Market Talk – September 9, 2023

ASIA:

Asia-Pacific markets experienced declines on Friday, with Japan’s Nikkei 225 falling 1.16% and erasing gains from the previous week, while the Topix was down 1.02% to close at 2,359.02. Japan’s second-quarter GDP growth was revised to 4.8%, lower than preliminary estimates of 6% and expectations of 5.5%. Hong Kong canceled trading for the day due to a “black rainstorm” warning, which occurred as the city faced its heaviest rainfall in 140 years. If the black rainstorm signal persists after 12 p.m., trading for the day is canceled according to Hong Kong Exchange guidelines.

The major Asian stock markets had a mixed day today:

• NIKKEI 225 decreased 384.24 points or -1.16% to 32,606.84
• Shanghai decreased 5.63 points or -0.18% to 3,116.72
• Hang Seng closed
• ASX 200 decreased 14.30 points or -0.20% to 7,156.70
• Kospi decreased 0.58 points or -0.02% to 2,547.68
• SENSEX increased 333.35 points or 0.50% to 66,598.91
• Nifty50 increased 92.90 points or 0.47% to 19,819.95

The major Asian currency markets had a green day today:

• AUDUSD increased 0.00086 or 0.13% to 0.63846
• NZDUSD increased 0.00186 or 0.32% to 0.58936
• USDJPY increased 0.421 or 0.29% to 147.711
• USDCNY increased 0.01876 or 0.26% to 7.36012

The above data was collected around 12:25 EST.

Precious Metals:

• Gold decreased 1.09 USD/t oz. or -0.06% to 1,918.10
• Silver decreased 0.059 USD/t. oz or -0.26% to 22.889

The above data was collected around 12:31 EST.

Some economic news from last night:

Japan:

Adjusted Current Account (Jul) increased from 234.59T to 276.69T

Current Account n.s.a. (Jul) increased from 1.509T to 2.772T

GDP (QoQ) (Q2) increased from 0.8% to 1.2%

GDP (YoY) (Q2) increased from 3.2% to 4.8%

No economic news from today:

EUROPE/EMEA:

Bank of America Global Research predicts that the European Central Bank (ECB) will raise all three policy rates by 25 basis points at its September 14 meeting due to a weaker growth outlook and the absence of clear evidence of a peak in core inflation. They anticipate the first rate cut by the ECB to occur in June 2024, followed by one rate cut per quarter in both 2024 and 2025. Additionally, a recent ECB survey indicates that consumer expectations for euro zone inflation in the coming years have increased, which raises concerns that the decline in price growth may not stay within the bank’s target range.

The major Europe stock markets had a green day today:

• CAC 40 increased 44.67 points or 0.62% to 7,240.77
• FTSE 100 increased 36.47 points or 0.49% to 7,478.19
• DAX 30 increased 21.64 points or 0.14% to 15,740.30

The major Europe currency markets had a mixed day today:

• EURUSD increased 0.00031 or 0.03% to 1.07021
• GBPUSD decreased 0.00106 or -0.08% to 1.24624
• USDCHF increased 0.00061 or 0.07% to 0.89331

The above data was collected around 12:37 EST.

Some economic news from Europe today:

Germany:

German CPI (MoM) (Aug) remain the same at 0.3%

German CPI (YoY) (Aug) decreased from 6.2% to 6.1%

US/AMERICAS:

According to recent reports, apartment rents in the US are on the verge of declining due to a massive new supply of apartments. Rents in August 2023 were just 0.28% higher than August 2022, according to RealPage. The number of new units being built is at a 50-year high, with more than 460,000 being completed this year alone. While rents nationally haven’t gone negative yet, they have in several local markets. Austin, Texas (-4.9%), Phoenix (-4.9%), Las Vegas (4.7%), Atlanta (-3.7%) and Jacksonville, Florida (-3.4%) are seeing the biggest drops. The Midwest and Northeast regions continue to see rent growth, but the pace of growth has slowed.

US Market Closings:

• Dow advanced 75.86 points or 0.22% to 34,576.59
• S&P 500 advanced 6.35 points or 0.14% to 4,457.49
• Nasdaq advanced 12.69 points or 0.09% to 13,761.53
• Russell 2000 declined 4.21 points or -0.23% to 1,851.54

Canada Market Closings:

• TSX Composite declined 57.43 points or -0.29% to 20,074.65
• TSX 60 dclined 3.49 points or -0.29% to 1,203.06

Brazil Market Closing:

• Bovespa declined 671.94 points or -0.58% to 115,313.4

ENERGY:

The oil markets had a green day today:

• Crude Oil increased 0.596 USD/BBL or 0.69% to 87.466
• Brent increased 0.635 USD/BBL or 0.71% to 90.555
• Natural gas increased 0.0179 USD/MMBtu or 0.69% to 2.5969
• Gasoline increased 0.0291 USD/GAL or 1.11% to 2.6521
• Heating oil increased 0.0898 USD/GAL or 2.80% to 3.3021

The above data was collected around 12:40 EST.

• Top commodity gainers: Heating Oil (2.80%), Gasoline (1.11%), Cotton (1.32%) and Cocoa (1.04%)
• Top commodity losers: Sugar (-1.80%), Methanol (-1.54%), Zinc (-2.48%) and Rapeseed (-1.87%)

The above data was collected around 12:50 EST.

BONDS:

Japan 0.658% (-0.2bp), US 2’s 4.97% (+0.017%), US 10’s 4.2601% (-0.19bps); US 30’s 4.34% (-0.011%), Bunds 2.613% (-0.5bp), France 3.148% (-0.1bp), Italy 4.348% (-0.7bp), Turkey 21.62% (+317bp), Greece 4.013% (+2.8bp), Portugal 3.34% (-2.4bp); Spain 3.649% (-0.6bp) and UK Gilts 4.422% (-2.9bp)

The above data was collected around 12:53 EST.