Market Talk – February 7, 2024

ASIA:

India’s markets regulator, the Securities and Exchange Board of India (SEBI), has released a discussion paper proposing methods for offshore funds with expired India licenses to divest their securities. This marks the initial step before potential rule changes by SEBI to address the absence of a mechanism for offshore funds to liquidate holdings post-license expiration.

The major Asian stock markets had a mixed day today:

• NIKKEI 225 decreased 40.74 points or -0.11% to 36,119.92
• Shanghai increased 40.21 points or 1.44% to 2,829.70
• Hang Seng decreased 54.98 points or -0.34% to 16,081.89
• ASX 200 increased 34.20 points or 0.45% to 7,615.80
• Kospi increased 33.38 points or 1.30% to 2,609.58
• SENSEX decreased 34.09 points or -0.05% to 72,152.00
• Nifty50 increased 1.10 points or 0.01% to 21,930.50

The major Asian currency markets had a mixed day today:

• AUDUSD decreased 0.00024 or -0.04% to 0.65206
• NZDUSD increased 0.00100 or 0.16% to 0.61049
• USDJPY increased 0.117 or 0.08% to 148.057
• USDCNY increased 0.01042 or 0.14% to 7.21162

The above data was collected around 13:14 EST.

Precious Metals:

• Gold increased 0.52 USD/t oz. or 0.03% to 2,035.98
• Silver decreased 0.093 USD/t. oz or -0.41% to 22.308

The above data was collected around 13:19 EST.

EUROPE/EMEA:

German home prices are predicted to potentially drop by up to 30% below their 2022 peak, according to TAG Immobilize co-CEO Martin Thiel. This outlook is more pessimistic than that of other industry players, indicating ongoing risks to Germany’s largest economy. Thiel’s assessment follows a recent decline of approximately 10% in the country’s residential property market, marking its most significant downturn in a generation.

The major Europe stock markets had a negative day today:

• CAC 40 decreased 27.71 points or -0.36% to 7,611.26
• FTSE 100 decreased 52.26 points or -0.68% to 7,628.75
• DAX 30 decreased 111.28 points or -0.65% to 16.921.96

The major Europe currency markets had a green day today:

• EURUSD increased 0.00178 or 0.17% to 1.07718
• GBPUSD increased 0.00342 or 0.27% to 1.26312
• USDCHF increased 0.00455 or 0.52% to 0.87405

The above data was collected around 13:27 EST.

 US/AMERICAS:

Minneapolis Fed President Neel Kashkari has expressed caution about cutting interest rates too quickly, stating that two or three rate cuts would seem appropriate for the year. He emphasized the importance of assessing upcoming economic data before making any decisions on rate cuts. Kashkari’s comments reflect a sentiment that the Fed can take its time in considering and implementing interest rate cuts, as the current policy is not as restrictive on economic growth as it may appear. This cautious approach is influenced by the belief that the longer-run “neutral” rate is likely higher than before the Covid-19 pandemic, giving the Fed room to wait on rate cuts.

US Market Closings:

• Dow advanced 156 points or 0.4% to 38,677.36
• S&P 500 advanced 40.83 points or 0.82% to 4,995.06
• Nasdaq advanced 147.65 points or 0.95% to 15,756.64
• Russell 2000 declined 3.27 points or -0.17% to 1,950.36

Canada Market Closings:

• TSX Composite advanced 11.44 points or 0.05% to 20,969.18
• TSX 60 advanced 0.76 of a point or 06% to 1,264.59

Brazil Market Closing:

• Bovespa declined 458.47 points or -0.35% to 129,957.84

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 0.407 USD/BBL or 0.56% to 73.717
• Brent increased 0.507 USD/BBL or 0.64% to 79.097
• Natural gas decreased 0.035 USD/MMBtu or -1.74% to 1.9740
• Gasoline increased 0.0395 USD/GAL or 1.78% to 2.2568
• Heating oil increased 0.0605 USD/GAL or 2.21% to 2.8032

The above data was collected around 13:30 EST.

• Top commodity gainers: Heating Oil (2.21%), Methanol (2.16%), Orange Juice (2.63%) and Cocoa (3.93%)
• Top commodity losers: Rapeseed (-2.49%), Platinum (-2.62%), HRC Steel (-2.53%) and Palladium (-5.44%)

The above data was collected around 13:37 EST.

BONDS:

Japan 0.715% (-0.4bp), US 2’s 4.41% (+0.006%), US 10’s 4.1057% (+1.37bps); US 30’s 4.31% (+0.019%), Bunds 2.321% (+2.3bp), France 2.834% (+2.9bp), Italy 3.889% (+2.7bp), Turkey 24.27% (+25bp), Greece 3.358% (-3.6bp), Portugal 3.017% (+1.1bp); Spain 3.246% (+2.9bp) and UK Gilts 3.994% (+4.2p)

The above data was collected around 13:41 EST.