Economy · August 5, 2022

Market interview – 5 August 2022

ASIA:

China continued military exercises near Taiwan and flew drones near Japan on Friday, increasing tensions across the Strait that have threatened to simmer since Taipei welcomed US House Speaker Nancy Pelosi for a historic visit. The Taiwanese Ministry of Defense said Chinese warships and planes continued drills in the waters around the island, adding that the Chinese People’s Liberation Army (PLA) forces crossed the midline – in the middle road between the island and mainland China – in a move called “a highly provocative act.” Two Chinese drones flew over Okinawa prefecture in Japan on Thursday, prompting the country’s air defense to respond with fighter jets, according to a Tokyo Defense Ministry statement on Friday.

Major Asian equity markets had a green day today:

  • NIKKEI 225 is up 243.67 points or 0.87% to 28,175.87
  • Shanghai was up 37.99 points or 1.19% to 3,227.03
  • Hang Seng is up 27.90 points or 0.14% to 20,201.94
  • ASX 200 is up 40.70 points or 0.58% to 7,015.60
  • Kospi is up 17.69 points or 0.72% to 2,490.80
  • SENSEX was up 89.13 points or 0.15% to 58,387.93
  • Nifty50 is up 15.50 points or 0.09% to 17,397.50

The major Asian currency markets had a mixed day today:

  • AUDUSD fell by 0.00583 or -0.84% ​​to 0.69034
  • NZDUSD fell by 0.0063 or -1.00% to 0.62390
  • USDJPY is up 2.523 or 1.90% to 135.269
  • USDCNY was up 0.01743 or 0.26% to 6.76783

Precious metals:

l Gold fell by USD 18.31 / toz. or -1.02% to 1,772.77

l Silver decreased by USD 0.310 / t. oz or -1.54% at 19,841

Some economic news from last night:

Japan:

Average cash earnings (YoY) increased from 1.0% to 2.2%

Household Spending (Monthly) (June) increased from -1.9% to 1.5%

Household spending (year over year) (June) increased from -0.5% to 3.5%

Total wage income of employees (June) increased from 1.0% to 2.2%

Compensation for overtime (on an annual basis) (June) increased from 5.50% to 5.80%

Foreign reserves (USD) (July) increased from 1,311.3 billion to 1,323.0 billion

South Korea:

The current account (June) increased from 3.86 billion to 5.61 billion

Australia:

The AIG services index (July) increased from 48.8 to 51.7

Some economic news today:

India:

The Cash Reserve Ratio remains the same at 4.50%

Interest rate decision increased from 4.90% to 5.40%

Reverse REPO rate remains the same at 3.35%

FX reserves, USD increased from 571.56 billion to 573.88 billion

Japan:

Coincident indicator (Monthly) (June) increased from -1.9% to 4.1%

The main index decreased from 101.2 to 100.6

Leading Index (Monthly) (June) increased from -1.7% to -0.6%

Hong Kong:

Foreign reserves (USD) (July) decreased from 447.20 billion to 441.70 billion

Singapore:

Retail Sales (Monthly) (June) decreased from 1.8% to -1.4%

Retail sales (year over year) (June) decreased from 17.8% to 14.8%

EUROPE / EMEA:

The Bank of England has warned that the UK will fall into recession as it has raised interest rates more in 27 years. The economy is expected to contract in the last three months of this year and continue to decline until the end of 2023. Interest rates have risen to 1.75% as the bank fights to stem the surge in prices, with the inflation now above 13%. Bank governor Andrew Bailey said he has “tremendous sympathy and understanding for those who are struggling the most” with the cost of living. Now rates have risen to 1.75%, homeowners with a typical mortgage will have to pay an extra £ 52 per month. Those with standard adjustable rate mortgages will see an increase of £ 59.

Bad day for the main European stock exchanges:

The CAC 40 decreased by 41.04 points or -0.63% to 6,472.35

The FTSE 100 decreased by 8.32 points or -0.11% to 7,439.74

The DAX 30 decreased by 88.75 points or -0.65% to 13,573.93

The major European currency markets had a mixed day today:

  • EURUSD fell 0.0068 or -0.66% to 1.01797
  • GBPUSD fell 0.00803 or -0.66% to 1.20768
  • USDCHF is up 0.00749 or 0.78% to 0.96239

Some economic news from Europe today:

UK:

Halifax House Price Index (YoY) decreased from 12.5% ​​to 11.8%

Halifax House Price Index (Monthly) (July) decreased from 1.4% to -0.1%

Germany:

German Industrial Production (Monthly) (June) increased from -0.1% to 0.4%

France:

The French current account (June) increased from -3.70 billion to -1.60 billion

French exports (June) increased from 48.2 billion to 49.7 billion

French imports (June) increased from 61.1 billion to 62.8 billion

French Industrial Production (Monthly) (June) increased from 0.2% to 1.4%

French non-farm payslips (QoQ) (Q2) increased from 0.3% to 0.5%

Total French reserve assets (July) increased from 240,187.0 million to 241,892.0 million

The French trade balance (June) decreased from -12.9 billion to -13.1 billion

Spain:

Spanish industrial production (year over year) (June) increased from 4.5% to 7.0%

Italy:

Italian Industrial Production (Monthly) (Jun) decreased from -1.1% to -2.1%

Italian industrial production (y / y) (June) decreased from 3.4% to -1.2%

USA / AMERICA:

The US Bureau of Labor Statistics (BLS) reported an upbeat employment report this Friday. Non-farm wages rose 528,000 in July, surpassing expectations of 258,000, which lowered the unemployment rate from 3.6% to 3.5%. Wage growth increased by 0.5% on a monthly basis and by 5.2% on an annual basis. Leisure and hospitality saw the largest increase after adding 96,000 jobs, followed by business services at 89,000. Health services increased by 70,000 locations, government grew by 57,000, and construction saw an increase of 32,000. This is the strongest payroll report since February this year.

The US market closes:

  • Dow advanced 74.69 points or 0.23% to 32,801.51
  • S&P 500 fell 6.87 points or -0.17% to 4,145.07
  • The Nasdaq fell 63.02 points or -0.5% to 12,657.56
  • Russell 2000 advanced 15.37 points or 0.81% to 1,921.82

Closing of the Canadian market:

  • TSX Composite advanced 43.09 points or 0.22% to 19,620.13
  • TSX 60 advanced 2.19 points or 0.18% at 1,186.24

Closing of the Brazilian market:

  • Bovespa advanced 579.7 points or 0.55% to 106,471.92

POWER:

Today the oil markets had a mixed day:

l Crude oil rose USD 1.25 / BBL or 1.41% to 89.703

l Brent rose USD 1.5 / BBL or 1.59% to 95.436

l Natural gas increased by USD 0.066 / MMBtu or 0.81% to 8.1923

l Gasoline increased by USD 0.0782 / GAL or 2.80% to 2.8677

l Heating oil fell by USD 0.0627 / GAL or -1.88% to 3.2688

The above data was collected around 12:52 PM EST on Friday

l Best commodity earnings: gasoline (2.80%), sugar (2.22%), palladium (3.15%) and oats (2.16%)

l Losing raw materials: cocoa (-1.62%), coffee (-4.13%), timber (-4.06%) and fuel oil (-1.88%)

The above data was collected around 1pm EST on Friday.

OBLIGATIONS:

Japan 0.165% (+0 bps), United States 2 3.24% (+ 0.201%), United States 10 2.8360% (+16 bps); US 30’s 3.07% (+ 0.113%), Bund 0.9440% (+13.5bps), France 1.4950% (+13.3bps), Italy 3.03% (+8.4bps) , Turkey 16.45% (-27 bps), Greece 3.052% (+ 7.5 bps), Portugal 1,970% (+13.2 bps); Spain 2.046% (+13.6bps) and British Gilts 2.0350% (+14.8bps).

«Market interview – August 4, 2022