Market Talk - Tuesday, Oct. 25

ASIA:

Web3 boom is expected to add USD 1.1 trillion to the Indian economy over the next decade, supporting the investment-based momentum driven by over 450 in-house startups. A recent study from the National Association of Software and Service Companies (NASSCOM), an Indian non-governmental trade association and advocacy group, highlighted India’s position as a leading global player in the Web3 market owing to several factors spanning a large talent pool, high adoption rate and product development for international markets. Moreover, the study highlighted those investments in Indian Web3 startups mimicked crypto adoption by racking up a 37x growth over the last two years. The explosive Web3 growth in the country is further supported by an increasing talent pool, which makes India’s demand-supply gap the lowest when compared to the United States, China, and the United Kingdom. The Indian Web3 ecosystem caters to a variety of real-world applications, and roughly 60% of the local startups expanded their footprint outside India.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 275.38 points or 1.02% to 27,250.28
  • Shanghai decreased 1.27 points or -0.04% to 2,976.28
  • Hang Seng decreased 15.10 points or -0.10% to 15,165.59
  • Kospi decreased 1.09 points or -0.05% to 2,235.07
  • ASX 200 increased 19.20 points or 0.28% to 6,798.60
  • SENSEX decreased 287.70 points or -0.48% to 59,543.96
  • Nifty50 decreased 74.40 points or -0.42% to 17,656.35

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00610 or 0.97% to 0.63903
  • NZDUSD increased 0.00640 or 1.12% to 0.57568
  • USDJPY decreased 0.991 or -0.67% to 147.843
  • USDCNY decreased 0.01130 or -0.15% to 7.31419

Precious Metals:

  • Gold increased 7.75 USD/t oz. or 0.47% to 1,656.35
  • Silver increased 0.065 USD/t. oz or 0.34% to 19.325

Some economic news from last night:

South Korea:

Consumer Confidence (Oct) decreased from 91.4 to 88.8

Some economic news from today:

Japan:

BoJ Core CPI (YoY) increased from 1.9% to 2.0%

Singapore:

Core CPI (YoY) (Sep) increased from 5.1% to 5.3%

CPI (YoY) (Sep) remain the same at 7.5%

Hong Kong:

Exports (MoM) (Sep) increased from -14.3% to -9.1%

Imports (MoM) (Sep) increased from -16.3% to -7.8%

Trade Balance decreased from -13.3B to -44.9B

EUROPE/EMEA:

European shares rose on Monday on hopes the Federal Reserve could slow its pace of interest rate hikes, while investors welcomed Rishi Sunak’s victory in Britain’s prime ministerial race and looked ahead to a key rate decision from the European Central Bank. The continent-wide STOXX 600 index (. STOXX) closed 1.4% up at its highest level in nearly a week, with utilities (. SX6P), media (.SXMP) and travel and leisure (.SXTP) sectors leading the gains. A survey showed euro zone business activity contracted at the fastest pace in nearly two years in October as the cost-of-living crisis kept consumers cautious and sapped demand. Sterling pound rose on Tuesday against US dollar supported by improved risk sentiment as Rishi Sunak prepared to become Britain’s prime minister, while the euro steadied ahead of an expected rate hike by the European Central Bank (ECB) on Thursday. Sterling edged toward this month’s highs, up 0.3% to $1.13125 at 0825 GMT, but currency strategists expected the currency, down more than 16% against the dollar this year, to remain under pressure. The euro edged 0.07% lower at $0.9866 but was not far from its highest level since early October as the ECB looks set to hike rates by 75 basis points on Thursday aiming to rein in red-hot inflation.

The major Europe stock markets had a mixed day:

  • CAC 40 increased 119.19 points or 1.94% to 6,250.55
  • FTSE 100 decreased 0.51 points or -0.01% to 7,013.48
  • DAX 30 increased 121.51 points or 0.94% to 13,052.96

The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00698 or 0.71% to 0.99590
  • GBPUSD increased 0.01679 or 1.49% to 1.14735
  • USDCHF decreased 0.00404 or -0.40% to 0.99616

Some economic news from Europe today:

Germany:

German Business Expectations (Oct) increased from 75.3 to 75.6

German Current Assessment (Oct) decreased from 94.5 to 94.1

German Ifo Business Climate Index (Oct) decreased from 84.4 to 84.3

UK:

CBI Industrial Trends Orders (Oct) decreased from -2 to -4

Spain:

Spanish PPI (YoY) decreased from 42.9% to 35.6%

US/AMERICAS:

The S&P CoreLogic Case-Shiller Home Price Index discovered home prices beginning to decline across the US this August. Compared to July, home prices fell by 15.6%, marking the steepest monthly decline on record. Home prices are still inflated compared to last year by 13%. The 10-city composite rose 12.1% YoY, while the 20-city composite rose 13.1% YoY. As monthly mortgage payments are up to 75% higher in some cases compared to 2021, numerous people are priced out of the market. Those locked into low rates are less likely to list their homes, and rates are only expected to rise.

US Market Closings:

  • Dow advanced 337.12 points or 1.07% to 31,836.74
  • S&P 500 advanced 61.77 points or 1.63% to 3,859.11
  • Nasdaq advanced 246.5 points or 2.25% to 11,199.12
  • Russell 2000 advanced 47.76 points or 2.73% to 1,796.16

Canada Market Closings:

  • TSX Composite advanced 178.61 points or 0.94% to 19,097.01
  • TSX 60 advanced 9.72 points or 0.85% to 1,155.78

Brazil Market Closing:

  • Bovespa declined 1,387.11 points or -1.2% to 114,625.59

ENERGY:

The oil markets had a green day today:

  • Crude Oil increased 0.416 USD/BBL or 0.49% to 84.996
  • Brent increased 0.071 USD/BBL or 0.08% to 93.331
  • Natural gas increased 0.3772 USD/MMBtu or 7.26% to 5.5762
  • Gasoline increased 0.1014 USD/GAL or 3.71% to 2.8316
  • Heating oil increased 0.0263 USD/GAL or 0.67% to 3.9464

The above data was collected around 12:18 EST on Tuesday

  • Top commodity gainers: Natural Gas (7.26%), Cotton (3.71%), Gasoline (3.71%) and Bitumen (7.13%)
  • Top commodity losers: Coffee (-2.36%), Orange Juice (-2.27%), Oat (-3.50%) and Lumber (-2.23%)

The above data was collected around 12:28 EST on Tuesday

BONDS:

Japan 0.255%(+0bp), US 2’s 4.46% (-0.040%), US 10’s 4.0958% (-13.62bps); US 30’s 4.25% (-0.113%), Bunds 2.18% (-16.4bp), France 2.71% (-15.7bp), Italy 4.392% (-20bp), Turkey 11.31% (+39p), Greece 4.678% (-18.1bp), Portugal 3.191% (-16.6bp); Spain 3.328% (-12.1bp) and UK Gilts 3.637% (-10.3bp).


More By This Author:

Market Talk - Friday, Oct. 21
Market Talk - Thursday, Oct. 20
Market Talk - Wednesday, Oct. 19

Disclosure: None.

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