ASIA:

Rising home prices and rentals in large Indian cities could pose a new challenge to the country’s central bank in its fight against inflation, even though headline consumer price rises have likely peaked, analysts warn. Housing rentals and ancillary costs have a 10.07% weightage in India’s consumer price inflation basket and are near three-year highs, posing a fresh worry for the central bank that had to contend with rising food prices for most of last year. Urban housing inflation rose to 4.47% year-on-year in December 2022, versus 3.61% in the same period a year ago and 3.21% in December 2020, data from the Ministry of Statistics and Programme Implementation showed. India’s retail inflation fell to 5.72% in December, within the RBI’s comfort zone of 2%-6% for a second straight month after staying above the upper end for the first 10 months of last year.

The major Asian stock markets had a mixed day today:

• NIKKEI 225 increased 316.36 points or 1.23% to 26,138.68
• Shanghai decreased 3.35 points or -0.10% to 3,224.24
• Hang Seng decreased 169.08 points or -0.78% to 21,577.64
• ASX 200 decreased 1.90 points or -0.03% to 7,386.30
• Kospi decreased 20.47 points or -0.85% to 2,379.39
• SENSEX increased 562.75 points or 0.94% to 60,655.72
• Nifty50 increased 158.45 points or 0.89% to 18,053.30

The major Asian currency markets had a mixed day today:

• AUDUSD increased 0.00290 or 0.41% to 0.69828
• NZDUSD increased 0.00457 or 0.72% to 0.64247
• USDJPY decreased 0.290 or -0.23% to 128.250
• USDCNY increased 0.03420 or 0.51% to 6.77670

Precious Metals:

• Gold decreased 5.69 USD/t oz. or -0.30% to 1,912.31
• Silver decreased 0.419 USD/t. oz or -1.72% to 23.980

Some economic news from last night:

China:

Fixed Asset Investment (YoY) (Dec) decreased from 5.3% to 5.1%

GDP (QoQ) (Q4) decreased from 3.9% to 0.0%

GDP (YoY) (Q4) decreased from 3.9% to 2.9%

Chinese GDP YTD (YoY) (Q4) remain the same at 3.0%

Industrial Production (YoY) (Dec) decreased from 2.2% to 1.3%

Chinese Industrial Production YTD (YoY) (Dec) decreased from 3.8% to 3.6%

Chinese Unemployment Rate decreased from 5.7% to 5.5%

Japan:

Tertiary Industry Activity Index (MoM) decreased from 0.5% to -0.2%

Australia:

Westpac Consumer Sentiment (Jan) increased from 3.0% to 5.0%

New Zealand:

NZIER Business Confidence (Q4) decreased from -42% to -70%

Some economic news from today:

New Zealand:

GlobalDairyTrade Price Index increased from -2.8% to -0.1%

EUROPE/EMEA:

Pay growth in Britain, which is being closely watched by the Bank of England as it gauges how much higher to raise interest rates, picked up more pace in the three months to November, official data showed on Tuesday. Pay excluding bonuses rose by an annual 6.4% in the September-to-November period, the biggest increase since records began in 2001, not counting jumps in the COVID-19 period which were distorted by lockdowns and government support measures. Pay, including bonuses, also rose by 6.4%, the Office for National Statistics said. The ONS said Britain’s jobless rate held at 3.7%, in line with the poll, close to its lowest in almost 50 years. Employment rose by a faster-than-expected 27,000. BoE Governor Andrew Bailey said on Monday that a shortage of workers in the labor market posed a major risk to forecasts that inflation will fall from its current levels above 10%.

The major Europe stock markets had a mixed day:

• CAC 40 increased 33.85 points or 0.48% to 7,077.16
• FTSE 100 decreased 9.04 points or -0.12% to 7,851.03
• DAX 30 increased 53.03 points or 0.35% to 15,187.07

The major Europe currency markets had a mixed day today:

• EURUSD decreased 0.00221 or -0.20% to 1.07939
• GBPUSD increased 0.00735 or 0.60% to 1.22645
• USDCHF decreased 0.00578 or -0.62% to 0.92072

Some economic news from Europe today:

Italy:

Italian CPI (MoM) (Dec) decreased from 0.5% to 0.3%

UK:

Average Earnings Index +Bonus (Nov) increased from 6.2% to 6.4%

Claimant Count Change (Dec) increased from 16.1K to 19.7K

Employment Change 3M/3M (MoM) (Nov) remain the same at 27K

Unemployment Rate (Nov) remain the same at 3.7%

Germany:

German CPI (YoY) (Dec) decreased from 10.0% to 8.6%

German CPI (MoM) (Dec) decreased from -0.5% to -0.8%

German ZEW Economic Sentiment (Jan) increased from -23.3 to 16.9

Euro Zone:

ZEW Economic Sentiment (Jan) increased from -23.6 to 16.7

US/AMERICAS:

The Dow fell during early trading after Goldman Sachs (GS) revealed its steepest loss in earnings within the past ten years. Earnings per share came in at only $3.32 compared to the estimate of $5.48, according to Refinitiv. Quarterly earnings fell 66% from a year prior to $1.33 billion. Revenue came in at 10.59 billion USD, a 16% decrease from Q4 2021. The bank also noted it is seeing“early signs of consumer credit deterioration,” providing a broader picture that Americans are struggling in the current economy.

US Market Closings:

• Dow declined 391.76 points or -1.14% to 33,910.85
• S&P 500 declined 8.12 points or -0.2% to 3,990.97
• Nasdaq advanced 15.96 points or 0.14% to 11,095.11
• Russell 2000 declined 2.75 points or -0.15% to 1,884.29

Canada Market Closings:

• TSX Composite advanced 67.13 points or 0.33% to 20,457.46
• TSX 60 advanced 4.25 points or 0.35% to 1,232.6

Brazil Market Closing:

• Bovespa advanced 2,226.46 points or 2.04% to 111,439.12

ENERGY:

The oil markets had a mixed day today:

• Crude Oil increased 1.523 USD/BBL or 1.93% to 80.335
• Brent increased 1.516 USD/BBL or 1.79% to 85.976
• Natural gas decreased 0.0428 USD/MMBtu or -1.17% to 3.6228
• Gasoline increased 0.0515 USD/GAL or 2.07% to 2.5443
• Heating oil decreased 0.0135 USD/GAL or -0.41% to 3.2603

The above data was collected around 11:53 EST on Tuesday   

• Top commodity gainers: Methanol (2.84%), Lumber (28.31%), Rubber (3.22%) and Bitumen (2.60%)
• Top commodity losers: Platinum (-2.00%), Palm Oil (-1.48%), Silver (-1.72%) and Natural Gas (-1.17%)

The above data was collected around 12:03 EST Tuesday.

BONDS:

Japan 0.505% (+0bp), US 2’s 4.19% (-0.047%), US 10’s 3.5181% (-0.56bps); US 30’s 3.63% (-0.013%), Bunds 2.096% (-9.9bp), France 2.544% (-9.4bp), Italy 3.893% (-11.8bp), Turkey 9.95% (-8bp), Greece 4.096% (-5.1bp), Portugal 2.994% (-10.1bp); Spain 3.067% (-9.6bp) and UK Gilts 3.33% (-5.6bp).   

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