Market Talk – March 6, 2023

ASIA:

Retail gross sales of automobiles in India jumped 16% to round 1.8 million items in February, helped partly by robust demand throughout the marriage ceremony season, an trade physique of vehicle sellers mentioned on Monday, including that festivals may push the gross sales increased in March. Gross sales have picked up within the final two months as chip shortages eased and automakers launched new fashions to faucet into the demand forward of the pageant and marriage ceremony seasons. Nevertheless, rising rates of interest amid elevated inflation are seen as a sentiment dampener, with total gross sales in February nonetheless under pre-Covid ranges. Gross sales of two-wheelers superior 15%, whereas these of three-wheelers jumped 81%, passenger automobiles 11%, tractors 14%, and business automobiles 17%, the Federation of Vehicle Sellers Associations (FADA) mentioned in an announcement. Auto gross sales numbers are keenly watched, as they’re one of many key indicators to evaluate personal consumption and carry greater than 50% weightage in calculating the nation’s financial progress.

The most important Asian inventory markets had a blended day as we speak:

• NIKKEI 225 elevated 310.31 factors or 1.11% to twenty-eight,237.78
• Shanghai decreased 6.37 factors or -0.19% to three,322.03
• Cling Seng elevated 35.65 factors or 0.17% to twenty,603.19
• ASX 200 elevated 45.00 factors or 0.62% to 7,328.60
• Kospi elevated 30.55 factors or 1.20% to 2,462.62
• SENSEX elevated 415.49 factors or 0.69% to 60,224.46
• Nifty50 elevated 117.10 factors or 0.67% to 17,711.45

The most important Asian forex markets had a blended day as we speak:

• AUDUSD decreased 0.00322 or -0.48% to 0.67358
• NZDUSD decreased 0.00327 or -0.53% to 0.61893
• USDJPY elevated 0.037 or 0.03% to 135.897
• USDCNY elevated 0.04454 or 0.65% to six.94074

Treasured Metals:

• Gold decreased 4.26 USD/t oz. or -0.23% to 1,850.71
• Silver decreased 0.086 USD/t. ouncesor -0.40% to 21.155

Some financial information from final evening:

South Korea:

CPI (YoY) (Feb) decreased from 5.2% to 4.8%

EUROPE/EMEA:

British building exercise grew at its quickest tempo in 9 months in February after two months of declines, as a rebound in business work and civil engineering helped offset a continued fall in housebuilding, a survey confirmed on Monday. The S&P International/CIPS UK Buying Managers’ Index (PMI) for the development sector jumped to 54.6 in February, up from 48.4 in January, its highest since Could 2022 and nicely above economists’ common expectation of 49.1 in a Reuters ballot. Britain’s housing market has slowed in current months, damage by a dent in demand for brand new properties as increased borrowing prices and a surge in the price of dwelling deterred potential consumers. Mortgage lender Nationwide reported final week that home costs in February had been 1.1% down on a 12 months earlier – the largest annual fall since 2012 – and had fallen 3.7% since their peak in August 2022.

The most important Europe inventory markets had a blended day:

• CAC 40 elevated 25.09 factors or 0.34% to 7,373.21
• FTSE 100 decreased 17.32 factors or -0.22% to 7,929.79
• DAX 30 elevated 75.19 factors or 0.48% to fifteen,653.58

The most important Europe forex markets had a blended day as we speak:

• EURUSD elevated 0.00506 or 0.48% to 1.06826
• GBPUSD decreased 0.00047 or -0.04% to 1.20353
• USDCHF decreased 0.00376 or -0.40% to 0.93204

Some financial information from Europe as we speak:

Swiss:

CPI (MoM) (Feb) elevated from 0.6% to 0.7%

Euro Zone:

Retail Gross sales (MoM) (Jan) elevated from -1.6% to 0.3%

UK:

Building PMI (Feb) elevated from 48.4 to 54.6

US/AMERICAS:

Federal Reserve Chairman Jerome Powell is about to deal with Congress this week. Lawmakers need to hear that the central financial institution is dedicated to waning inflation, albeit in a approach that forestalls a tough touchdown. Powell will tackle the Senate Banking Committee on Tuesday, adopted by the Home Monetary Providers Committee on Wednesday. In the meantime, the markets are pricing in a 50 bps price hike for March. The Cleveland Fed’s tracker predicts inflation will fall to five.4% in March in comparison with February’s 6.2% studying. Nevertheless, the identical index expects core inflation to extend from 5.5% to five.7%.

US Market Closings:

• Dow superior 40.08 factors or 0.12% to 33,431.05
• S&P 500 superior 2.75 factors or 0.07% to 4,048.39
• Nasdaq declined 13.27 factors or -0.11% to 11,675.74
• Russell 2000 declined 28.51 factors or -1.48% to 1,899.76

Canada Market Closings:

• TSX Composite declined 66.78 factors or -0.32% to twenty,514.8
• TSX 60 declined 3.49 factors or -0.28% to 1,234.73

Brazil Market Closing:

• Bovespa superior 834.33 factors or 0.8% to 104,700.32

ENERGY:

The oil markets had a blended day as we speak:

• Crude Oil elevated 0.273 USD/BBL or 0.34% to 79.953
• Brent elevated 0.061 USD/BBL or 0.07% to 85.891
• Pure fuel decreased 0.4148 USD/MMBtu or -13.79% to 2.5942
• Gasoline elevated 0.0089 USD/GAL or 0.32% to 2.7593
• Heating oil decreased 0.0651 USD/GAL or -2.23% to 2.8480

The above information was collected round 11:27 EST on Monday              

• Prime commodity gainers: HRC Metal (4.37%), Soybeans (0.98%), Rhodium (2.54%) and Feeder Cattle (1.34%)
• Prime commodity losers: Oat (-8.72%), Palm Oil (-1.59%), Pure Gasoline (-13.79%) and Heating Oil (-2.23%)

The above information was collected round 11:32 EST Monday.

BONDS:

Japan 0.504% (+0bp), US 2’s 4.88% (+0.015%), US 10’s 3.9616% (-0.14bps); US 30’s 3.89% (+0.002%), Bunds 2.728% (+1.4bp), France 3.223% (+1.8bp), Italy 4.55% (+1.2bp), Turkey 11.62% (+40bp), Greece 4.502% (+2.1bp), Portugal 3.613% (+2.1bp); Spain 3.751% (+1bp) and UK Gilts 3.848% (-0.7bp).