Market Talk – November 29, 2023

ASIA:

China will likely unleash 2.28 trillion yuan ($319 billion) of next year’s special local bond quota by the end of December, state media reported, a sign Beijing is moving early to boost growth in 2024. Authorities are expected to distribute 60% of next year’s special local government bond quota to provinces ahead of time, according to the Securities Daily. The newspaper cited Feng Lin, a senior analyst with Golden Credit Rating, in its report, along with several key members.

The major Asian stock markets had mixed day today:

• NIKKEI 225 decreased 87.17 points or -0.26% to 33,321.22
• Shanghai decreased 16.87 points or -0.56% to 3,021.69
• Hang Seng decreased 360.70 points or -2.08% to 16,993.44
• ASX 200 increased 20.10 points or 0.29% to 7,035.30
• Kospi decreased 1.95 points or -0.08% to 2,519.81
• SENSEX increased 727.71 points or 1.10% to 66,901.91
• Nifty50 increased 206.90 points or 1.04% to 20,096.60

The major Asian currency markets had a mixed day today:

• AUDUSD decreased 0.00323 or -0.49% to 0.66157
• NZDUSD increased 0.00169 or 0.28% to 0.61529
• USDJPY decreased 0.191 or -0.13% to 147.289
• USDCNY increased 0.01213 or 0.17% to 7.14413

The above data was collected around 16:13 EST.

Precious Metals:

Gold increased 3.16 USD/t oz. or 0.15% to 2,044.05

Silver decreased 0.001 USD/t. oz or 0.00%% to 25.003

The above data was collected around 16:15 EST.

Some economic news from last night:

Australia:

Construction Work Done (QoQ) (Q3) increased from 0.4% to 1.3%

New Zealand:

RBNZ Interest Rate Decision remain the same at 5.5%

EUROPE/EMEA:

An influential committee of European Union lawmakers voted in favor of a bill to move the clearing of euro-denominated derivatives from London to the bloc after Brexit. The European Commission could impose mandatory volumes only after completing a cost-benefit analysis to assess the impact on the financial stability and international competitiveness of EU counterparties, the committee said. The European securities regulator ESMA would also have to become a direct supervisor of EU-based clearers.

The major Europe stock markets had a mixed day today:

•  CAC 40 increased 17.51 points or 0.24% to 7,267.64
•  FTSE 100 decreased 31.78 points, or -0.43% to 7,423.46
•  DAX 30 increased 173.78 points or 1.09% to 16,166.45

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.00161 or -0.15% to 1.09739
• GBPUSD increased 0.00034 or 0.03% to 1.26964
• USDCHF decreased 0.00437 or -0.50% to 0.87363

The above data was collected around 16:21 EST.

Some economic news from Europe today:

Germany:

German CPI (MoM) (Nov) decreased from 0.0% to -0.4%

German CPI (YoY) (Nov) decreased from 3.8% to 3.2%

Spain:

Spanish CPI (YoY) (Nov) decreased from 3.5% to 3.2%

Spanish HICP (YoY) (Nov) decreased from 3.5% to 3.2%

US/AMERICAS:

JPMorgan Chase CEO Jamie Dimon stated that if the US government ordered the bank to leave China, it would comply. Dimon emphasized the complexity of relations with China and the necessity to engage with China and the US government. This statement comes amid growing geopolitical tensions and concerns about China’s potential actions regarding Taiwan. Dimon’s recent comments contrast with his previous commitment to doing business in China, reflecting the evolving dynamics of US-China relations and their impact on multinational banking.

US Market Closings:

• Dow advanced 13.44 points or 0.04% to 35,430.42
• S&P 500 declined 4.31 points or -0.09% to 4,550.58
• Nasdaq declined 23.27 points or 0.16% to 14,258.49
• Russell 2000 advanced 11 points or 0.61% to 1,803.81

Canada Market Closings:

• TSX Composite advanced 79.43 points or 0.4% to 20,116.2
• TSX 60 advanced 5.37 points or 0.45% to 1,212.02

Brazil Market Closing:

• Bovespa declined 372.68 points or 0.29% to 126,165.64

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 1.189 USD/BBL or 1.56% to 77.599
• Brent increased 1.289 USD/BBL or 1.58% to 82.969
• Natural gas decreased 0.0486 USD/MMBtu or -1.71% to 2.7884
• Gasoline increased 0.0467 USD/GAL or 2.09% to 2.2767
• Heating oil decreased 0.0315 USD/GAL or -1.08% to 2.8755

The above data was collected around 16:24 EST.

•   Top commodity gainers: HRC Steel (6.19%), Wheat (2.44%), Tea (6.65%), and Nickel (4.39%)
•   Top commodity losers: Palladium (-2.63%), Lumber (-1.73%), Milk (-5.95%), and Natural Gas (-1.71%)

The above data was collected around 16:30 EST.

BONDS:

Japan 0.679%(-7.7bp), US 2’s 4.64% (-0.095%), US 10’s 4.2609%(-7.51bps); US 30’s 4.44% (-0.082%), Bunds 2.425% (-6.8bp), France 2.992% (-7.1bp), Italy 4.172% (-8.9bp), Turkey 25.64% (-67bp), Greece 3.643% (-12.8bp), Portugal 3.101% (-6bp), Spain 3.428% (-7.4bp) and UK Gilts 4.098% (-7.6bp).

The above data was collected around 16:33 EST.