Market Talk – October 27, 2023

ASIA:

Japan is expected to slip from the third to the fourth position in the world in terms of nominal gross domestic product (GDP) in US dollars, with Germany surpassing it this year, according to projections by the International Monetary Fund. This change is primarily attributed to the depreciation of the yen, which has weakened beyond ¥150 against the dollar for the second time in 2023. The decline in the yen’s value is driven by widening interest rate gaps between Japan and other markets, reducing its overseas spending power. Japanese government officials are cautious about intervening in the currency market to maintain stability and avoid market shocks.

The major Asian stock markets had green day today:

• NIKKEI 225 increased 389.91 points or 1.27% to 30,991.69
• Shanghai increased 29.49 points or 0.99% to 3,017.78
• Hang Seng increased 354.12 points or 2.08% to 17,398.73
• ASX 200 increased 14.60 points or 0.21% to 6,826.90
• Kospi increased 3.73 points or 0.16% to 2,302.81
• SENSEX increased 634.65 points or 1.01% to 63,782.80
• Nifty50 increased 190.00 points or 1.01% to 19,047.25

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.00209 or 0.33% to 0.63419
• NZDUSD decreased 0.00022 or -0.04% to 0.58168
• USDJPY decreased 0.699 or -0.46% to 149.681
• USDCNY increased 0.00689 or 0.09% to 7.33059

The above data was collected around 12:46 EST.

Precious Metals:

Gold decreased 3.29 USD/t oz. or -0.17% to 1,981.53

Silver decreased 0.146 USD/t. oz or -0.64%% to 22.684

The above data was collected around 12:49 EST.

No economic news from last night:

No economic news from today:

EUROPE/EMEA:

The Russian rouble surged to a six-week high against the US dollar following the Bank of Russia’s surprising decision to increase interest rates to 15%, exceeding analysts’ expectations of a 100-basis-point raise. The central bank’s move was driven by concerns about the weak rouble, persistent inflation, and rising budget spending. Additionally, the rouble was supported by increased foreign currency sales by exporters.

The major Europe stock markets had a negative day today:

•  CAC 40 decreased 93.58 points or -1.36% to 6,795.38
•  FTSE 100 decreased 63.29 points, or -0.86% to 7,291.28
•  DAX 30 decreased 43.64 points or -0.30% to 14,687.41

The major Europe currency markets had a green day today:

• EURUSD increased 0.00222 or 0.21% to 1.05822
• GBPUSD increased 0.00089 or 0.07% to 1.21349
• USDCHF increased 0.00437 or 0.49% to 0.90297

The above data was collected around 12:54 EST.  

US/AMERICAS:

Warren Buffett’s Berkshire Hathaway has increased its stake in Occidental Petroleum, according to a filing with the Securities and Exchange Commission. The company has upped its holdings from 25.1% to 25.8% of the oil producer, bringing its total to 228 million shares worth $14.5 billion. This latest purchase follows Berkshire Hathaway’s last purchase of Occidental in June, when it raised its stake to 224.1 million at just over $57 per share. While Berkshire Hathaway has regulatory approval to acquire as much as 50% of Occidental Petroleum, Buffett said at the company’s annual meeting this summer that he is not seeking to control the Texas-based energy company. In addition to Occidental Petroleum, Berkshire holds equity in a variety of companies, including longtime holdings such as American Express, Coca-Cola, and Chevron, and more recently homebuilders D.R. Horton and Lennar.

US Market Closings:

• Dow declined 366.71 points or -1.12% to 32,417.59
• S&P 500 declined 19.86 points or -0.48% to 4,117.37
• Nasdaq advanced 47.41 points or 0.38% to 12,643.01
• Russell 2000 declined 20.07 points or -1.21% to 1,636.94

Canada Market Closings:

• TSX Composite declined 137.92 points or -0.73% to 18,737.39
• TSX 60 declined 9.78 points or -0.86% to 1,124.58

Brazil Market Closing:

• Bovespa declined 1,475.51 points or -1.29% to 113,301.35

ENERGY:

The oil markets had a green day today:

• Crude Oil increased 1.349 USD/BBL or 1.62% to 84.559
• Brent increased 1.623 USD/BBL or 1.85% to 89.553
• Natural gas increased 0.0769 USD/MMBtu or 2.21% to 3.5539
• Gasoline increased 0.0395 USD/GAL or 1.75% to 2.2956
• Heating oil increased 0.002 USD/GAL or 0.07% to 3.0459

The above data was collected around 13:05 EST.

•   Top commodity gainers: Natural Gas (2.21%), HRC Steel (3.65%), Canola (2.55%), and Rhodium (2.33%)
•   Top commodity losers: Rapeseed (-0.92%), Wheat (-1.26%), Rubber (-0.89%), and Palladium (-1.60%)

The above data was collected around 13:12 EST.

BONDS:

Japan 0.881%(-0.5bp), US 2’s 5.03% (-0.008%), US 10’s 4.8791%(+3.41bps); US 30’s 5.05% (+0.059%), Bunds 2.836% (-1.5bp), France 3.458% (-2.2bp), Italy 4.806% (-4.4bp), Turkey 26.58% (+73bp), Greece 4.193% (+1.2bp), Portugal 3.547% (-2.2bp), Spain 3.935% (-2.5bp) and UK Gilts 4.562% (-4.1bp).              

The above data was collected around 13:16 EST.