Market Talk - Wednesday, Nov. 16


China’s interbank market self-regulatory body said on Tuesday it would expand bond financing for private firms, including property developers, with the support of the central bank. The National Association of Institutional Financial Market Investors (NAFMII) said on Tuesday that the scheme is expected to support about 250 billion yuan ($34.47 billion) in bond financing by private firms and will be expanded further if needed.

Japan looks set to experience a prolonged period of low growth and a weak yen, as the US Federal Reserve (Fed) is expected to continue raising interest rates, likely slowly but to higher levels, among the major central banks in its aggressive monetary tightening. than previously thought. A massive economic stimulus package with total fiscal spending of 39 trillion yen unveiled last month is widely expected to boost the economy at a time when higher energy, raw material and food prices threaten to derail the recovery from the COVID-19 pandemic, although Many economists are skeptical that this will boost the world’s third largest economy.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 38.13 points or 0.14% to 28,028.30
  • Shanghai decreased 14.10 points or -0.45% to 3,119.98
  • Hang Seng decreased 86.64 points or -0.47% to 18,256.48
  • Kospi decreased 2.88 points or -0.12% to 2,477.45
  • ASX 200 decreased 19.40 points or -0.27% to 7,122.20
  • SENSEX increased 107.73 points or 0.17% to 61,980.72
  • Nifty50 increased 6.25 points or 0.03% to 18,409.65

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.00246 or -0.36% to 0.67384
  • NZDUSD decreased 0.0004 or -0.06% to 0.61530
  • USDJPY increased 0.469 or 0.34% to 139.488
  • USDCNY increased 0.0511 or 0.73% to 7.09710

Precious Metals:

  • Gold decreased 3.16 USD/t oz. or -0.18% to 1,775.09
  • Silver decreased 0.037 USD/t. oz or -0.17% to 21.501

Some economic news from last night:


House Prices (YoY) (Oct) decreased from -1.5% to -1.6%


Tertiary Industry Activity Index (MoM) decreased from 0.7% to -0.4%


Wage Price Index (QoQ) (Q3) increased from 0.8% to 1.0%


Bank of England chief economist Huw Pill said interest rates were likely to rise further because the bank could not win a victory in its attempt to stem inflation to integrate into the economy. He added that interest rates are likely to rise further to prevent inflation leading to a spiral of higher wages and prices. UK CPI inflation returned to a 40-year high of 10.1% in September on rising food prices and is expected to rise further in October. Thanks to that compromise, the bank last week raised its interest rates by the most in 30 years, raising rates to 3%.

Senior European Central Bank policymakers said they expected interest rates to rise beyond the point at which they curb demand and dampen growth to knock down inflation, rejecting criticism from euro zone policymakers over moves to tighten monetary policy. Comments from several members of the ECB’s rate-setting board reflect the idea that it could make a “dovish pivot” and stop raising rates soon, echoing a similar message last week from the US central bank. Next month’s decision will depend on whether inflation continues to set new eurozone records after reaching 10.7 percent in October, well above the ECB’s 2 percent target.

The major Europe stock markets had a negative day:

  • CAC 40 decreased 34.44 points or -0.52% to 6,607.22
  • FTSE 100 decreased 18.25 points or -0.25% to 7,351.19
  • DAX 30 decreased 144.48 points or -1.00% to 14,234.03

The major Europe currency markets had a mixed day today:

  • EURUSD increased 0.00375 or 0.36% to 1.03850
  • GBPUSD increased 0.00249 or 0.21% to 1.18967
  • USDCHF decreased 0.00024 or -0.03% to 0.94386

Some economic news from Europe today:


CPI (MoM) (Oct) increased from 0.5% to 2.0%

CPI (YoY) (Oct) increased from 10.1% to 11.1%

Labour Productivity decreased from 0.4% to 0.2%

PPI Input (MoM) (Oct) decreased from 0.9% to 0.6%


Italian CPI (MoM) (Oct) increased from 0.3% to 3.4%


Wholesale inflation in America fell 0.2% in October, the Bureau of Labor Statistics reported. This places the annual rate at an increase of 8%. Excluding energy and food, wholesale costs advanced 0.2% compared to 0.3% the month prior, and up 5.4% for the year.

Although Brainard said on Monday that the Fed may begin to slow hikes, San Francisco Fed President Daly said that rate hikes will continue, albeit less aggressively. “Pausing is off the table right now. It’s not even part of the discussion,” Daly said this Wednesday. Daly believes the bank will raise rates by at least another percentage point and personally believes an appropriate range would be from 4.75% to 5.25%. The last four hikes were 0.75 percentage points, and although promising figures are coming in, inflation remains at 7.7%.

US Market Closings:

  • Dow declined 39.09 points or -0.12% to 33,553.83
  • S&P 500 declined 32.94 points or -0.83% to 3,958.79
  • Nasdaq declined 174.75 points or -1.54% to 11,183.66
  • Russell 2000 declined 36.04 points or -1.91% to 1,853.17

Canada Market Closings:

  • TSX Composite declined 36.82 points or 19,957.96
  • TSX 60 declined 0.45 of a points or -0.04% to 1,210.17

Brazil Market Closing:

  • Bovespa declined 2,917.95 points or -2.58% to 110,243.33


The oil markets had a negative day today:

  • Crude Oil decreased 1.529 USD/BBL or -1.76% to 85.391
  • Brent decreased 1.529 USD/BBL or -1.63% to 92.331
  • Natural gas decreased 0.1566 USD/MMBtu or -2.60% to 5.8774
  • Gasoline decreased 0.0363 USD/GAL or -1.44% to 2.4798
  • Heating oil decreased 0.0478 USD/GAL or -1.31% to 3.5935

The above data was collected around 13:02 EST on Wednesday  

  • Top commodity gainers: Steel (2.38%), Cotton (0.75%), Orange Juice (2.73%) and Cheese (0.34%)
  • Top commodity losers: Butter (-2.19%), Bitumen (-9.69%), Lumber (-4.84%) and Natural Gas (-2.60%)

The above data was collected around 13:09 EST on Wednesday.


Japan 0.250%(+0.2bp), US 2’s 4.36% (+0.002%), US 10’s 3.7176% (-8.14bps); US 30’s 3.90% (-0.086%), Bunds 1.986% (-11.2bp), France 2.464% (-14.3bp), Italy 3.926% (-13.4bp), Turkey 11.58% (+0bp), Greece 4.257% (-1.2bp), Portugal 2.99% (-8.2bp); Spain 3.031% (-11.3bp) and UK Gilts 3.152% (-13.9bp).  

More By This Author:

Market Talk - Tuesday, Nov. 15
Market Talk - Monday, Nov. 14
Market Talk - Tuesday, Nov. 8

Disclosure: None.

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