Market Talk - Tuesday, Dec. 7

ASIA:

India surpassed Brazil in food exports to the League of Arab States for the first time in 15 years as the COVID-19 pandemic disrupted trade flows in 2020, according to data provided by the Arab-Brazil Chamber of Commerce to Reuters on Tuesday. Brazil accounted for 8.15% of the total agribusiness products imported by the 22 League members last year, whereas India captured 8.25% of that trade, ending Brazil’s 15-year advantage, the data showed. China’s push to boost its own food inventories during the pandemic also diverted some of Brazil’s trade with the Arabs, leading countries such as Saudi Arabia to step up the promotion of domestic food production while seeking alternative suppliers.

The major Asian stock markets had a green day today:

  • NIKKEI 225 increased 528.23 points or 1.89% to 28,455.60
  • Shanghai increased 5.78 or 0.16% to 3,595.09
  • Hang Seng increased 634.28 points or 2.72% to 23,983.66
  • ASX 200 increased 68.80 points or 0.95 to 7,313.90
  • Kospi increased 18.47 points or 0.62% to 2,991.72
  • SENSEX increased 886.51 points or 1.56% to 57,633.65
  • Nifty50 increased 264.45 points or 1.56% to 17,176.70

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00659 or 0.94% to 0.71115
  • NZDUSD increased 0.00264 or 0.39% to 0.67762
  • USDJPY increased 0.15 or 0.13% to 113.62
  • USDCNY decreased 0.00942 or -0.15% to 6.36507

Precious Metals:

  • Gold increased 8.21 USD/t oz. or 0.46% to 1,786.32
  • Silver increased 0.238 USD/t. oz or 1.06% to 22.590

Some economic news from last night:

Japan:

Household Spending (MoM) (Oct) decreased from 5.0% to 3.4%

Household Spending (YoY) (Oct) increased from -1.9% to -0.6%

Australia:

House Price Index (QoQ) (Q3) decreased from 6.7% to 5.0%

RBA Interest Rate Decision (Dec) remain the same at 0.10%

Some economic news from today:

China:

FX Reserves (USD) (Nov) increased from 3.218T to 3.222T

Exports (YoY) (Nov) decreased from 27.1% to 22.0%

Imports (YoY) (Nov) increased from 20.6% to 31.7%

Trade Balance (USD) (Nov) decreased from 84.54B to 71.72B

Japan:

Leading Index (MoM) (Oct) increased from -0.4% to 1.9%

Hong Kong:

Foreign Reserves (USD) (Nov) increased from 498.00B to 499.50B

Singapore:

Foreign Reserves USD (MoM) (Nov) decreased from 419.0B to 413.0B

EUROPE/EMEA:

The Bank of England’s monetary policy chief has said inflation is likely to soar “comfortably” above 5% next spring when the energy regulator Ofgem raises a price cap affecting millions of households.UK car sales grew in November, led by rising demand for electric vehicles, but were still nearly a third below their pre-pandemic levels.

The major Europe stock markets had a green day:

  • CAC 40 increased 199.61 points or 2.91% to 7,065.39
  • FTSE 100 increased 107.62 points or 1.49% to 7,339.90
  • DAX 30 increased 433.15 points or 2.82% to 15,813.94

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.0036 or -0.32% to 1.12472
  • GBPUSD decreased 0.00243 or -0.18% to 1.32365
  • USDCHF increased 0.00094 or 0.10% to 0.92630

Some economic news from Europe today:

Swiss:

Unemployment Rate n.s.a. (Nov) remain the same at 2.5%

Unemployment Rate s.a. (Nov) decreased from 2.7% to 2.5%

UK:

Halifax House Price Index (YoY) remain the same at 8.2%

Halifax House Price Index (MoM) (Nov) remain the same at 1.0%

Germany:

German Industrial Production (MoM) (Oct) increased from -0.5% to 2.8%

German ZEW Current Conditions (Dec) decreased from 12.5 to -7.4

German ZEW Economic Sentiment (Dec) decreased from 31.7 to 29.9

France:

French Current Account (Oct) increased from -2.80B to -2.60B

French Exports (Oct) increased from 42.0B to 43.1B

French Imports (Oct) increased from 48.9B to 50.6B

French Reserve Assets Total (Nov) increased from 216,645.0M to 221,771.0M

French Trade Balance (Oct) decreased from -6.9B to -7.5B

Euro Zone:

Employment Change (QoQ) (Q3) increased from 0.7% to 0.9%

Employment Change (YoY) (Q3) increased from 1.8% to 2.1%

Employment Overall (Q3) increased from 160,757.7K to 160,973.6K

GDP (QoQ) (Q3) increased from 2.1% to 2.2%

GDP (YoY) (Q3) decreased from 14.2% to 3.9%

ZEW Economic Sentiment (Dec) increased from 25.9 to 26.8

US/AMERICAS:

In a move that angered China, US diplomats have agreed to boycott the Winter Olympics in Beijing, citing human rights abuses. Ministry spokesperson Zhao Lijian said, “The wrong move of the US has undermined the foundation and atmosphere for China-US sports exchanges and Olympic cooperation. It has shot itself in the foot. The US should understand the grave consequences of its move.” This sign of disrespect will not help push forward China-US diplomatic relations.

Trade soared in Canada this October, mainly due to motor vehicles and energy products. Exports rose 6.4%, and imports rose 5.3%. The nation’s trade surplus grew from $1.4 billion in September to $2.1 billion in October, marking the largest surplus in 2021. Increased exports on motor vehicles and parts, as well as energy products, accounted from nearly 80% of exports.

US Market Closings:

  • Dow advanced 492.4 points or 1.4% to 35,719.43
  • S&P 500 advanced 95.8 points or 2.07% to 4,686.75
  • Nasdaq advanced 461.76 points or 3.03% to 15,686.92
  • Russell 2000 advanced 50.31 points or 2.28% to 2,253.79

Canada Market Closings:

  • TSX Composite advanced 301.55 points or 1.45% to 21,162.65
  • TSX 60 advanced 17.09 points or 1.35% to 1,281.41

Brazil Market Closing:

  • Bovespa advanced 698.8 points or 0.65% to 107,557.67

 

ENERGY:

The oil markets had a green day today:

  • Crude Oil increased 3.2 USD/BBL or 4.60% to 72.6900
  • Brent increased 2.93 USD/BBL or 4.01% to 76.0100
  • Natural gas increased 0.085 USD/MMBtu or 2.32% to 3.7420
  • Gasoline increased 0.0668 USD/GAL or 3.27% to 2.1101
  • Heating oil increased 0.0558 USD/GAL or 2.57% to 2.2270

The above data was collected around 12:07 EST on Tuesday

  • Top commodity gainers: Crude Oil (4.60%) and Brent (4.01%), Gasoline (3.27%), Palm Oil (3.81%)
  • Top commodity losers: Methanol (-3.02%), Soybeans (-1.21%), Lumber (-1.20%), and Canola (-0.56%)

The above data was collected around 12:15 EST on Tuesday

BONDS:

Japan 0.052%(+1.3bp), US 2’s 0.68% (+0.050%), US 10’s 1.4495%(+1.7bps); US 30’s 2.0160% (-0.01%), Bunds -0.373% (+1.4bp), France -0.023% (+0.9bp), Italy 0.92% (+3.5bp), Turkey 20.44% (-7bp), Greece 1.247% (-4.1bp), Portugal 0.28% (+2.1bp); Spain 0.342% (-0.35bp) and UK Gilts 0.73% (-0.4bp).

Disclosure: None.

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