Market Talk – August 11, 2023

ASIA:

The major Asian stock markets had a negative day today:

• NIKKEI 225 closed
• Shanghai decreased 65.31 points or -2.01% to 3,189.25
• Hang Seng decreased 173.07 points or -0.90% to 19,075.19
• ASX 200 decreased 17.30 points or -0.24% to 7,340.10
• Kospi decreased 10.30 points or -0.40% to 2,591.26
• SENSEX decreased 363.53 points or -0.56% to 65,322.65
• Nifty50 decreased 114.80 points or -0.59% to 19,428.30

The major Asian currency markets had a mixed day today:

• AUDUSD decreased 0.00131 or -0.20% to 0.64999
• NZDUSD decreased 0.00329 or -0.55% to 0.59881
• USDJPY increased 0.13 or 0.09% to 144.860
• USDCNY increased 0.01469 or 0.20% to 7.25639

Precious Metals:

• Gold increased 2.11 USD/t oz. or 0.11% to 1,914.17
• Silver decreased 0.014 USD/t. oz or -0.06% to 22.666

Some economic news from last night:

New Zealand:

Business NZ PMI (Jul) decreased from 47.5 to 46.3

Some economic news from today:

China:

New Loans (Jul) decreased from 3,050.0B to 345.9B

EUROPE/EMEA:

The major Europe stock markets had a negative day today:

• CAC 40 decreased 93.43 points or -1.26% to 7,340.19
• FTSE 100 decreased 94.44 points or -1.24% to 7,524.16
• DAX 30 decreased 164.35 points or -1.03% to 15,832.17

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.00204 or -0.19% to 1.09586
• GBPUSD increased 0.00227 or 0.18% to 1.26977
• USDCHF decreased 0.00004 or 0.00% to 0.87656

Some economic news from Europe today:

UK:

Business Investment (QoQ) (Q2) increased from 3.3% to 3.4%

GDP (QoQ) (Q2) increased from 0.1% to 0.2%

GDP (YoY) (Q2) increased from 0.2% to 0.4%

GDP (MoM) (Jun) increased from -0.1% to 0.5%

Industrial Production (MoM) (Jun) increased from -0.6% to 1.8%

Manufacturing Production (MoM) (Jun) increased from -0.1% to 2.4%

Monthly GDP 3M/3M Change (Jun) increased from 0.1% to 0.2%

Trade Balance (Jun) increased from -18.41B to -15.46B

Trade Balance Non-EU (Jun) increased from -6.62B to -2.77B

France:

French CPI (MoM) (Jul) decreased from 0.2% to 0.1%

French HICP (MoM) (Jul) decreased from 0.2% to 0.0%

Spain：

Spanish CPI (YoY) (Jul) increased from 1.9% to 2.3%

Spanish HICP (YoY) (Jul) increased from 1.6% to 2.1%

US/AMERICAS:

US President Joe Biden referred to China as a “ticking time bomb” due to its economic challenges and weak growth. Biden’s comments were reminiscent of his remarks in June when he referred to President Xi Jinping as a “dictator.” China called the remarks a provocation. The United States has fought high inflation and seen a robust labor market, while China’s economy has struggled. Biden signed an executive order on Wednesday that will prohibit some new US investment in China in sensitive technologies like computer chips. China expressed grave concern over the order. Biden’s comments come amid ongoing tensions between the US and China over economic policy.

US Market Closings:

• Dow advanced 105.25 points or 0.3% to 35,281.4
• S&P 500 declined 4.78 points or -0.11% to 4,464.05
• Nasdaq declined 76.18 points or -0.56% to 13,644.85
• Russell 2000 advanced 2.49 points or 0.13% to 1,925.11

Canada Market Closings:

• TSX Composite advanced 64.76 points or 0.32% to 20,407.64
• TSX 60 advanced 3.18 points or 0.26% to 1,223.54

Brazil Market Closing:

• Bovespa declined 284.46 points or -0.24% to 118,065.14

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 0.938 USD/BBL or 1.13% to 83.758
• Brent increased 0.887 USD/BBL or 1.03% to 87.287
• Natural gas increased 0 USD/MMBtu or 0.00% to 2.7630
• Gasoline increased 0.0643 USD/GAL or 2.21% to 2.9690
• Heating oil decreased 0.0026 USD/GAL or -0.08% to 3.1507

The above data was collected around 12:40 EST on Friday

• Top commodity gainers: Platinum Gasoline (2.21%), Cotton (3.29%), Sugar (1.54%) and Cheese (1.82%)
• Top commodity losers: Bitumen (-1.69%), Aluminum (-1.29%), Zinc (-2.22%) and Soybeans (-2.69%)

The above data was collected around 12:50 EST Friday.

BONDS:

Japan 0.589% (+1.7bp), US 2’s 4.90% (+0.076%), US 10’s 4.1581% (+7.61bps); US 30’s 4.27% (+0.029%), Bunds 2.624% (+12.1bp), France 3.158% (+9.4bp), Italy 4.252% (+9.9bp), Turkey 17.66% (-15bp), Greece 3.926% (+11.3bp), Portugal 3.343% (+7.6bp); Spain 3.638% (+8.9bp) and UK Gilts 4.532% (+16.6bp).