Market Talk - Monday, Nov. 14

ASIA:

Chinese President Xi Jinping told US President Joe Biden during their first face-to-face meeting since 2017 that the Taiwan issue is “the very core of China’s core interests” and the “first red line” in bilateral ties that must not be crossed. Beijing considers Taiwan an inalienable part of China. The self-governing island’s democratically elected government rejects Beijing’s claim of sovereignty over it, while the United States has often been accused by China of supporting Taiwan independence in recent years. At a meeting held on the Indonesian island of Bali, the first between the two leaders since Biden became president, Xi urged the U.S. leader to translate U.S. commitments made to Beijing regarding Taiwan into concrete actions.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 300.10 points or -1.06% to 27,963.47
  • Shanghai decreased 3.89 points or -0.13% to 3,083.40
  • Hang Seng increased 294.05 points or 1.70% to 17,619.71
  • Kospi decreased 8.51 points or -0.34% to 2,474.65
  • ASX 200 decreased 11.70 points or -0.16% to 7,146.30
  • SENSEX decreased 170.89 points or -0.28% to 61,624.15
  • Nifty50 decreased 20.55 points or -0.11% to 18,329.15

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.00119 or -0.18% to 0.66960
  • NZDUSD decreased 0.00039 or -0.06% to 0.60961
  • USDJPY increased 1.613 or 1.16% to 140.397
  • USDCNY decreased 0.02536 or -0.36% to 7.06314

Precious Metals:

  • Gold decreased 0.71 USD/t oz. or -0.04% to 1,769.98
  • Silver increased 0.199 USD/t. oz or 0.92% to 21.880

Some economic news from last night:

New Zealand:

Performance of Services Index increased from 55.9 to 57.4

Some economic news from today:

China:

FDI remain the same at 15.60%

India:

CPI (YoY) (Oct) decreased from 7.41% to 6.77%

WPI Food (YoY) (Oct) decreased from 11.03% to 8.33%

WPI Fuel (YoY) (Oct) decreased from 32.61% to 23.17%

WPI Inflation (YoY) (Oct) decreased from 10.70% to 8.39%

WPI Manufacturing Inflation (YoY) (Oct) decreased from 6.34% to 4.42%

EUROPE/EMEA:

UK interest rates are already higher than they need to be to get inflation back to target, the Bank of England policymaker argued on Friday. Silvana Tenreyro, an external member of the BoE’s monetary policy committee, told a conference in London that “policy was already in restrictive territory” before the MPC meeting in November when most members voted to raise interest rates by 0.75 percentage points to 3 percent. cent. Even if interest rates remain at current levels, the economy is likely to slip into recession and inflation will fall below target in the medium term, prompting the BoE to cut interest rates from 2024, it said. If interest rates were to rise in line with recent market expectations, the UK would face a prolonged recession accompanied by a sharp rise in unemployment and further declines in living standards.

The major Europe stock markets had a green day:

  • CAC 40 increased 14.55 points or 0.22% to 6,609.17
  • FTSE 100 increased 67.13 points or 0.92% to 7,385.17
  • DAX 30 increased 88.44 points or 0.62% to 14,313.30

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.00088 or -0.08% to 1.03459
  • GBPUSD decreased 0.00902 or -0.76% to 1.17427
  • USDCHF increased 0.00025 or 0.03% to 0.94195

Some economic news from Europe today:

Swiss:

PPI (YoY) (Oct) decreased from 5.4% to 4.9%

PPI (MoM) (Oct) decreased from 0.2% to 0.0%

Euro Zone:

Industrial Production (MoM) (Sep) decreased from 2.0% to 0.9%

Industrial Production (YoY) (Sep) increased from 2.8% to 4.9%

 US/AMERICAS:

Fed Vice Chair Lael Brainard surprised the markets by stating that the Fed may slow the pace of rate hikes. “I think it will probably be appropriate soon to move to a slower pace of rate increases,” she said during a live Bloomberg News interview. This comes after four consecutive 75 bps hikes and rates now sitting at 3.75% to 4%. Inflation in October still remains well above the Fed’s 2% target at 7.7%.

US Market Closings:

  • Dow declined 211.16 points or -0.63% to 33,536.7
  • S&P 500 declined 35.68 points or -0.89% to 3,957.25
  • Nasdaq declined 127.11 points or -1.12% to 11,196.22
  • Russell 2000 declined 21.49 points or -1.14% to 1,861.25

Canada Market Closings:

  • TSX Composite declined 189.7 points or -0.94% to 19,921.81
  • TSX 60 declined 10.56 points or -0.87% to 1,206.14

Brazil Market Closing:

  • Bovespa advanced 907.79 points or 0.81% to 113,161.28

ENERGY:

The oil markets had a mixed day today:

  • Crude Oil decreased 2.536 USD/BBL or -2.85% to 86.424
  • Brent decreased 2.416 USD/BBL or -2.52% to 93.574
  • Natural gas increased 0.4128 USD/MMBtu or 7.02% to 6.2918
  • Gasoline decreased 0.0647 USD/GAL or -2.48% to 2.5449
  • Heating oil increased 0.0108 USD/GAL or 0.30% to 3.5661

The above data was collected around 12:10 EST on Monday  

  • Top commodity gainers: Natural Gas (7.02%), Steel (3.21%), Rhodium (3.04%) and Zinc (3.11%)
  • Top commodity losers: Palm Oil (-4.08%), Lumber (-3.28%), Crude Oil (-2.85%) and Orange Juice (-3.03%)

The above data was collected around 12:35 EST on Monday.

BONDS:

Japan 0.250%(+1bp), US 2’s 4.40% (+0.075%), US 10’s 3.8743% (+4.53bps); US 30’s 4.08% (-0.002%), Bunds 2.149% (-0.9bp), France 2.657% (-1.2bp), Italy 4.179% (-1.9bp), Turkey 11.60% (-13bp), Greece 4.327% (-18.1bp), Portugal 3.177% (+2.2bp); Spain 3.217% (+1.2bp) and UK Gilts 3.3530% (-0.4bp).   


More By This Author:

Market Talk - Tuesday, Nov. 8
Market Talk - Monday, Nov. 7
Market Talk - Friday, Nov. 4

Disclosure: None.

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