Market Talk – November 3, 2022

ASIA:

China’s determination to take care of Covid controls is pushing firms to look to factories exterior the nation, in accordance with The Economist Intelligence Unit. Beijing’s stringent Covid controls helped the nation resume work whereas the remainder of the world nonetheless struggled with the pandemic in 2020. Whereas different international locations have relaxed most restrictions and chosen to “stay with Covid,” Beijing has elevated virus testing necessities and broad controls since Shanghai was locked down for 2 months earlier this 12 months.

The most important Asian inventory markets had a unfavorable day at present:

• NIKKEI 225 closed
• Shanghai decreased 5.56 factors or -0.19% to 2,997.81
• Cling Seng decreased 487.68 factors or -3.08% to fifteen,339.49
• Kospi decreased 7.70 factors or -0.33% to 2,329.17
• ASX 200 decreased 128.80 factors or -1.84% to six,857.90
• SENSEX decreased 69.68 factors or -0.11% to 60,836.41
• Nifty50 decreased 30.15 factors or -0.17% to 18,052.70

The most important Asian forex markets had a blended day at present:

• AUDUSD decreased 0.00398 or -0.63% to 0.62939
• NZDUSD decreased 0.00416 or -0.71% to 0.57774
• USDJPY elevated 0.271 or 0.18% to 148.162
• USDCNY decreased 0.0081 or -0.11% to 7.33640

Treasured Metals:

• Gold decreased 8.59 USD/t oz. or -0.53% to 1,626.30
• Silver elevated 0.049 USD/t. ouncesor 0.25% to 19.329

Some financial information from final night time:

China:

Caixin Companies PMI (Oct) decreased from 49.3 to 48.4

Hong Kong:

Manufacturing PMI (Oct) elevated from 48.0 to 49.3

Curiosity Charge Resolution (MoM) elevated from 3.50% to 4.25%

Australia:

Commerce Stability (Sep) elevated from 8.664B to 12.444B

Some financial information from at present:

India:

Nikkei Companies PMI (Oct) elevated from 54.3 to 55.1

M3 Cash Provide stay the identical at 9.1%

EUROPE/EMEA:

Inflation hit a brand new file within the 19 international locations that use the euro forex, fuelled by out-of-control costs for pure fuel and electrical energy because of Russia’s battle in Ukraine. Financial progress additionally slowed forward of what economists worry is a looming recession, largely on account of these larger costs sapping Europeans’ capacity to spend. Annual inflation reached 10.7 p.c in October, the European Union’s statistics company, Eurostat, reported on Monday. That’s up from 9.9 p.c in September, and the very best since statistics started to be compiled for the eurozone in 1997. Client spending energy has been drained at outlets and elsewhere as extra earnings goes to pay for gas and utility payments and as fundamentals equivalent to meals change into costlier. Pure fuel costs for short-term purchases have eased not too long ago however stay excessive on markets for coming months, suggesting that expensive vitality could also be a persistent drag on the economic system.

The most important Europe inventory markets had a blended day:

• CAC 40 decreased 33.60 factors or -0.54% to six,243.28
• FTSE 100 elevated 44.49 factors or 0.62% to 7,188.63
• DAX 30 decreased 126.55 factors or -0.95% to 13,130.19

The most important Europe forex markets had a blended day at present:

• EURUSD decreased 0.00516 or -0.53% to 0.97612
• GBPUSD decreased 0.01894 or -1.66% to 1.11893
• USDCHF elevated 0.01003 or 1.00% to 1.01283

Some financial information from Europe at present:

Swiss:

CPI (YoY) (Oct) decreased from 3.3% to three.0%

CPI (MoM) (Oct) elevated from -0.2% to 0.1%

Spain:

Spanish Unemployment Change decreased from 17.7K to -27.0K

Italy:

Italian Month-to-month Unemployment Charge (Sep) stay the identical at 7.9%

UK:

Composite PMI (Oct) decreased from 49.1 to 48.2

Companies PMI (Oct) decreased from 50.0 to 48.8

BoE Curiosity Charge Resolution (Nov) elevated from 2.25% to three.00%

Euro Zone:

Unemployment Charge (Sep) decreased from 6.7% to six.6%

US/AMERICAS:

Non-public payrolls within the US elevated by 239,000 in October, in accordance with the ADP. Wages rose 7.7% on an annual foundation, declining 0.1% from the month prior. The hospitality sector noticed nearly all of positive factors after including 210,000 positions, marking an 11.2% acceleration. Commerce, transportation and utilities noticed a notable achieve of 84,000 as properly. Manufacturing declined by 20,0000 positions, with the goods-producing sector shedding 8,000 jobs. Building fell by 17,000, skilled providers by 14,000, and monetary providers by 10,000. The nonfarm payroll report shall be launched by the Bureau of Labor Statistics tomorrow and supplies a extra detailed overview of the US labor drive.

US Market Closings:

• Dow declined 146.51 factors or -0.46% to 32,001.25
• S&P 500 declined 39.82 factors or -1.06% to three,719.87
• Nasdaq declined 181.86 factors or -1.73% to 10,342.94
• Russell 2000 declined 9.41 factors or -0.53% to 1,779.73

Canada Market Closings:

• TSX Composite declined 35.79 factors or -0.19% to 19,241.22
• TSX 60 declined 2.29 factors or -0.2% to 1,166.99

Brazil Market Closing:

• Bovespa declined 32.3 factors or -0.03% to 116,896.36

ENERGY:

The oil markets had a blended day at present:

• Crude Oil decreased 1.258 USD/BBL or -1.40% to 88.742
• Brent decreased 0.723 USD/BBL or -0.75% to 95.438
• Pure fuel decreased 0.2311 USD/MMBtu or -3.69% to six.0369
• Gasoline decreased 0.0065 USD/GAL or -0.24% to 2.6907
• Heating oil elevated 0.1359 USD/GAL or 3.70% to three.8133

The above information was collected round 12:13 EST on Thursday

• Prime commodity gainers: Heating Oil (3.70%), Methanol (1.47%), Bitumen (0.85%) and Cotton (3.47%)
• Prime commodity losers: Palladium (-2.84%), Coal (-1.94%), Espresso (-6.48%) and Pure Gasoline (-3.69%)

The above information was collected round 12:20 EST on Thursday.

BONDS:

Japan 0.250%(+0bp), US 2’s 4.70% (+0.133%), US 10’s 4.1511% (+9.01bps); US 30’s 4.17% (+0.045%), Bunds 2.251% (+11.6bp), France 2.784% (+11.2bp), Italy 4.424% (+13.6bp), Turkey 11.25% (+0p), Greece 4.677% (+10.5bp), Portugal 3.246% (+8.9bp); Spain 3.328% (+6.8bp) and UK Gilts 3.498% (+9.9bp).