Market Talk – February 13, 2024

ASIA:

India’s industrial output, grew at a faster-than-expected rate of 3.8% year-on-year in December, exceeding economists’ predictions of 2.4%. This growth was primarily driven by a boost in manufacturing activity, with manufacturing output increasing by 3.9% compared to the previous year. However, electricity generation and mining activities showed slower growth rates in December compared to the same month the previous year. Despite variations in specific sectors, overall industrial output for the first nine months of the fiscal year starting in April increased by 6.1% compared to the same period the previous year.

The major Asian stock markets had a mixed day today:

• NIKKEI 225 increased 1,066.55 points or 2.89% to 37,963.97
• Shanghai closed
• Hang Seng closed
• ASX 200 decreased 11.30 points or -0.15% to 7,603.60
• Kospi increased 29.32 points or 1.12% to 2,649.64
• SENSEX increased 482.70 points or 0.68% to 71,555.19
• Nifty50 increased 127.20 points or 0.59% to 21,743.25

The major Asian currency markets had a mixed day today:

• AUDUSD decreased 0.00739 or -1.13% to 0.64551
• NZDUSD decreased 0.00746 or -1.22% to 0.60564
• USDJPY increased 1.424 or 0.95% to 150.764
• USDCNY increased 0.01568 or 0.22% to 7.22948

The above data was collected around 12:33 EST.

Precious Metals:

• Gold decreased 25.97 USD/t oz. or -1.29% to 1,993.82
• Silver decreased 0.587 USD/t. oz or -2.59% to 22.104

The above data was collected around 12:37 EST.

EUROPE/EMEA:

Austria, facing ongoing challenges with high Russian gas imports amid the Ukraine war, is considering more drastic measures, including terminating energy company OMV’s long-term contract with Gazprom, according to the country’s energy minister. Austria, traditionally close to Russia, has been working to reduce its reliance on Russian gas since the 2022 invasion of Ukraine. Despite political statements about Moscow’s unreliability, the partly state-owned OMV has affirmed its commitment to continuing gas purchases from Gazprom under an existing contract extending until 2040.

The major Europe stock markets had a negative day today:

• CAC 40 decreased 64.49 points or -0.84% to 7,625.31
• FTSE 100 decreased 61.41 points or -0.81% to 7,512.28
• DAX 30 decreased 156.52 points or -0.92% to 16.880.83

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.00535 or -0.50% to 1.07175
• GBPUSD decreased 0.00229 or -0.18% to 1.26031
• USDCHF increased 0.01166 or 1.33% to 0.88726

The above data was collected around 12:42 EST.

US/AMERICAS:

In January 2024, the US inflation rate slowed from 3.4% to 3.1% on a 12-month basis, as reported by the Bureau of Labor Statistics this Tuesday. Core inflation, which excludes food and energy prices, also decreased to 3.9% over the same period. While this slowdown was a positive sign for the Federal Reserve, it was still above expectations and the central bank’s 2% target. The report attributed the slowdown to factors such as a decrease in the price of used cars and gas prices, but highlighted that food prices, particularly at restaurants, rose, contributing to the overall inflation rate. The housing market and healthcare services were also significant contributors to the high inflation. Despite the slowdown, the data indicated that inflation is very much a concern.

US Market Closings:

• Dow declined 524.63 points or -1.35% to 38,272.75
• S&P 500 declined 68.67 points or -1.37% to 4,953.17
• Nasdaq declined 286.95 points or -1.8% to 15,655.6
• Russell 2000 declined 81.08 points or -3.96% to 1,964.18

Canada Market Closings:

• TSX Composite declined 482.33 points or -2.29% to 20,584.97
• TSX 60 declined 29.55 points or -2.32% to 1,242.1

Brazil Market Closing:

• Bovespa declined 191.22 points or -0.15% to 128,025.7

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 1.374 USD/BBL or 1.79% to 78.294
• Brent increased 1.162 USD/BBL or 1.42% to 83.162
• Natural gas decreased 0.1037 USD/MMBtu or -5.87% to 1.6643
• Gasoline increased 0.0419 USD/GAL or 1.77% to 2.4092
• Heating oil increased 0.0017 USD/GAL or 0.06% to 2.9213

The above data was collected around 12:45 EST.

• Top commodity gainers: Crude Oil (1.79%), Gasoline (1.77%), Cotton (1.50%) and Cocoa (2.32%)
• Top commodity losers: Platinum (-2.02%), Natural Gas (-5.87%), Silver (-2.59%) and Palladium (-3.89%)

The above data was collected around 12:56 EST.

BONDS:

Japan 0.725% (+0bp), US 2’s 4.62% (+0.150%), US 10’s 4.2848% (+11.48bps); US 30’s 4.45% (+0.076%), Bunds 2.392% (+2.6bp), France 2.890% (+2.6bp), Italy 3.943% (+3.1bp), Turkey 24.04% (+19bp), Greece 3.421% (+1.3bp), Portugal 3.104% (+2.2bp); Spain 3.349% (+2.6bp) and UK Gilts 4.153% (+9.6p)

The above data was collected around 13:12 EST.