Market Talk – September 21, 2023

ASIA:

The Bank of Japan is expected to maintain extremely low interest rates and reassure markets about continued monetary stimulus, despite global economic concerns linked to China’s situation and U.S. interest rate developments. This policy contrasts with the U.S. and European central banks, which have raised rates to combat inflation. Despite Japan’s inflation exceeding its 2% target due to rising raw material costs, BOJ policymakers are discussing the need to move away from the massive stimulus of the past decade. In July, the BOJ took steps to allow long-term rates to rise more freely, signaling a gradual departure from previous radical stimulus measures under former Governor Haruhiko Kuroda.

The major Asian stock markets had a negative day today:

• NIKKEI 225 decreased 452.75 points or -1.37% to 32,571.03
• Shanghai decreased 23.87 points or -0.77% to 3,084.70
• Hang Seng decreased 230.19 points or -1.29% to 17,655.41
• ASX 200 decreased 98.10 points or -1.37% to 7,065.20
• Kospi decreased 44.77 points or -1.75% to 2,514.97
• SENSEX decreased 570.60 points or -0.85% to 66,230.24
• Nifty50 decreased 159.05 points or -0.80% to 19,742.35

The major Asian currency markets had a mixed day today:

• AUDUSD decreased 0.00256 or -0.40% to 0.64194
• NZDUSD increased 0.00031 or 0.05% to 0.59311
• USDJPY decreased 0.8 or -0.54% to 147.530
• USDCNY increased 0.0002 or 0.00% to 7.31178

The above data was collected around 12:34 EST

Precious Metals:

Gold decreased 10.76 USD/t oz. or -0.56% to 1,918.92

Silver increased 0.152 USD/t. oz or 0.65%% to 23.392

The above data was collected around 12.56 EST

Some economic news from last night:

New Zealand:

GDP (QoQ) (Q2) increased from 0.0% to 0.9%

No economic news from today:

EUROPE/EMEA:

The Bank of England decided to pause its series of interest rate hikes due to a slowdown in the British economy. Despite a recent drop in inflation, the bank is cautious. In a close vote of 5-4, the Monetary Policy Committee opted to keep the Bank Rate at 5.25%. The bank also anticipated weaker economic growth for the remainder of the year and expressed concerns about the sustainability of record wage growth, hinting that it might slow down soon.

The major Europe stock markets had a negative day today:

• CAC 40 decreased 116.89 points or -1.59% to 7,213.90
• FTSE 100 decreased 53.03 points, or -0.69% to 7,678.62
• DAX 30 decreased 209.73 points or -1.33% to 15,571.86

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.00026 or -0.02% to 1.06564
• GBPUSD decreased 0.00477 or -0.39% to 1.22963
• USDCHF increased 0.00557 or 0.62% to 0.90397

The above data was collected around 13.01 EST

Some economic news from Europe today:

UK:

BoE Interest Rate Decision (Sep) remain the same at 5.25%

Swiss:

SNB Interest Rate Decision (Q3) remain the same at 1.75%

US/AMERICAS:

Credit card interest rates are on the rise in the US. The average credit card interest rate is currently around 17%, which is higher than the average rate for personal loans, auto loans, and mortgages. Despite this, delinquency rates among cardholders have stabilized around pre-pandemic levels, even in lower-income areas, according to the Fed economists. However, rising balances may present challenges for some borrowers.

US Market Closings:

• Dow declined 370.46 points or -1.08% to 34,070.42
• S&P 500 declined 72.2 points or -1.64% to 4,330
• Nasdaq declined 245.15 points or -1.82% to 13,223.99
• Russell 2000 declined 28.28 points or -1.56% to 1,781.83

Canada Market Closings:

• TSX Composite declined 423.07 points or -2.09% to 19,791.62
• TSX 60 declined 26.31 points or -2.17% to 1,187.17

Brazil Market Closing:

• Bovespa declined 2,500.27 points or -2.15% to 116,145.05

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 0.138 USD/BBL or 0.15% to 89.798
• Brent increased 0.109 USD/BBL or 0.12% to 93.639
• Natural gas decreased 0.0977 USD/MMBtu or -3.57% to 2.6353
• Gasoline decreased 0.0039 USD/GAL or -0.15% to 2.6153
• Heating oil increased 0.0556 USD/GAL or 1.67% to 3.3824

The above data was collected around 13:19 EST on Thursday.

Top commodity gainers: Heating Oil (1.67%), HRC Steel (1.85%), Butter (1.69%), and Silver (0.65%)

Top commodity losers: Oat (-2.84%), Lean Hogs (-2.87%), Rapeseed (-1.95%), and Natural Gas (-3.57%)

The above data was collected around 13:27 EST on Thursday.

BONDS:

Japan 0.749%(+2.4bp), US 2’s 5.14% (+0.020%), US 10’s 4.4657%(+11.87bps); US 30’s 4.54% (+0.143%), Bunds 2.727% (+2.4bp), France 3.272% (+3.2bp), Italy 4.542% (+8.9bp), Turkey 24.23% (-48bp), Greece 4.192% (+8bp), Portugal 3.482% (+5.5bp), Spain 3.786% (+3.3bp) and UK Gilts 4.298% (+8.2bp).

The above data was collected around 13:31 EST.