Market Talk - Tuesday, Dec. 14

ASIA:

US Secretary of State Antony Blinken visited Indonesia on Tuesday to discuss the Indo-Pacific trade pact. Blinken accused China of “aggressive actions” in the South China Sea that could threaten over $3 trillion in annual commerce. “I am here, we are here, because what happens in the Indo-Pacific will, more than any other region, shape the trajectory of the world in the 21st century,” Blinken said. The Biden Administration has not announced detailed plans for their Indo-Pacific strategy, but Blinken stated he is seeking to adopt closer diplomacy, military, and intelligence operations with US allies in the region.

The major Asian stock markets had a negative day today:

  • NIKKEI 225 decreased 207.85 points or -0.73% to 28,432.64
  • Shanghai decreased 19.56 or -0.53% to 3,661.53
  • Hang Seng decreased 318.63 points or -1.33% to 23,635.95
  • ASX 200 decreased 0.90 points or -0.01 to 7,378.40
  • Kospi decreased 13.71 points or -0.46% to 2,987.95
  • SENSEX decreased 166.33 points or -0.29% to 58,117.09
  • Nifty50 decreased 43.35 points or -0.25% to 17,324.90

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.00282 or -0.40% to 0.71025
  • NZDUSD decreased 0.00076 or -0.11% to 0.67447
  • USDJPY increased 0.06 or 0.05% to 113.64
  • USDCNY increased 0.00261 or 0.04% to 6.37448

Precious Metals:

  • Gold decreased 13.60 USD/t oz. or -0.76% to 1,773.34
  • Silver decreased 0.390 USD/t. oz or -1.75% to 21.920

Some economic news from last night:

Australia:

NAB Business Confidence (Nov) decreased from 21 to 12

Japan:

Industrial Production (MoM) (Oct) increased from 1.1% to 1.8%

Some economic news from today:

India:

WPI Inflation (YoY) (Nov) increased from 12.54% to 14.23%

EUROPE/EMEA:

Industrial production rose in October throughout the Eurozone, marking the first month of growth after two consecutive months of declines. Factory output came in at 1.1% MoM, according to Eurostat, Capital goods production rose 3%, durable consumer goods advanced 1.7%, non-durable consumer goods rose 0.4%, and energy advanced 01.%. Intermediate goods, however, declined -0.6%. On a yearly basis, industrial production rose 3.3% in October, while September’s figure was revised from 5.1% to 5.2%.

The major European stock markets had a negative day:

  • CAC 40 decreased 47.60 points or -0.69% to 6,895.31
  • FTSE 100 decreased 12.80 points or -0.18% to 7,218.64
  • DAX 30 decreased 168.16 points or -1.08% to 15,453.56

The major European currency markets had a mixed day today:

  • EURUSD decreased 0.00113 or -0.10% to 1.12711
  • GBPUSD increased 0.0015 or 0.11% to 1.32259
  • USDCHF increased 0.00097 or 0.11% to 0.92344

Some economic news from Europe today:

UK:

Average Earnings Index +Bonus (Oct) decreased from 5.9% to 4.9%

Claimant Count Change (Nov) decreased from -14.9K to -49.8K

Employment Change 3M/3M (MoM) (Oct) decreased from 247K to 149K

Unemployment Rate (Oct) decreased from 4.3% to 4.2%

Swiss:

PPI (MoM) (Nov) decreased from 0.6% to 0.5%

Euro Zone:

Industrial Production (MoM) (Oct) increased from -0.2% to 1.1%

US/AMERICAS:

Commercial truck operating costs are on the rise due to inflation, according to the ATRI Analysis of the Operational Costs of Trucking 2021 Update. Over the past decade, the average cost for operating a commercial truck in the US has been between $1.65 and $1.87. The breakeven price is now $2.167. Trucking companies are paying a near 36% increase in driver wages, 24% increase in fuel, 12% increase in empty miles, and 7% in maintenance and repairs.

California announced a new mask mandate for all indoor establishments. The mandates will begin on Wednesday and last until January 15. Everyone, regardless of vaccination status, will be required to wear a mask. The state is also posing harsher restrictions for the unvaccinated who must provide proof of a negative PCR test within 48 hours of attending large gatherings. Washington, Oregon, Nevada, Hawaii, New Mexico, Illinois, New York, and Connecticut also have similar mandates in place at this time.

US Market Closings:

  • Dow declined 106.77 points or -0.3% to 35,544.18
  • S&P 500 declined 34.88 points or -0.75% to 4,634.09
  • Nasdaq declined 175.64 points or -1.14% to 15,237.64
  • Russell 2000 declined 20.85 points or -0.96% to 2,159.65

Canada Market Closings:

  • TSX Composite declined 99.88 points or -0.48% to 20,648.57
  • TSX 60 declined 3.66 points or -0.29% to 1,255.34

Brazil Market Closing:

  • Bovespa declined 623.4 points or -0.58% to 106,759.92

ENERGY:

The oil markets had a negative day today:

  • Crude Oil decreased 1.46 USD/BBL or -2.05% to 69.8300
  • Brent decreased 1.54 USD/BBL or -2.07% to 72.8500
  • Natural gas decreased 0.073 USD/MMBtu or -1.92% to 3.7210
  • Gasoline decreased 0.0336 USD/GAL or -1.59% to 2.0829
  • Heating oil decreased 0.0389 USD/GAL or -1.74% to 2.1939

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

  • Top commodity gainers: Coal (2.86%) and Orange Juice (3.61%), Lithium (2.25%), Cocoa (3.84%)
  • Top commodity losers: Palm Oil (-2.65%), Brent (-2.07%), Crude Oil (-2.05%), and Palladium (-3.66%)

The above data was collected around 12:30 EST on Tuesday.

BONDS:

Japan 0.055%(+0.6bp), US 2’s 0.6508% (+0.02%), US 10’s 1.4394%(+2.55bps); US 30’s 1.8233% (+0.02%), Bunds -0.363% (+1.7bp), France -0.017% (+1.6bp), Italy 0.952% (+4bp), Turkey 20.72% (+10bp), Greece 1.333% (-2.5bp), Portugal 0.295% (+3.1bp); Spain 0.346% (+2.94bp) and UK Gilts 0.731% (+3.3bp).

Disclosure: None.

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