Market Talk – February 22, 2023

ASIA:

South Korea’s producer value inflation slowed for a seventh straight month to its lowest in 22 months, central financial institution knowledge confirmed on Thursday. The producer value index rose 5.1% in January from a yr earlier, whereas it had climbed 5.8% in December, in response to the Financial institution of Korea. It was the slowest annual rise since March 2021. The annual fee continued its slowing pattern for a seventh straight month, after hitting a close to 14-year excessive of 10.0% in June 2022. The index rose 0.4% over a month, nevertheless, after two straight months of declines, pushed principally by greater utility prices.

The foremost Asian inventory markets had a unfavourable day at present:

• NIKKEI 225 decreased 368.78 factors or -1.34% to 27,104.32
• Shanghai decreased 15.38 factors or -0.47% to three,291.15
• Cling Seng decreased 105.65 factors or -0.51% to twenty,423.84
• ASX 200 decreased 21.80 factors or -0.30% to 7,314.50
• Kospi decreased 41.28 factors or -1.68% to 2,417.68
• SENSEX decreased 927.74 factors or -1.53% to 59,744.98
• Nifty50 decreased 272.40 factors or -1.53% to 17,554.30

The foremost Asian foreign money markets had a combined day at present:

• AUDUSD decreased 0.00282 or -0.41% to 0.68238
• NZDUSD elevated 0.00218 or 0.35% to 0.62338
• USDJPY decreased 0.287 or -0.21% to 134.703
• USDCNY elevated 0.00965 or 0.14% to six.90135

Treasured Metals:

• Gold decreased 1.51 USD/t oz. or -0.08% to 1,832.81
• Silver decreased 0.19 USD/t. ouncesor -0.87% to 21.637

Some financial information from final night time:

Australia:

Building Work Executed (QoQ) (This fall) decreased from 2.2% to -0.4%

Wage Value Index (QoQ) (This fall) decreased from 1.0% to 0.8%

New Zealand:

RBNZ Curiosity Price Choice elevated from 4.25% to 4.75%

Commerce Steadiness (MoM) (Jan) decreased from -636M to -1,954M

Commerce Steadiness (YoY) (Jan) decreased from -14,630M to -15,480M

Some financial information from at present:

India:

M3 Cash Provide decreased from 9.8% to 9.5%

Hong Kong:

GDP (QoQ) (This fall) elevated from -2.6% to 0.0%

GDP (YoY) (This fall) stay the identical at -4.2%

EUROPE/EMEA:

The post-pandemic rebound in world progress and inflation final yr meant the quantity of debt sloshing across the international financial system noticed its first annual fall in greenback phrases since 2015, a broadly tracked examine has proven. The Institute of Worldwide Finance report printed on Wednesday estimated that the nominal worth of worldwide debt declined by some $4 trillion, bringing it fractionally again below the $300 trillion threshold breached in 2021. In distinction, the quantity of creating world debt hit a brand new document excessive of $98 trillion with Russia, Singapore, India, Mexico, and Vietnam seeing the biggest particular person rises. Stronger financial exercise and better inflation in the meantime, each of which erode debt ranges, noticed the worldwide debt-to-GDP ratio drop over 12 proportion factors to 338% of GDP, marking the second annual drop in a row.

The foremost Europe inventory markets had a combined day:

• CAC 40 decreased 9.39 factors or -0.13% to 7,299.26
• FTSE 100 decreased 47.12 factors or -0.59% to 7,930.63
• DAX 30 elevated 2.27 factors or 0.01% to fifteen,399.89

The foremost Europe foreign money markets had a combined day at present:

• EURUSD decreased 0.0021 or -0.20% to 1.06250
• GBPUSD decreased 0.00439 or -0.36% to 1.20711
• USDCHF elevated 0.00206 or 0.22% to 0.92976

Some financial information from Europe at present:

Germany:

German CPI (MoM) (Feb) elevated from -0.8% to 1.0%

German CPI (YoY) (Feb) elevated from 8.1% to eight.7%

German Enterprise Expectations (Feb) elevated from 86.4 to 88.5

German Present Evaluation (Feb) decreased from 94.1 to 93.9

German Ifo Enterprise Local weather Index (Feb) elevated from 90.1 to 91.1

Italy:

Italian CPI (MoM) (Jan) decreased from 0.3% to 0.1%

US/AMERICAS:

Inflation stays the first concern for the Federal Reserve as indicated within the minutes stories launched this Wednesday. The central financial institution solely accepted a 25 bps hike on the final assembly, marking the least important hike since March of final yr. Nevertheless, a couple of members felt a 50 bps hike would have been acceptable as inflation stays “properly above” the two% goal.  “Individuals famous that inflation knowledge acquired over the previous three months confirmed a welcome discount within the month-to-month tempo of value will increase however confused that considerably extra proof of progress throughout a broader vary of costs can be required to be assured that inflation was on a sustained downward path,” the minutes mentioned. The tight labor market additionally stays problematic, and worldwide conflicts add to financial uncertainty. Officers indicated that additional hikes are virtually assured within the close to time period.

US Market Closings:

• Dow declined 84.5 factors or -0.26% to 33,045.09
• S&P 500 declined 6.29 factors or -0.16% to three,991.05
• Nasdaq superior 14.77 factors or 0.13% to 11,507.07
• Russell 2000 superior 6.46 factors or 0.34% to 1,894.67

Canada Market Closings:

• TSX Composite declined 59.31 factors or -0.29% to twenty,193.33
• TSX 60 declined 4.58 factors or -0.37% to 1,217.17

Brazil Market Closing:

• Bovespa declined 2,024.87 factors or -1.85% to 107,152.05

ENERGY:

The oil markets had a combined day at present:

• Crude Oil decreased 2.101 USD/BBL or -2.75% to 74.259
• Brent decreased 2.151 USD/BBL or -2.59% to 80.899
• Pure fuel elevated 0.1717 USD/MMBtu or 8.28% to 2.2447
• Gasoline decreased 0.0845 USD/GAL or -3.50% to 2.3311
• Heating oil decreased 0.0547 USD/GAL or -1.96% to 2.7372

The above knowledge was collected round 13:50 EST on Wednesday

• Prime commodity gainers: Espresso (2.16%), HRC Metal (5.66%), Pure Fuel (8.28%) and Orange Juice (2.29%)
• Prime commodity losers: Gasoline (-3.50%), Lean Hogs (-2.84%), Crude Oil (-2.75%) and Brent (-2.59%)

The above knowledge was collected round 14:00 EST Wednesday.

BONDS:

Japan 0.504% (-0.1bp), US 2’s 4.69% (-0.046%), US 10’s 3.9020% (-5.1bps); US 30’s 3.92% (-0.055%), Bunds 2.519% (-1.9bp), France 3.000% (-1.6bp), Italy 4.474% (+0.8bp), Turkey 10.30% (+10bp), Greece 4.488% (+3.9bp), Portugal 3.446% (+0.3bp); Spain 3.586% (-1.7bp) and UK Gilts 3.602% (-1.4bp).