Market Talk – December 16, 2022

ASIA:

Uncertainty going through the worldwide economic system subsequent yr will exacerbate challenges at residence for China, economists in Beijing say, whereas urging swift help to assist counter exterior headwinds. As the chance of world recession looms, China ought to keep alert to turbulence in worldwide markets and the potential of one other monetary disaster, stated former vice-finance minister Zhu Guangyao at a discussion board organized by internet portal Sina on Wednesday. Zhu predicted fee hikes amongst developed international locations is not going to cease till mid-2023, highlighting the necessity for worldwide macroeconomic coverage coordination.

India’s central financial institution, The Reserve Financial institution will challenge two tranches of Sovereign Gold Bonds, which can open for public subscription in December and March. Sovereign Gold Bonds (SGBs) 2022-23-Sequence III will open for subscription in the course of the December 19-December 23 interval and the 2022-23-Sequence IV throughout March 06-10, 2023, the Finance Ministry stated in an announcement on Thursday. These bonds are issued by the Reserve Financial institution of India (RBI) on behalf of the federal government. The utmost restrict of subscription is 4 kg for particular person, 4 kg for HUF and 20 kg for trusts and related entities per fiscal yr. The bonds can be utilized as collateral for loans.

 

 

The foremost Asian inventory markets had a blended day at this time:

• NIKKEI 225 decreased 524.58 factors or -1.87% to 27,527.12
• Shanghai decreased 0.79 factors or -0.02% to three,167.86
• Hold Seng elevated 82.08 factors or 0.42% to 19,450.67
• ASX 200 decreased 56.10 factors or -0.78% to 7,148.70
• Kospi decreased 0.95 factors or -0.04% to 2,360.02
• SENSEX decreased 461.22 factors or -0.75% to 61,337.81
• Nifty50 decreased 145.90 factors or -0.79% to 18,269.00

 

 

The foremost Asian foreign money markets had a blended day at this time:

• AUDUSD decreased 0.00110 or -0.16% to 0.66901
• NZDUSD elevated 0.00250 or 0.39% to 0.63687
• USDJPY decreased 1.206 or -0.88% to 136.554
• USDCNY decreased 0.00880 or -0.13% to six.98128

 

Valuable Metals:

• Gold elevated 13.61 USD/t oz. or 0.77% to 1,790.27
• Silver elevated 0.066 USD/t. ozor 0.29% to 23.116

 

Some financial information from final evening:

Japan:

Companies PMI elevated from 50.3 to 51.7

New Zealand:

Enterprise NZ PMI (Nov) decreased from 49.3 to 47.4

 

Some financial information from at this time:

India:

Financial institution Mortgage Progress elevated from 17.2% to 17.5%

Deposit Progress elevated from 9.6% to 9.9%

FX Reserves, USD elevated from 561.16B to 564.07B

Hong Kong:

Unemployment Price (Nov) decreased from 3.8% to three.7%

 

 

EUROPE/EMEA:

 

U.Ok. inflation got here in barely under expectations at 10.7% in November, as cooling gasoline costs helped ease worth pressures, although excessive meals and vitality costs continued to squeeze households and companies. Economists polled by Reuters had projected an annual enhance within the client worth index of 10.9% in November, after October noticed an surprising climb to a 41-year excessive of 11.1%. On a month-to-month foundation, the November enhance was 0.4%, down from 2% in October and under a consensus estimate of 0.6%. The Financial institution of England will announce its subsequent financial coverage transfer on Thursday. It’s extensively anticipated to boost rates of interest by 50 foundation factors, because it juggles sky-high inflation and an economic system that policymakers say is already in its longest recession on report.

 

The foremost Europe inventory markets had a adverse day:

 

• CAC 40 decreased 70.14 factors or -1.08% to six,452.63
• FTSE 100 decreased 94.05 factors or -1.27% to 7,332.12
• DAX 30 decreased 93.16 factors or -0.67% to 13,893.07

 

The foremost Europe foreign money markets had a blended day at this time:

• EURUSD decreased 0.00124 or -0.12% to 1.06136
• GBPUSD decreased 0.00015 or -0.01% to 1.21745
• USDCHF elevated 0.00407 or 0.44% to 0.93217

 

Some financial information from Europe at this time:

UK:

Core Retail Gross sales (YoY) (Nov) elevated from -6.4% to -5.9%

Core Retail Gross sales (MoM) (Nov) decreased from 0.7% to -0.3%

Retail Gross sales (YoY) (Nov) stay the identical at -5.9%

Retail Gross sales (MoM) (Nov) decreased from 0.9% to -0.4%

Composite PMI elevated from 48.2 to 49.0

Manufacturing PMI decreased from 46.5 to 44.7

Companies PMI elevated from 48.8 to 50.0

France:

French Manufacturing PMI (Dec) elevated from 48.3 to 48.9

French Companies PMI (Dec) decreased from 49.3 to 48.1

Germany:

German Manufacturing PMI (Dec) elevated from 46.2 to 47.4

German Companies PMI (Dec) elevated from 46.1 to 49.0

Italy:

Italian CPI (MoM) (Nov) stay the identical at 0.5%

Euro Zone:

Manufacturing PMI (Dec) elevated from 47.1 to 47.8

S&P International Composite PMI (Dec) elevated from 47.8 to 48.8

Companies PMI (Dec) elevated from 48.5 to 49.1

Core CPI (YoY) (Nov) reman the identical at 5.0%

CPI (YoY) (Nov) decreased from 10.6% to 10.1%

CPI (MoM) (Nov) decreased from 1.5% to -0.1%

Commerce Steadiness (Oct) elevated from -34.5B to -26.5B

 

US/AMERICAS:

 

The Dow continued its decline this Friday after falling over 280 factors after a 764-point drop on Thursday. The week started on an optimistic be aware with a promising CPI studying. Recession fears resurfaced after the Federal Reserve famous they’d not again down on their hawkish stance and raised charges by one other 50 bps. Thursday’s weekly unemployment report means that the US labor market stays tight – a prime concern for the Fed.

 

Christopher Harvey of Wells Fargo is predicting that jobs studies will change into the brand new commonplace on which to gauge the falling inflation. Wage inflation has persevered regardless of a slight downturn in different areas. “Because of this, we consider CPI may take a backseat to jobs studies in 2023 because the marginal driver of Fed hawkishness,” Harvey acknowledged. “On this case setting, dangerous information is ‘good’ information – however how lengthy will it take earlier than we get the dangerous information, and the way properly will the market maintain up whereas it waits?,” he added.

 

 

US Market Closings:

• Dow declined 281.76 factors or -0.85% to 32,920.46
• S&P 500 declined 43.39 factors or -1.11% to three,852.36
• Nasdaq declined 105.11 factors or -0.97% to 10,705.41
• Russell 2000 declined 11.19 factors or -0.63% to 1,763.42

 

Canada Market Closings:

• TSX Composite declined 157.35 factors or -0.8% to 19,443.28
• TSX 60 declined 10.33 factors or -0.87% to 1,172.7

 

Brazil Market Closing:

• Bovespa declined 881.99 factors or -0.85% to 102,855.7

 

 

ENERGY:

 

The oil markets had a adverse day at this time:

 

• Crude Oil decreased 1.436 USD/BBL or -1.89% to 74.674
• Brent decreased 2 USD/BBL or -2.46% to 79.210
• Pure gasoline decreased 0.4132 USD/MMBtu or -5.93% to six.5568
• Gasoline decreased 0.0343 USD/GAL or -1.58% to 2.1325
• Heating oil decreased 0.1122 USD/GAL or -3.42% to three.1712

 

The above information was collected round 12:15 EST on Friday

 

• Prime commodity gainers: Palm Oil (1.03%), Lean Hogs (5.68%), Potatoes (2.21%) and Bitumen (1.15%)
• Prime commodity losers: Palladium (-3.73%), Lumber (-3.49%), Pure Gasoline (-5.93%) and Heating Oil (-3.42%)

 

The above information was collected round 12:21 EST Friday.

 

 

BONDS:

 

Japan 0.265%(+1bp), US 2’s 4.21% (-0.041%), US 10’s 3.4804% (+3.04bps); US 30’s 3.53% (+0.036%), Bunds 2.151% (+6.8bp), France 2.67% (+9bp), Italy 4.293% (+13.9bp), Turkey 10.48% (-22bp), Greece 4.317% (+17.3bp), Portugal 3.174% (+8.6bp); Spain 3.253% (+10.2bp) and UK Gilts 3.327% (+8.2bp).