Market Talk – February 17, 2023

Because of the NYSE closing for Presidents’ Day, Market Speak will resume on Tuesday, Feb. 21.

ASIA:

Singapore’s economic system grew barely lower than initially estimated within the fourth quarter from a yr in the past, official knowledge confirmed on Monday, and the federal government stored its forecast for annual development to return in at 0.5% – 2.5% this yr. Gross home product (GDP) grew 2.1% year-on-year within the fourth quarter, the Ministry of Commerce and Business (MTI) stated, barely decrease than the two.2% development within the authorities’s advance estimate resulting from barely weaker development and repair sector development. Analysts stated that some companies industries would fare higher this yr amid China’s reopening, whereas manufacturing, particularly electronics, is prone to weigh on development within the short-term. Since April final yr, Singapore had lifted most of its COVID-19 restrictions with many worldwide occasions returning to the city-state, attracting vacationers and companies. The remaining restrictions will likely be relaxed from Monday. The Asian monetary hub is anticipating tourism to get well to pre-pandemic ranges by 2024.

The key Asian inventory markets had a adverse day right now:

• NIKKEI 225 decreased 183.31 factors or -0.66% to 27,513.13
• Shanghai decreased 25.01 factors or -0.77% to three,224.02
• Cling Seng decreased 267.86 factors or -1.28% to twenty,719.81
• ASX 200 decreased 63.50 factors or -0.86% to 7,346.80
• Kospi decreased 24.27 factors or -0.98% to 2,451.21
• SENSEX decreased 316.94 factors or -0.52% to 61,002.57
• Nifty50 decreased 91.65 factors or -0.51% to 17,944.20

The key Asian foreign money markets had a blended day right now:

• AUDUSD decreased 0.00079 or -0.11% to 0.68681
• NZDUSD decreased 0.00154 or -0.25% to 0.62386
• USDJPY elevated 0.269 or 0.20% to 134.209
• USDCNY elevated 0.00653 or 0.10% to six.87453

Valuable Metals:

• Gold elevated 3.21 USD/t oz. or 0.17% to 1,840.65
• Silver elevated 0.113 USD/t. ouncesor 0.52% to 21.713

No financial information from final evening:

Some financial information from right now:

India:

FX Reserves, USD decreased from 575.27B to 566.95B

EUROPE/EMEA:

Russia’s central financial institution stated on Friday that inflationary pressures throughout the economic system had remained sturdy through the first two weeks of February, citing a droop within the rouble as an element. Russia recorded inflation of 11.8% on an annual foundation in January, nearly 3 times the central financial institution’s official 4% goal. It signaled final week it was making ready to lift base rates of interest to chill inflation. The rouble has fallen 16% for the reason that begin of December when a European Union embargo and G7 worth cap on Russian crude gross sales got here into power.

The key Europe inventory markets had a adverse day:

• CAC 40 decreased 18.44 factors or -0.25% to 7,347.72
• FTSE 100 decreased 8.17 factors or -0.10% to eight,004.36
• DAX 30 decreased 51.64 factors or -0.33% to fifteen,482.00

The key Europe foreign money markets had a inexperienced day right now:

• EURUSD elevated 0.00109 or 0.10% to 1.06789
• GBPUSD elevated 0.00263 or 0.22% to 1.20193
• USDCHF elevated 0.00131 or 0.14% to 0.92651

Some financial information from Europe right now:

UK:

Core Retail Gross sales (MoM) (Jan) elevated from -1.4% to 0.4%

Core Retail Gross sales (YoY) (Jan) elevated from -6.5% to -5.3%

Retail Gross sales (YoY) (Jan) elevated from -6.1% to -5.1%

Retail Gross sales (MoM) (Jan) elevated from -1.2% to 0.5%

Germany:

German PPI (MoM) (Jan) decreased from -0.4% to -1.0%

France:

French CPI (MoM) (Jan) elevated from -0.1% to 0.4%

French HICP (MoM) (Jan) stay the identical at 0.4%

US/AMERICAS:

The US economic system is recovering, however has an extended strategy to go, in accordance with Federal Reserve Governor Michelle Bowman. “I believe there’s an extended strategy to go earlier than we attain our 2% inflation goal and I believe we’ll must proceed to lift the federal funds fee till we see much more progress on that,” she stated this Friday. Her remarks sooner or later after Cleveland Fed President Loretta Mester optimistically acknowledged that worth stability will enhance in a significant method by the top of the yr, with the two% goal being achieved by 2025. But varied reviews launched this week point out that inflation has not improved in a significant method.

The Convention Board’s Main Financial Index initiatives that the US is heading right into a recession. The index reported a 0.3% decline, which was in keeping with expectations. The index believes that situations will deteriorate by 3.6% over the following six months. The Convention Board believes greater costs and charges mixed with decrease shopper spending will tilt the economic system right into a recession.

US Market Closings:

• Dow superior 129.97 factors or 0.39% to 33,826.82
• S&P 500 declined 11.25 factors or -0.28% to 4,079.16
• Nasdaq declined 68.56 factors or -0.58% to 11,787.27
• Russell 2000 superior 4.14 factors o 0.21% to 1,946.36

Canada Market Closings:

• TSX Composite declined 91.18 factors or -0.44% to twenty,515.24
• TSX 60 declined 5.69 factors or -0.46% to 1,235.92

Brazil Market Closing:

• Bovespa declined 764.54 factors or -0.7% to 109,176.92

ENERGY:

The oil markets had a adverse day right now:

• Crude Oil decreased 2.708 USD/BBL or -3.45% to 75.782
• Brent decreased 2.612 USD/BBL or -3.07% to 82.528
• Pure gasoline decreased 0.1479 USD/MMBtu or -6.19% to 2.2411
• Gasoline decreased 0.0642 USD/GAL or -2.64% to 2.3713
• Heating oil decreased 0.1253 USD/GAL or -4.46% to 2.6855

The above knowledge was collected round 12:53 EST on Friday

• Prime commodity gainers: Metal (1.91%), Orange Juice (2.07%), Espresso (4.45%), and Zinc (1.85%)
• Prime commodity losers: Rhodium (-3.31%), Heating Oil (-4.46%), Pure Gasoline (-6.19%), and Crude Oil (-3.45%)

The above knowledge was collected round 13:12 EST on Friday

BONDS:

Japan 0.504%(+0.4bp), US 2’s 4.64% (+0.019%), US 10’s 3.8379%(-0.51bps); US 30’s 3.89% (-0.009%), Bunds 2.437% (-4.6bp), France 2.893% (-4.3bp), Italy 4.274% (-5bp), Turkey 10.50% (-19bp), Greece 4.33% (+1.7bp), Portugal 3.349% (-3.3bp); Spain 3.486% (-3.4bp) and UK Gilts 3.509% (+0.7bp).