Market Talk – September 6, 2023

ASIA:

China’s top economic planner is establishing a new department called the private economy development bureau, aimed at supporting private businesses and boosting economic growth. This bureau will monitor and analyze the private sector, as well as formulate policies to promote its expansion. This move is part of China’s recent efforts to restore confidence in private companies, attract foreign investment, and create a level playing field between private and state-owned enterprises. President Xi Jinping has also pledged to facilitate market access and international cooperation. In July, the government promised equal treatment for private and state-owned firms, signaling a commitment to supporting the private sector, and the National Development and Reform Commission issued a comprehensive plan to stimulate private investment in various sectors, including transportation, water conservation, and clean energy.

The major Asian stock markets had a mixed day today:

• NIKKEI 225 increased 204.26 points or 0.62% to 33,241.02
• Shanghai increased 3.71 points or 0.12% to 3,158.08
• Hang Seng decreased 6.93 points or -0.04% to 18,449.98
• ASX 200 decreased 57.20 points or -0.78% to 7,257.10
• Kospi decreased 18.84 points or -0.73% to 2,563.34
• SENSEX increased 100.26 points or 0.15% to 65,880.52
• Nifty50 increased 36.15 points or 0.18% to 19,611.05

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.00057 or 0.09% to 0.63827
• NZDUSD decreased 0.00092 or -0.16% to 0.58748
• USDJPY decreased 0.113 or -0.08% to 147.597
• USDCNY increased 0.01809 or 0.25% to 7.31999

The above data was collected around 11.52 am EST from on Wednesday.

Precious Metals:

• Gold decreased 8.88 USD/t oz. or -0.46% to 1,916.93
• Silver decreased 0.429 USD/t. oz or -1.82% to 23.102

The above data was collected around 12.01 pm EST from on Wednesday.

Some economic news from last night:

Australia：

GDP (YoY) (Q2) decreased from 2.4% to 2.1%

GDP (QoQ) (Q2) remain the same at 0.4%

No economic news from today:

EUROPE/EMEA:

The UK’s statistics office has requested early access to economic data following a recent surprise revision of its 2021 economic estimate. A senior official at the Office for National Statistics (ONS) asked for a review by the statistics regulator regarding how the ONS revised its economic data related to the pandemic. The revised data, released on Friday, showed that the UK’s economy had a stronger recovery from the pandemic at the end of 2021 than previously believed, surpassing other major European countries instead of lagging behind them.

The European Union’s financial services chief has suggested that a draft law for a digital euro should not be rushed before the European elections in June. Instead, it should be examined carefully and slowly by the new Commission. The draft law aims to create a digital euro that resembles cash and can be used offline, with the intention of safeguarding public funds. Typically, legislative activities slow down before European Parliament elections, and they pick up again after a new EU executive is appointed later in the year. The European Central Bank (ECB) is set to decide in October whether to proceed with the digital euro, which is intended to address a shortage of European payment service providers. Advocates, such as the non-profit group Positive Money Europe, see the digital euro as a vital tool for ensuring a “safe and accessible” form of public money.

The major Europe stock markets had a negative day today:

• CAC 40 decreased 60.63 points or -0.84% to 7,194.09
• FTSE 100 decreased 11.79 points or -0.16% to 7,426.14
• DAX 30 decreased 30.34 points or -0.19% to 15,741.37

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.00078 or -0.07% to 1.07122
• GBPUSD decreased 0.00653 or -0.52% to 1.24977
• USDCHF increased 0.00305 or 0.34% to 0.89245

The above data was collected around 12:03 PM EST from on Wednesday.

Some economic news from Europe today:

Germany:

German Factory Orders (MoM) (Jul) decreased from 7.6% to -11.7%

UK:

S&P Global / CIPS UK Construction PMI (Aug) decreased from 51.7 to 50.8

US/AMERICAS:

Fed’s Mary Daly Collins, a nonvoting member of the Federal Open Market Committee, said that policymakers can “proceed cautiously” on future rate hikes. Collins said that while there are promising developments, it is too early to take the recent improvements as evidence that inflation is on a sustained path back to 2%. The FOMC member noted that the Fed may be “near or even at the peak” for interest rates, but more increases could be needed depending on how the data shakes out from here. Collins also noted some good news on inflation, as the Fed’s preferred gauge rose just 0.2% in July while wage growth also seems to have slowed. Collins’ remarks align with sentiment from other key central bankers, who have also suggested that the Fed proceed cautiously on policy.

US Market Closings:

• Dow declined 198.78 points or -0.57% to 34,443.19
• S&P 500 declined 31.35 points or -0.7% to 4,465.48
• Nasdaq declined 148.48 points or -1.06% to 13,872.47
• Russell 2000 declined 6.17 points or -0.33% to 1,874.28

Canada Market Closings:

• TSX Composite declined 186.8 points or -0.92% to 20,226.96
• TSX 60 declined 11.47 points or -0.94% to 1,211.79

Brazil Market Closing:

• Bovespa declined 1,345.96 points or -1.15% to 115,985.34

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 0.643 USD/BBL or 0.74% to 87.333
• Brent increased 0.266 USD/BBL or 0.30% to 90.306
• Natural gas decreased 0.0469 USD/MMBtu or -1.82% to 2.5351
• Gasoline decreased 0.005 USD/GAL or -0.19% to 2.5760
• Heating oil decreased 0.0575 USD/GAL or -1.79% to 3.1621

The above data was collected around 12:07 PM EST from on Wednesday

• Top commodity gainers: HRC Steel (1.62%), Orange Juice (3.87%), Rubber (1.20%) and Wheat (1.54%)
• Top commodity losers: Platinum (-2.02%), Sugar (-1.95%), Natural Gas (-1.82%) and Silver (-1.82%)

The above data was collected around 12:16 pm EST from on Wednesday.

BONDS:

Japan 0.657% (+0.1bp), US 2’s 5.03% (+0.061%), US 10’s 4.2995% (+3.15bps); US 30’s 4.37% (-0.003%), Bunds 2.655% (+4.7bp), France 3.189% (+4.8bp), Italy 4.408% (+6.2bp), Turkey 18.45% (+0bp), Greece 4.037% (+10.6bp), Portugal 3.43% (+7.3bp); Spain 3.706% (+5bp) and UK Gilts 4.534% (+1bp)