Market Talk – January 8, 2024

ASIA:

Japan emphasized the importance of promptly finalizing the signing of a Memorandum of Understanding (MoU) between Sri Lanka and creditor nations for debt restructuring. This comes after an agreement in principle was reached last year. Japan, along with France and India, co-chairs the committee overseeing creditor nations. Sri Lanka, facing its worst financial crisis since independence, is seeking to restructure deals with creditors to address economic challenges. The agreement reached in November covers about $5.9 billion of outstanding public debt, with China, Sri Lanka’s largest creditor, having its own separate deal. Sri Lanka aims to secure debt restructuring agreements with bilateral creditors and bondholders, potentially by March, to fulfill requirements for the second review of a $2.9 billion bailout from the International Monetary Fund.

The major Asian stock markets had a negative day today:

• NIKKEI 225 closed
• Shanghai decreased 41.65 points or -1.42% to 2,887.54
• Hang Seng decreased 310.88 points or -1.88% to 16,224.45
• ASX 200 decreased 37.60 points or -0.50% to 7,451.50
• Kospi decreased 10.26 points or -0.40% to 2,567.82
• SENSEX decreased 670.93 points or -0.93% to 71,355.22
• Nifty50 decreased 197.80 points or -0.91% to 21,513.00

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.00009 or 0.01% to 0.67139
• NZDUSD increased 0.00075 or 0.12% to 0.62465
• USDJPY decreased 0.766 or -0.53% to 143.884
• USDCNY decreased 0.00555 or -0.08% to 7.16015

The above data was collected around 12:42 EST.

Precious Metals:

• Gold decreased 17.64 USD/t oz. or -0.86% to 2,027.86
• Silver decreased 0.036 USD/t. oz or -0.16% to 23.125

The above data was collected around 12:51 EST.

EUROPE/EMEA:

Wealth inequality in the euro zone decreased over the past five years, contrary to expectations, according to the European Central Bank (ECB). The presence of a large middle class with widespread property ownership played a role, benefiting from a surge in house prices. Homeowners’ net wealth grew by 27%, and non-homeowners’ net wealth increased by 17%, primarily due to rising deposits. However, the data does not account for recent declines in house prices, and there is a possibility of reversal as ECB rates are at record highs and property prices are decreasing in several euro zone countries.

The major Europe stock markets had a green day today:

• CAC 40 increased 29.55 points or 0.40% to 7,450.24
• FTSE 100 increased 4.58 points or 0.06% to 7,694.19
• DAX 30 increased 122.26 points or 0.74% to 16.716.47

The major Europe currency markets had a mixed day today:

• EURUSD increased 0.00223 or 0.20% to 1.09633
• GBPUSD increased 0.00389 or 0.31% to 1.27549
• USDCHF decreased 0.00271 or -0.32% to 0.84709

The above data was collected around 13:04 EST.

US/AMERCIAS:

Boeing’s stock tumbled as much as 9% in premarket trading after the Federal Aviation Administration (FAA) grounded dozens of Boeing 737 Max 9 aircraft for urgent inspections. This decision came after a door plug fell off midair during an Alaska Airlines flight over the weekend. The stock recovered some of its losses after the aircraft manufacturer issued inspection instructions to airlines, but still remained down around 6% in early trading. The incident has raised fresh scrutiny of Boeing’s quality assurances and has led to questions about the company’s efforts to ramp up output of the 737 Max. As a result of this development, Boeing’s European rival Airbus saw a 2.5% gain in its stock, with investors speculating that it could take market share from Boeing.

US Market Closings:

• Dow advanced 216.9 points or 0.58% to 37,683.01
• S&P 500 advanced 66.3 points or 1.41% to 4,763.54
• Nasdaq advanced 319.7 points or 2.2% to 14,843.77
• Russell 2000 advanced 37.86 points or 1.94% to 1,989.01

Canada Market Closings:

• TSX Composite advanced 137.36 points or 0.66% to 21,074.91
• TSX 60 advanced 8.51 points or 0.67% to 1,274.15

Brazil Market Closing:

• Bovespa advanced 403.62 points or 0.31% to 132,426.54

ENERGY:

The oil markets had a negative day today:

• Crude Oil decreased 3.442 USD/BBL or -4.66% to 70.368
• Brent decreased 3.166 USD/BBL or -4.02% to 75.594
• Natural gas decreased 0.0419 USD/MMBtu or -1.45% to 2.8511
• Gasoline decreased 0.0745 USD/GAL or -3.54% to 2.0310
• Heating oil decreased 0.046 USD/GAL or -1.76% to 2.5625

The above data was collected around 13:08 EST.

• Top commodity gainers: Cheese (1.08%), Oat (1.90%), Sugar (3.13%) and Rice (0.92%)
• Top commodity losers: HRC Steel (-4.16%), Crude Oil (-4.66%), Brent (-4.02%) and Gasoline (-3.54%)

The above data was collected around 13:20 EST.

BONDS:

Japan 0.601% (-1.6bp), US 2’s 4.33% (-0.058%), US 10’s 3.987% (-5.5bps); US 30’s 4.16% (-0.044%), Bunds 2.139% (-0.4bp), France 2.669% (-1.1bp), Italy 3.822% (-0.7bp), Turkey 24.37% (-110bp), Greece 3.334% (-1.9bp), Portugal 2.911% (-0.5bp); Spain 3.127% (-0.5bp) and UK Gilts 3.767% (-2.2bp)

The above data was collected around 13:23 EST.