Market Talk - Tuesday, Jan. 24

ASIA:

India is likely to peg its nominal gross domestic product (GDP) growth at around 11% in the annual budget next week, marking a slowdown from its estimate for the current fiscal year due to the prospect of weak exports, two government officials said. Nominal GDP growth — which includes inflation and is the benchmark used to estimate tax collections — could be pressured by suppressed external demand next year due to a likely U.S. recession, said the sources, who declined to be named as discussions are not yet public. India’s CAD was 4.4% of GDP in the July-September quarter, higher than 2.2% a quarter ago and 1.3% a year ago, as rising commodity prices and a weak rupee increased the trade gap.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 393.15 points or 1.46% to 27,299.19
  • Shanghai closed
  • Hang Seng closed
  • ASX 200 increased 33.10 points or 0.44% to 7,490.40
  • Kospi closed
  • SENSEX increased 37.08 points or 0.06% to 60,978.75
  • Nifty50 decreased 0.25 points or 0.00% to 18,118.30

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00108 or 0.15% to 0.70388
  • NZDUSD increased 0.00129 or 0.20% to 0.64979
  • USDJPY decreased 0.57 or -0.44% to 130.090
  • USDCNY increased 0.01207 or 0.18% to 6.78727

Precious Metals:

  • Gold decreased 0.76 USD/t oz. or -0.04% to 1,930.54
  • Silver increased 0.122 USD/t. oz or 0.52% to 23.573

Some economic news from last night:

Japan:

Services PMI increased from 51.1 to 52.4

Australia:

NAB Business Confidence (Dec) increased from -4 to -1

Some economic news from today:

Japan:

BoJ Core CPI (YoY) increased from 2.9% to 3.1%

EUROPE/EMEA:

Revenue at Europe’s largest companies is expected to have risen by just 0.9% in the fourth quarter, Refinitiv I/B/E/S data showed on Tuesday, down from 27.4% in the third quarter and the slowest growth rate since the fourth quarter of 2020. The forecast, which tracks companies listed on the pan-European STOXX 600 index, represents a drop from last week when analysts expected revenue growth of 4%. The STOXX 600 is up over 6.5% so far in 2023 and on track for its best performance in the month of January since 2015.

The major Europe stock markets had a mixed day:

  • CAC 40 increased 18.46 points or 0.26% to 7,050.48
  • FTSE 100 decreased 27.31 points or -0.35% to 7,757.36
  • DAX 30 decreased 9.84 points or -0.07% to 15,093.11

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.00004 or 0.00% to 1.08676
  • GBPUSD decreased 0.00563 or -0.46% to 1.23167
  • USDCHF increased 0.00161 or 0.17% to 0.92331

Some economic news from Europe today:

Germany:

GfK German Consumer Climate (Feb) increased from -37.6 to -33.9

German Manufacturing PMI (Jan) decreased from 47.1 to 47.0

German Services PMI (Jan) increased from 49.2 to 50.4

France:

French Manufacturing PMI (Jan) increased from 49.2 to 50.8

French Services PMI (Jan) decreased from 49.5 to 49.2

UK:

Composite PMI decreased from 49.0 to 47.8

Manufacturing PMI increased from 45.3 to 46.7

Services PMI decreased from 49.9 to 48.0

CBI Industrial Trends Orders (Jan) decreased from -6 to -17

Euro Zone:

Manufacturing PMI (Jan) increased from 47.8 to 48.8

S&P Global Composite PMI (Jan) increased from 49.3 to 50.2

Services PMI (Jan) increased from 49.8 to 50.7

US/AMERICAS:

The New York Stock Exchange had a curious technical error when it opened this Tuesday morning. Numerous stocks were listed at prices that were drastically different from their prior day closings. The issue was corrected quickly, but the reason for the problem remains unknown. The NYSE released the following statement: “The exchange continues to investigate issues with today’s opening auction. In a subset of symbols, opening auctions did not occur. The exchange is working to clarify the list of symbols. Impacted member firms may consider filing for Clearly Erroneous or Rule 18 Claims.” The last time a technical error occurred was on July 8, 2015, when trading ceased for four hours due to a configuration issue.

The Department of Justice has its target set on Google for the second time regarding a potential breach of antitrust laws. Shares of Google fell during midday trading after the announcement. The DOJ claims Google is misusing data for its lucrative advertising branch which is currently dominating the online ad market. “The analogy would be if Goldman or Citibank owned the NYSE,” the executive explained. The company generated $54.5 billion in Q4 alone through its search engine, Google Network ads, and YouTube. Numerous states have joined the DOJ against Google, and there are also three separate lawsuits centering on this topic that are pending.

US Market Closings:

  • Dow advanced 104.4 points or 0.31% to 33,733.96
  • S&P 500 declined 2.86 points or -0.07% to 4,016.95
  • Nasdaq declined 30.14 points or -0.27% to 11,334.27
  • Russell 2000 declined 5.16 points or -0.27% to 1,885.61

Canada Market Closings:

  • TSX Composite declined 2.03 points or -0.01% to 20,629.55
  • TSX 60 declined 0.48 of a point or -0.04% to 1,242.39

Brazil Market Closing:

  • Bovespa advanced 1,290.87 points or 1.16% to 113,028.15

ENERGY:

The oil markets had a negative day today:

  • Crude Oil decreased 1.441 USD/BBL or -1.77% to 80.179
  • Brent decreased 1.593 USD/BBL or -1.81% to 86.597
  • Natural gas decreased 0.1498 USD/MMBtu or -4.35% to 3.2972
  • Gasoline decreased 0.0415 USD/GAL or -1.54% to 2.6550
  • Heating oil decreased 0.1115 USD/GAL or -3.14% to 3.4394

The above data was collected around 11:58 EST on Tuesday

  • Top commodity gainers: Platinum (1.11%), Wheat (1.46%), Lumber (5.52%) and Palladium (2.30%)
  • Top commodity losers: Natural Gas (-4.35%), Heating Oil (-3.14%), Brent (-1.81%) and Crude Oil (-1.77%)

The above data was collected around 12:05 EST Tuesday.

BONDS:

Japan 0.411% (+3.1bp), US 2’s 4.22% (-0.023%), US 10’s 3.4821% (-4.09bps); US 30’s 3.63% (-0.055%), Bunds 2.157% (-4.4bp), France 2.595% (-6.4bp), Italy 3.925% (-10.2bp), Turkey 9.86% (-8bp), Greece 4.27% (+7.3bp), Portugal 3.022% (-7.3bp); Spain 3.122% (-7.8bp) and UK Gilts 3.286% (-7.8bp).


More By This Author:

Market Talk - Monday, Jan. 23
Market Talk - Friday, Jan. 20
Market Talk - Wednesday, Jan. 18

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.