Market Talk - Friday, Oct. 21

ASIA:

Singapore’s economy grew at a slower pace of 4.4 percent, but exceeded expectations, in the third quarter of 2022, according to advance estimates released by the Ministry of Trade and Industry (MTI) last Friday. On a quarter-on-quarter seasonally adjusted basis, Singapore’s gross domestic product (GDP) expanded by 1.5 percent after contracting 0.2 percent in the second quarter. Authorities had in August narrowed the official growth forecast for 2022 to a range of 3 percent to 4 percent, from 3 percent to 5 percent on the back of a weakening external demand outlook. The preliminary GDP estimates for the third quarter of this year will be released by MTI in November.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 116.38 points or -0.43% to 26,890.58
  • Shanghai increased 3.88 points or 0.13% to 3,038.93
  • Hang Seng decreased 69.10 points or -0.42% to 16,211.12
  • Kospi decreased 4.97 points or -0.22% to 2,213.12
  • ASX 200 decreased 53.90 points or -0.80% to 6,676.80
  • SENSEX increased 104.25 points or 0.18% to 59,307.15
  • Nifty50 increased 12.35 points or 0.07% to 17,576.30

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00923 or 1.47% to 0.63653
  • NZDUSD increased 0.00657 or 1.16% to 0.57457
  • USDJPY decreased 2.921 or -1.94% to 147.263
  • USDCNY decreased 0.02967 or -0.41% to 7.22653

Precious Metals:

  • Gold increased 24.83 USD/t oz. or 1.53% to 1,652.49
  • Silver increased 0.492 USD/t. oz or 2.64% to 19.152

Some economic news from last night:

Japan:

CPI, n.s.a (MoM) (Sep) remain the same at 0.4%

National Core CPI (YoY) (Sep) increased from 2.8% to 3.0%

National CPI (YoY) (Sep) remain the same at 3.0%

South Korea:

PPI (YoY) (Sep) decreased from 8.2% to 8.0%

PPI (MoM) (Sep) increased from -0.4% to 0.2%

New Zealand:

Exports (Sep) increased from 5.29B to 6.03B

Imports (Sep) decreased from 7.92B to 7.64B

Trade Balance (YoY) (Sep) increased from -12,500M to -11,950M

Trade Balance (MoM) (Sep) increased from -2,625M to -1,615M

Some economic news from today:

Hong Kong:

CPI (YoY) (Sep) increased from 1.9% to 4.4%

India:

Bank Loan Growth increased from 16.4% to 17.9%

Deposit Growth increased from 9.2% to 9.6%

FX Reserves, USD decreased from 532.87B to 528.37B

EUROPE/EMEA:

Interest rates set by the Bank of England are unlikely to rise above 5% as markets previously expected, a senior official has suggested, saying the hit to the economy from such a steep increase would be damaging. Financial markets began to reduce their forecasts for mortgage borrowing rates, which had leaped following the government’s tax-cutting mini-budget, immediately after Broadbent’s comments. One of the Bank’s deputy governors, Ben Broadbent, said the rise in rates priced in by markets – from 2.25% now to 5.25% over the coming months – was not a foregone conclusion and would deliver a “pretty material” hit to the economy.

The major Europe stock markets had a mixed day:

  • CAC 40 decreased 51.51 points or -0.85% to 6,035.39
  • FTSE 100 increased 25.82 points or 0.37% to 6,969.73
  • DAX 30 decreased 36.51 points or -0.29% to 12,730.90

The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00552 or 0.56% to 0.98329
  • GBPUSD increased 0.00376 or 0.34% to 1.12564
  • USDCHF decreased 0.00336 or -0.33% to 1.00004

Some economic news from Europe today:

UK:

Core Retail Sales (YoY) (Sep) decreased from -5.3% to -6.2%

Core Retail Sales (MoM) (Sep) increased from -1.7% to -1.5%

Retail Sales (MoM) (Sep) increased from -1.7% to -1.4%

Retail Sales (YoY) (Sep) decreased from -5.6% to -6.9%

Euro Zone:

Consumer Confidence (Oct) increased from -28.8 to -27.6

US/AMERICAS:

America’s budget deficit fell for the first fiscal half of 2022, primarily due to the drop in spending for COVID programs. The deficit fell to $1.375 trillion compared to $2.776 trillion at the same time last year. The deficit was expected to be lower before the unexpected student loan forgiveness program pushed by the Biden Administration that cost $639.5 billion. Revenue for the 2022 fiscal year was $4.896 trillion compared to $6.272 trillion in outlays.

US Market Closings:

  • Dow advanced 748.97 points or 2.47% to 31,082.56
  • S&P 500 advanced 86.97 points or 2.37% to 3,752.75
  • Nasdaq advanced 244.87 points or 2.31% to 10,859.72
  • Russell 2000 advanced 37,85 points or 2.22% to 1,742.24

Canada Market Closings:

  • TSX Composite advanced 281.66 points or 1.52% to 18,860.95
  • TSX 60 advanced 17.37 points or 1.54% to 1,143.32

Brazil Market Closing:

  • Bovespa advanced 2,757.68 points or 2.35% to 119,928.79

ENERGY:

The oil markets had a mixed day today:

  • Crude Oil increased 0.544 USD/BBL or 0.64% to 85.054
  • Brent increased 0.983 USD/BBL or 1.06% to 93.363
  • Natural gas decreased 0.4035 USD/MMBtu or -7.53% to 4.9545
  • Gasoline increased 0.0035 USD/GAL or 0.13% to 2.6513
  • Heating oil increased 0.0471 USD/GAL or 1.25% to 3.8039

The above data was collected around 13:26 EST on Friday

  • Top commodity gainers: Copper (2.00%), Platinum (1.65%), Silver (2.64%) and Lean Hogs (2.60%)
  • Top commodity losers: Cocoa (-1.16%), Palladium (-2.27%), Natural Gas (-7.53%) and Rice (-0.88%)

The above data was collected around 13:32 EST on Friday.

BONDS:

Japan 0.255%(+0.5bp), US 2’s 4.50% (-0.108%), US 10’s 4.2167% (-0.93bps); US 30’s 4.30% (+0.083%), Bunds 2.417% (+2.3bp), France 2.972% (+1.8bp), Italy 4.758% (+2bp), Turkey 10.50% (+8p), Greece 5.113% (+6.7bp), Portugal 3.486% (+3.2bp); Spain 3.579% (+3.1bp) and UK Gilts 4.057% (+15.2bp).


More By This Author:

Market Talk - Thursday, Oct. 20
Market Talk - Wednesday, Oct. 19
Market Talk - Tuesday, Oct. 18

Disclosure: None.

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