE 100 decreased 14.83 points or -0.20% to 7,437.93
• DAX 30 decreased 53.14 points or -0.34% to 15,771.71

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.00656 or -0.61% to 1.07284
• GBPUSD decreased 0.0035 or -0.28% to 1.25860
• USDCHF increased 0.00465 or 0.53% to 0.88875

Some economic news from Europe today:

Spain:

HCOB Spain Services PMI (Aug) decreased from 52.8 to 49.3

Italy:

HCOB Italy Services PMI (Aug) decreased from 51.5 to 49.8

Germany:

HCOB Germany Services PMI (Aug) decreased from 52.3 to 47.3

France:

HCOB France Services PMI (Aug) decreased from 47.1 to 46.0

Euro Zone:

HCOB Eurozone Composite PMI (Aug) decreased from 48.6 to 46.7

HCOB Eurozone Services PMI (Aug) decreased from 50.9 to 47.9

UK:

S&P Global/CIPS UK Composite PMI (Aug) decreased from 50.8 to 48.6

S&P Global/CIPS UK Services PMI (Aug) decreased from 51.5 to 49.5

US/AMERICAS:

The US government will shut down at midnight on September 30 if Congress fails to pass spending legislation, with the House returning to work on September 12, leaving nearly three weeks to pass funding before the deadline. The White House and the leadership of the House and Senate support a stopgap measure to keep the government running, but far-right Republicans want to attach conditions that include a crackdown on undocumented immigration and a vote on an impeachment inquiry into President Joe Biden. The situation comes as the Federal Reserve is considering more interest rate hikes to combat inflation, which has been rising at a rapid pace.

US Market Closings:

• Dow declined 195.74 points or -0.56% to 34,641.97
• S&P 500 declined 18.94 points or -0.42% to 4,496.83
• Nasdaq declined 10.86 points or -0.08% to 14,020.95
• Russell 2000 declined 40.38 points or -2.1% to 1,880.45

Canada Market Closings:

• TSX Composite declined 131.6 points or -0.64% to 20,413.76
• TSX 60 declined 8.41 points or -0.68% to 1,223.26

Brazil Market Closing:

• Bovespa declined 445.32 points or -0.38% to 117,331.3

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 1.993 USD/BBL or 2.32% to 87.924
• Brent increased 1.817 USD/BBL or 2.04% to 90.817
• Natural gas decreased 0.055 USD/MMBtu or -2.08% to 2.5852
• Gasoline increased 0.0531 USD/GAL or 2.05% to 2.6455
• Heating oil increased 0.0881 USD/GAL or 2.80% to 3.2386

The above data was collected around 12:10 EST on Tuesday

• Top commodity gainers: Crude Oil (2.32%), Heating Oil (2.80%), Oat (16.46%) and Sugar (3.41%)
• Top commodity losers: HRC Steel (-2.44%), Rapeseed (-2.42%), Platinum (-2.61%) and Palm Oil (-2.13%)

The above data was collected around 12:21 EST Tuesday.

BONDS:

Japan 0.660% (+1.8bp), US 2’s 4.95% (+0.037%), US 10’s 4.2538% (+4.75bps); US 30’s 4.36% (+0.044%), Bunds 2.613% (+3.6bp), France 3.142% (+3.7bp), Italy 4.344% (+5.3bp), Turkey 18.45% (+0bp), Greece 3.95% (+0.9bp), Portugal 3.375% (+6.6bp); Spain 3.658% (+4.6bp) and UK Gilts 4.524% (+6bp)