Market Talk - Thursday, Dec. 23

ASIA:

Japan’s government is set to unveil its largest annual budget on Friday with $943 billion in spending for the fiscal year beginning next April, further straining the industrial world’s heaviest debt, Reuters reported. The first annual budget to be compiled by Prime Minister Fumio Kishida’s government got a boost from Covid-19 countermeasures, social security spending to support a fast-aging population, and the biggest-ever military outlays to deal with threats from China. The 107.6 trillion yen ($943 billion) annual budget for the 2022 fiscal year underscores the challenge Kishida faces as he tries to realize “new capitalism” with a cycle of growth and wealth distribution and restore tattered public finances.

The major Asian stock markets had a green day today:

  • NIKKEI 225 increased 236.16 points or 0.83% to 28,798.37
  • Shanghai increased 20.72 or 0.57% to 3,643.34
  • Hang Seng increased 91.31 points or 0.40% to 23,193.64
  • ASX 200 increased 22.80 points or 0.31% to 7,387.60
  • Kospi increased 13.69 points or 0.46% to 2,998.17
  • SENSEX increased 384.72 points or 0.68% to 57,315.28
  • Nifty50 increased 117.15 points or 0.69% to 17,072.60

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00347 or 0.48% to 0.72497
  • NZDUSD increased 0.00277 or 0.41% to 0.68336
  • USDJPY increased 0.34 or 0.30% to 114.45
  • USDCNY decreased 0.00205 or -0.03% to 6.37491

Precious Metals:

  • Gold increased 6.88 USD/t oz. or 0.38% to 1,810.28
  • Silver increased 0.138 USD/t. oz or 0.61% to 22.911

Some economic news from last night:

Australia:

Housing Credit (Nov) increased from 0.6% to 0.7%

Private Sector Credit (MoM) (Nov) increased from 0.5% to 0.9%

Some economic news from today:

Japan:

Coincident Indicator (MoM) increased from -2.6% to 1.1%

Leading Index increased from 100.2 to 101.5

Leading Index (MoM) increased from -0.4% to 1.3%

Singapore:

CPI (YoY) (Nov) increased from 3.2% to 3.8%

EUROPE/EMEA:

Italian Prime Minister Mario Draghi and French President Emmanuel Macron are pushing to free their economies from the EU’s pre-pandemic strictures. They face resistance from leaders of northern countries, which pride themselves on appearing more fiscally responsible—as well as institutional inertia. The quarter-century-old Stability and Growth Pact is contained in a treaty, so any amendments would have to be ratified by 27 legislatures. With the European Central Bank having just completed a contentious revamping of monetary policy, the outcome of this next battle will define the scope of fiscal action for the coming decade and perhaps the EU’s growth prospects as well.

The major Europe stock markets had a green day:

  • CAC 40 increased 54.48 points or 0.77% to 7,106.15
  • FTSE 100 increased 31.68 points or 0.43% to 7,373.34
  • DAX 30 increased 162.84 points or 1.04% to 15,756.31

The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00046 or 0.04% to 1.13315
  • GBPUSD increased 0.00544 or 0.41% to 1.34087
  • USDCHF decreased 0.0013 or -0.14% to 0.91815

Some economic news from Europe today:

Germany:

German Import Price Index (MoM) (Nov) decreased from 3.8% to 3.0%

German Import Price Index (YoY) (Nov) increased from 21.7% to 24.7%

Norway:

Unemployment Rate (Oct) remain the same at 3.6%

Spain:

Spanish GDP (QoQ) (Q3) increased from 1.2% to 2.6%

Spanish GDP (YoY) (Q3) decreased from 17.7% to 3.4%

Italy:

Italian Business Confidence (Dec) decreased from 115.9 to 115.2

Italian Consumer Confidence (Dec) increased from 117.5 to 117.7

US/AMERICAS:

Inflation in the US hit a new high in November after spiking 5.7%. This marks the fastest pace of inflation since February 1982, when inflation soared to 6.17%. As a reminder, the target rate set by the Federal Reserve is 2%. November’s reading is 0.5% above October’s and shows that inflation is far from cooling.

US CPI soared to 6.8% in November on an annual basis, according to the Bureau of Labor and Statistics. This represents a 0.9% increase from October. The energy index rose 3.5%, while the gasoline index rose 6.2%. The food index increased 0.7% as well. The reading marks the largest increase in over 13 years.

US Market Closings:

  • Dow advanced 196.67 points or 0.55% to 35,950.56
  • S&P 500 advanced 29.23 points or 0.62% to 4,725.79
  • Nasdaq advanced 131.48 points or 0.85% to 15,653.37
  • Russell 2000 advanced 19.67 points or 0.89% to 2,241.58

Canada Market Closings:

  • TSX Composite advanced 148.88 points or 0.71% to 21,218.93
  • TSX 60 advanced 9.7 points or 0.76% to 1,288.81

Brazil Market Closing:

  • Bovespa declined 352.4 points or -0.33% to 104,891.32

ENERGY:

The oil markets had a mixed day today:

  • Crude Oil increased 0.83 USD/BBL or 1.14% to 73.5900
  • Brent increased 1.16 USD/BBL or 1.54% to 76.4500
  • Natural gas decreased 0.239 USD/MMBtu or -6.01% to 3.7370
  • Gasoline increased 0.038 USD/GAL or 1.75% to 2.2060
  • Heating oil increased 0.0189 USD/GAL or 0.82% to 2.3267

The above data was collected around 13:42 EST on Thursday

  • Top commodity gainers: Gasoline (1.75%) and Lumber (2.93%), Bitumen (1.99%), Palladium (3.44%)
  • Top commodity losers: Rubber (-1.69%), Orange Juice (-1.53%), Canola (-1.11%), and Natural Gas (-6.01%)

The above data was collected around 13:49 EST on Thursday

BONDS:

Japan 0.069%(+1bp), US 2’s 0.69% (+0.027%), US 10’s 1.4926% (+3.94bps); US 30’s 1.9066% (+0.05%), Bunds -0.246% (+4.7bp), France 0.125% (+5bp), Italy 1.113% (+5.7bp), Turkey 21.82% (-36bp), Greece 1.344% (+3.3bp), Portugal 0.410% (+4.2bp); Spain 0.537% (+6.45bp) and UK Gilts 0.915% (+2.8bp).

Disclosure: None.

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