Market Talk – July 8, 2022

ASIA:

Japan’s family spending posted a shock drop in Might, falling for the third consecutive month as the worldwide chip scarcity damage automobile gross sales in a worrying signal for the outlook of the world’s third-largest financial system. Households are additionally going through stress from the yen’s sharp decline that’s pushing up costs of imported gasoline and meals at a time when client confidence nonetheless has to totally shake off the drag of the coronavirus pandemic. Spending slipped 0.5% in Might from a yr earlier, authorities information confirmed on Friday, dragged down by decrease expenditure on greens in addition to automobiles, the place provides have been hit by chip shortages and provide chain disruption.

The key Asian inventory markets had a combined day as we speak:

• NIKKEI 225 elevated 26.66 factors or 0.10% to 26,517.19
• Shanghai decreased 8.32 factors or -0.25% to three,356.08
• Cling Seng elevated 82.20 factors or 0.38% to 21,725.78
• ASX 200 elevated 30.00 factors or 0.45% to six,678.00
• Kospi elevated 16.34 factors or 0.70% to 2,350.61
• SENSEX elevated 303.38 factors or 0.56% to 54,481.84
• Nifty50 elevated 87.70 factors or 0.54% to 16,220.60

The key Asian forex markets had a combined day as we speak:

• AUDUSD elevated 0.00079 or 0.12% to 0.68538
• NZDUSD elevated 0.0015 or 0.24% to 0.61900
• USDJPY elevated 0.146 or 0.11% to 136.121
• USDCNY decreased 0.00343 or -0.05% to six.68877

Treasured Metals:

• Gold elevated 4.25 USD/t oz. or 0.24% to 1,743.86
• Silver elevated 0.117 USD/t. ozor 61% to 19.310

Some financial information from final evening:

Japan:

Family Spending (YoY) (Might) elevated from -1.7% to -0.5%

Family Spending (MoM) (Might) decreased from 1.0% to -1.9%

Adjusted Present Account decreased from 0.51T to 0.01T

Financial institution Lending (YoY) (Jun) elevated from 0.7% to 1.3%

Present Account n.s.a. (Might) decreased from 0.501T to 0.128T

Some financial information from as we speak:

Japan:

Economic system Watchers Present Index (Jun) decreased from 54.0 to 52.9

India:

FX Reserves, USD decreased from 593.32B to 588.31B

EUROPE/EMEA:

Hedge funds posted a unfavorable efficiency in June, bringing losses this yr to virtually 6%, as volatility throughout markets accelerated, a report by hedge fund information supplier HFR confirmed on Friday. The fund weighted composite index fell 3.08% final month. All 4 totally different hedge fund classes tracked by HFR – fairness, event-driven, macro and relative worth – posted losses in June. Macro hedge funds, nevertheless, are nonetheless in optimistic territory for the primary half of the yr, up 8.98%.

The key Europe inventory markets had a inexperienced day:

• CAC 40 elevated 26.43 factors or 0.44% to six,033.13
• FTSE 100 elevated 7.16 factors or 0.10% to 7,196.24
• DAX 30 elevated 172.01 factors or 1.34% to 13,015.23

The key Europe forex markets had a combined day as we speak:

• EURUSD decreased 0.00063 or -0.06% to 1.01607
• GBPUSD decreased 0.00028 or -0.02% to 1.20214
• USDCHF elevated 0.00477 or 0.49% to 0.97847

Some financial information from Europe as we speak:

France:

French Present Account (Might) decreased from -2.70B to -3.90B

French Exports (Might) elevated from 47.1B to 47.8B

French Imports (Might) elevated from 59.8B to 60.8B

French Commerce Steadiness (Might) decreased from -12.7B to -13.0B

Italy:

Italian Industrial Manufacturing (MoM) (Might) decreased from 1.4% to -1.1%

Italian Industrial Manufacturing (YoY) (Might) decreased from 3.9% to three.4%

US/AMERICAS:

The June jobs report confirmed a strengthening labor market after payrolls grew by 372,000, based on the Bureau of Labor Statistics. Analysts had anticipated an increase of solely 250,000. A separate calculation that features discourages and part-time employees additionally fell from 6.7% to 7.1%. The present unemployment charge within the US stays unchanged at 3.6%.

The well being care sector noticed an enormous rise of 77,800 positions final months, main job good points, adopted by skilled and enterprise companies which noticed a 74,000 rise, and leisure and hospitality which grew 67,000. Transportation and warehousing (35,500), manufacturing (29,000), info (25,000), wholesale commerce (16,4000), retail (15,400), development (13,000), and mining (6,000) all noticed will increase as nicely. The one sector to say no was authorities which noticed a downturn of 9,000 as a result of a drop in federal employment.

US Market Closings:

• Dow declined 46.4 factors or -0.15% to 31,338.15
• S&P 500 declined 3.24 factors or -0.08% to three,899.38
• Nasdaq superior 13.96 factors or 0.12% to 11,635.31
• Russell 2000 declined 0.24 of a factors or -0.01% to 1,769.36

Canada Market Closings:

• TSX Composite declined 40.31 factors or 19,022.86
• TSX 60 declined 2.15 factors or -0.19% to 1,155.66

Brazil Market Closing:

• Bovespa declined 440.78 factors or -0.44% to 100,288.94

ENERGY:

The oil markets had a combined day as we speak:

• Crude Oil elevated 1.7 USD/BBL or 1.65% to 104.430
• Brent elevated 2.1 USD/BBL or 2.01% to 106.75
• Pure gasoline decreased 0.147 USD/MMBtu or -2.33% to six.1500
• Gasoline elevated 0.0305 USD/GAL or 0.89% to three.4509
• Heating oil decreased 0.0313 USD/GAL or -0.85% to three.6426

The above information was collected round  12:36 EST on Friday

• High commodity gainers: Cotton (4.61%), Corn (3.41%), Wheat (5.70%) and Palladium (8.45%)
• High commodity losers: Copper (-1.59%), Zinc (-0.82%), Espresso (-2.35%) and Pure Fuel (-2.33%)

The above information was collected round 12:53 EST on Friday.

BONDS: 

Japan 0.244%(+0bp), US 2’s 3.11% (+0.066%), US 10’s 3.0953% (+8.73bps); US 30’s 3.27% (+0.073%), Bunds 1.347% (+4.5bp), France 1.8840% (+3.1bp), Italy 3.382% (+0.5bp), Turkey 18.15% (-2bp), Greece 3.681% (+15.4bp), Portugal 2.435% (+3.6bp); Spain 2.423% (+2.2bp) and UK Gilts 2.2280% (+10bp).