Market Talk - Tuesday, Dec. 28

ASIA:

The major Asian stock markets had a green day today:

  • NIKKEI 225 increased 392.70 points or 1.37% to 29,069.16
  • Shanghai increased 14.14 points or 0.39% to 3,630.11
  • Hang Seng increased 56.80 points or 0.24% to 23,280.56
  • ASX 200 closed
  • Kospi increased 20.69 points or 0.69% to 3,020.24
  • SENSEX increased 477.24 points or 0.83% to 57,897.48
  • Nifty50 increased 147.00 points or 0.86% to 17,233.25

The major Asian currency markets had a negative day today:

  • AUDUSD decreased 0.00076 or -0.11% to 0.72286
  • NZDUSD decreased 0.00157 or -0.23% to 0.67997
  • USDJPY decreased 0.13 or -0.11% to 114.73
  • USDCNY decreased 0.00211 or -0.03% to 6.37160

Precious Metals:

  • Gold increased 0.81 USD/t oz. or 0.04% to 1,811.71
  • Silver increased 0.070 USD/t. oz or 0.30% to 23.110

Some economic news from last night:

Japan:

Jobs/applications ratio (Nov) remain the same at 1.15

Unemployment Rate (Nov) increased from 2.7% to 2.8%

Industrial Production (MoM) (Nov) increased from 1.8% to 7.2%

Industrial Production forecast 1m ahead (MoM) (Dec) decreased from 9.0% to 1.6%

Industrial Production forecast 2m ahead (MoM) (Jan) increased from 2.1% to 5.0%

South Korea:

Consumer Confidence (Dec) decreased from 107.6 to 103.9

Some economic news from today:

Japan:

BoJ Core CPI (YoY) increased from 0.6% to 0.8%

Construction Orders (YoY) (Nov) increased from 2.1% to 11.6%

Hong Kong:

Exports (MoM) (Nov) increased from 21.4% to 25.0%

Imports (MoM) (Nov) increased from 17.7% to 20.0%

Trade Balance increased from -30.5B to -11.6B

EUROPE/EMEA:

The world economy is set to surpass $100 trillion for the first time in 2022, two years earlier than previously forecast, according to the Centre for Economics and Business Research. Global gross domestic product will be lifted by the continued recovery from the pandemic, although if inflation persists it may be hard for policymakers to avoid tipping their economies back into recession, the London-based think tank said. The forecast is in line with estimates of the International Monetary Fund, which also predicts global GDP measured in dollars and in current prices will pass $100 trillion in 2022. In its annual World Economic League Table, the CEBR also predicted China will overtake the US in 2030, two years later than forecast a year ago and India will regain sixth position from France next year and become the third-largest economy in 2031, a year later the previously predicted.

The CEBR also predicted that Climate change will lower consumer spending by $2 trillion a year on average through 2036 as companies pass on the cost of decarbonizing investment.

The major Europe stock markets had a green day:

  • CAC 40 increased 40.72 points or 0.57% to 7,181.11
  • FTSE 100 closed
  • DAX 30 increased 128.45 points or 0.81% to 15,963.70

The major Europe currency markets had a negative day today:

  • EURUSD decreased 0.00183 or -0.16% to 1.13107
  • GBPUSD decreased 0.00066 or -0.05% to 1.34346
  • USDCHF decreased 0.00053 or -0.06% to 0.91680

Some economic news from Europe today:

Spain:

Spanish Retail Sales (YoY) (Nov) increased from -0.7% to 4.9%

US/AMERICAS:

The US has signed the Uyghur Forced Labor Prevention act to end purchasing products made in the Xinjiang region, where millions of Uyghurs and Muslims live in labor camps. The Trump Administration previously put a pan on cotton and tomatoes coming from Xinjiang, and this new measure will ensure that goods from the area do not reach the US. Secretary of State Antony Blinken stated that the US has a “commitment to combating forced labor, including in the context on the ongoing genocide in Xinjiang.” However, China maintains innocence, with a representative stating its largest trading partner was attempting to “undermine Xinjiang’s prosperity and stability and contain China’s development.”

Most developed nations are experiencing a population decline. Canada, however, has knocked that trend after increasing by 0.5% (190,339 people) during Q3. This is the nation’s second-highest quarterly gain since Q3 2019 (0.6%; 210,169 people). Immigration has played the biggest role on Canada’s population advance rather than new births. Over 122,748 immigrants entered the country during the third quarter, with many temporary residents becoming permanent.

Holiday spending increased by 8.5% this season from 2020, according to Mastercard SpendingPulse, as reported by CNBC. This marks the fastest increase in 17 years, but it does not account for inflation. Sales were reportedly up 10.7% from 2019, which is a better measure since comparing any year to the extraordinary events that took place in 2020 would alter data. Next month, the National Retail Federation (NRF) will release a more detailed report.

US Market Closings:

  • Dow advanced 95.83 points or 0.26% to 36,398.21
  • S&P 500 declined 4.84 points or -0.1% to 4,786.35
  • Nasdaq declined 89.54 points or -0.56% to 15,781.72
  • Russell 2000 declined 14.95 points or -0.66% to 2,246.51

Canada Market Closings:

  • TSX Composite advanced 10.75 points or 0.05% to 21,229.68
  • TSX 60 declined 0.27 of a point or -0.02% to 1,288.54

Brazil Market Closing:

  • Bovespa declined 690.23 points or -0.65% to 104,864.17

ENERGY:

The oil markets had a mixed day today:

  • Crude Oil increased 0.43 USD/BBL or 0.57% to 76.0000
  • Brent increased 0.41 USD/BBL or 0.52% to 79.0100
  • Natural gas decreased 0.013 USD/MMBtu or -0.32% to 4.0470
  • Gasoline increased 0.0086 USD/GAL or 0.38% to 2.2425
  • Heating oil increased 0.0154 USD/GAL or 0.65% to 2.3689

The above data was collected around 12:46 EST on Tuesday

  • Top commodity gainers: Lithium (2.68%) and Lumber (4.06%), Palm Oil (3.13%), Rice (1.71%)
  • Top commodity losers: Oat (-2.45%), Cotton (-1.77%), Sugar (-1.20%), and Wheat (-2.49%)

The above data was collected around 12:55 EST on Tuesday.

BONDS:

Japan 0.069%(+1bp), US 2’s 0.75% (+0.045%), US 10’s 1.4687% (-0.86bps); US 30’s 1.8811% (-0.00%), Bunds -0.235% (+0.9bp), France 0.131% (+0.4bp), Italy 1.1020% (-2.3bp), Turkey 23.10% (+22bp), Greece 1.334% (-1.1bp), Portugal 0.435% (+2.3bp); Spain 0.527% (+1.31bp) and UK Gilts 0.933% (+1.1bp).

Disclosure: None.

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