Market Talk – June 9, 2023

ASIA:

Inflation in China stayed at low levels in May, as the economy struggles to recover even after its strict Covid lockdown measures lifted late last year. Producer price index in May fell 4.6%, marking the steepest year-on-year drop in seven years, when producer prices saw a year-on-year drop of 7.2% in May 2016. The latest reading fell further from a decline of 3.6% in April and lower than expectations to see a decline of 4.3% in May, according to Reuters poll of economists. China’s consumer price index in May rose 0.2% compared to a year ago, government data showed. Economists surveyed by Reuters expected a 0.3% rise. CPI in April was at a two-year low of 0.1%. Month-on-month, prices fell 0.2% — economists predicted a 0.1% decline.

The major Asian stock markets had a mixed day today:

• NIKKEI 225 increased 623.90 points or 1.97% to 32,265.17
• Shanghai increased 17.82 points or 0.55% to 3,231.41
• Hang Seng increased 90.77 points or 0.47% to 19,389.95
• ASX 200 increased 22.80 points or 0.32% to 7,122.50
• Kospi increased 30.31 points or 1.16% to 2,641.16
• SENSEX decreased 223.01 points or -0.35% to 62,625.63
• Nifty50 decreased 71.15 points or -0.38% to 18,563.40

The major Asian currency markets had a green day today:

• AUDUSD increased 0.00243 or 0.36% to 0.67393
• NZDUSD increased 0.00331 or 0.54% to 0.61261
• USDJPY increased 0.502 or 0.36% to 139.412
• USDCNY increased 0.0247 or 0.35% to 7.14310

Precious Metals:

• Gold decreased 7.00 USD/t oz. or -0.36% to 1,960.76
• Silver increased 0.029 USD/t. oz or 0.12% to 24.270

Some economic news from last night:

China:

CPI (MoM) (May) decreased from -0.1% to -0.2%

CPI (YoY) (May) increased from 0.1% to 0.2%

PPI (YoY) (May) decreased from -3.6% to -4.6%

Some economic news from today:

India:

FX Reserves, USD increased from 589.14B to 595.07B

EUROPE/EMEA:

The Bank of England has announced the conclusion of its corporate bond sales program, having sold nearly all of the £20 billion ($24.8 billion) it purchased as part of its quantitative easing (QE) initiative. The program was initially implemented in 2016 to support the UK economy following the Brexit vote, and its holdings were doubled in 2020 to mitigate the effects of the COVID-19 pandemic on businesses. Sales commenced in September 2022, and last month, the Bank of England stated that they were likely to be completed within a few weeks. Following a final auction, the Bank of England revealed that it would retain £833 million of corporate bonds that are close to maturity, unless investors directly express interest in purchasing them.

The major Europe stock markets had a negative day today:

• CAC 40 decreased 9.01 points or -0.12% to 7,213.14
• FTSE 100 decreased 37.38 points or -0.49% to 7,562.36
• DAX 30 decreased 40.12 points or -0.25% to 15,949.84

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.00333 or -0.31% to 1.07477
• GBPUSD increased 0.00217 or 0.17% to 1.25747
• USDCHF increased 0.00515 or 0.57% to 0.90355

 US/AMERICAS:

The S&P 500 reached the 4300 threshold for the first time since August of last year. The index rose 0.4% for the week, marking the fourth consecutive week of gains and the longest period of gains since last August. The Nasdaq experienced its seventh consecutive week of gains, up 0.2% for the week, marking the longest winning streak since November 2019.

US Market Closings:

• Dow advanced 43.17 points or 0.13% to 33,876.78
• S&P 500 advanced 4.93 points or 0.11% to 4,298.86
• Nasdaq advanced 20.62 points or 0.16% to 13,259.14
• Russell 2000 declined 15.07 points or -0.8% to 1,865.71

Canada Market Closings:

• TSX Composite declined 50.64 points or -0.25% to 19,892.06
• TSX 60 declined 2.09 points or -0.17% to 1,196.03

Brazil Market Closing:

• Bovespa advanced 1,531.32 points or 1.33% to 117,019.48

ENERGY:

The oil markets had a negative day today:

• Crude Oil decreased 1.151 USD/BBL or -1.61% to 70.139
• Brent decreased 0.989 USD/BBL or -1.30% to 74.971
• Natural gas decreased 0.0868 USD/MMBtu or -3.69% to 2.2652
• Gasoline decreased 0.0166 USD/GAL or -0.64% to 2.5961
• Heating oil decreased 0.0279 USD/GAL or -1.17% to 2.3619

The above data was collected around 15:34 EST on Friday

• Top commodity gainers: Soybeans (1.71%), Palm Oil (3.16%), Rice (1.30%) and Rapeseed (1.52%)
• Top commodity losers: Palladium (-2.62%), Coffee (-2.16%), Lumber (-1.77%) and Natural Gas (-3.69%)

The above data was collected around 15:41 EST Friday.

BONDS:

Japan 0.432% (-0.5bp), US 2’s 4.60% (+0.085%), US 10’s 3.7433% (+2.93bps); US 30’s 3.88% (+0.0001%), Bunds 2.376% (-4.6bp), France 2.917% (-5.1bp), Italy 4.119% (-8.1bp), Turkey 15.55% (+74bp), Greece 3.658% (-5.5bp), Portugal 3.095% (-6.4bp); Spain 3.353% (-6.5bp) and UK Gilts 4.237% (+1bp).    

The post Market Talk – June 9, 2023 first appeared on Armstrong Economics.