Market Talk – January 18, 2024

ASIA:

The Bank of Japan is expected to maintain its ultra-loose monetary policy in the upcoming week. Governor Kazuo Ueda’s statements will be closely watched for hints on when the central bank plans to raise short-term interest rates from negative territory. Policymakers are inclined to wait a few more months to assess the broadening of wage increases and ensure sustainable inflation at the 2% target. Market expectations point towards a potential rate hike in March or April, but the BOJ may delay until its April 25-26 meeting, according to sources familiar with the central bank’s thinking.

The major Asian stock markets had a mixed day today:

• NIKKEI 225 decreased 11.58 points or -0.03% to 35,466.17
• Shanghai increased 12.17 points or 0.43% to 2,845.78
• Hang Seng increased 114.89 points or 0.75% to 15,391.79
• ASX 200 decreased 46.60 points or -0.63% to 7,346.50
• Kospi increased 4.14 points or 0.17% to 2,440.04
• SENSEX decreased 313.90 points or -0.44% to 71,186.86
• Nifty50 decreased 109.70 points or -0.51% to 21,462.25

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.00079 or 0.12% to 0.65579
• NZDUSD decreased 0.00157 or -0.26% to 0.61003
• USDJPY increased 0.047 or 0.03% to 148.197
• USDCNY decreased 0.00359 or -0.05% to 7.21781

The above data was collected around 12:03 EST.

Precious Metals:

• Gold increased 8.32 USD/t oz. or 0.41% to 2,014.04
• Silver increased 0.11 USD/t. oz or 0.49% to 22.637

The above data was collected around 12:08 EST.

EUROPE/EMEA:

Germany’s parliamentary budget committee has proposed a 2024 budget of 476.8 billion euros ($517.8 billion), ensuring compliance with the country’s self-imposed debt brake. The draft allows Germany, the top economy in Europe, to issue 39 billion euros in new debt, staying within the government’s limit. The proposal, agreed upon after months of negotiations, adheres to the debt brake enshrined in the German constitution, limiting the public deficit to 0.35% of GDP. In 2023, the government had suspended the cap on borrowing due to a Constitutional Court ruling blocking the repurposing of unused pandemic emergency funds. The 2024 budget is scheduled for approval by Germany’s lower house on Feb. 2.

The major Europe stock markets had a green day today:

• CAC 40 increased 82.66 points or 1.13% to 7,401.35
• FTSE 100 increased 12.80 points or 0.17% to 7,459.09
• DAX 30 increased 135.66 points or 0.83% to 16.567.35

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.00291 or -0.27% to 1.08519
• GBPUSD increased 0.00042 or 0.03% to 1.26762
• USDCHF increased 0.00471 or 0.55% to 0.86891

The above data was collected around 12:09 EST.

US/AMERICAS:

Apple surpassed Samsung in global smartphone shipments for the first time in 2023, according to the International Data Corporation (IDC). Apple’s iPhone made shipments of 234.6 million units, accounting for 20.1% of the global market, while Samsung closed the year with 226.6 million shipments and a 19.4% market share. This marked a significant shift in the smartphone market, with Apple taking the lead after 13 years of Samsung’s dominance. The overall global smartphone shipments declined by 3.2% year over year to 1.17 billion units in 2023, but the market is expected to recover in 2024.

US Market Closings:

• Dow advanced 201.94 points or 0.54% to 37,468.61
• S&P 500 advanced 41.73 points or 0.88% to 4,780.94
• Nasdaq advanced 200.03 points or 1.25% to 15,055.65
• Russell 2000 advanced 10.49 points or 0.55% to 1,923.65

Canada Market Closings:

• TSX Composite advanced 61.71 points or 0.3% to 20,756.73
• TSX 60 advanced 3.59 points or 0.29% to 1,252.79

Brazil Market Closing:

• Bovespa declined 993.51 points or -0.77% to 127,530.32

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 1.442 USD/BBL or 1.99% to 74.002
• Brent increased 1.393 USD/BBL or 1.79% to 79.273
• Natural gas decreased 0.1304 USD/MMBtu or -4.54% to 2.7396
• Gasoline increased 0.0429 USD/GAL or 2.01% to 2.1783
• Heating oil increased 0.0447 USD/GAL or 1.68% to 2.6983

The above data was collected around 12:11 EST.

• Top commodity gainers: Orange Juice (2.48%), Oat (4.09%), Sugar (2.37%) and Palladium (2.51%)
• Top commodity losers: Lean Hogs (-0.58%), Steel (-0.41%), Cheese (-0.63%) and Natural Gas (-4.54%)

The above data was collected around 12:18 EST.

BONDS:

Japan 0.653% (+4.2bp), US 2’s 4.37% (+0.011%), US 10’s 4.1497% (+4.57bps); US 30’s 4.38% (+0.068%), Bunds 2.328% (+5.5bp), France 2.859% (+4.3bp), Italy 3.941% (+2.2bp), Turkey 24.66% (-14bp), Greece 3.419% (+3.7bp), Portugal 3.0620% (+3.2bp); Spain 3.294% (+4.5bp) and UK Gilts 3.943% (-4.3bp)

The above data was collected around 12:21 EST.