Market interview – 21 September 2022

ASIA:

Taiwan will never allow China to “interfere” in its future, the government said Wednesday after a Chinese government spokesman said Beijing is willing to make every effort to fight for peaceful “reunification” with the island. . China claims that Taiwan has democratically ruled as its own territory. The Taiwanese government rejects China’s claims of sovereignty. China has been carrying out military exercises near Taiwan since the beginning of last month, after US House Speaker Nancy Pelosi visited Taipei, including launching missiles in waters near the island, although activities have since decrease. China has proposed a “one country, two systems” model for Taiwan, similar to the formula by which the former British colony of Hong Kong returned to Chinese rule in 1997.

Bad day for major Asian equity markets:

  • NIKKEI 225 decreased 375.29 points or -1.36% to 27,313.13
  • Shanghai fell 5.23 points or -0.17% to 3,117.18
  • Hang Seng fell 336.80 points or -1.79% to 18,444.62
  • Kospi was down 20.64 points or -0.87% to 2,347.21
  • ASX 200 is down 106.20 points or -1.56% to 6,700.20
  • SENSEX decreased by 262.96 points or -0.44% to 59,456.78
  • Nifty50 was down 97.90 points or -0.55% to 17,718.35

The major Asian currency markets had a mixed day today:

  • AUDUSD fell by 0.00410 or -0.61% to 0.66541
  • NZDUSD fell 0.00130 or -0.22% to 0.58761
  • USDJPY is up 0.781 or 0.54% to 144.345
  • USDCNY is up 0.03160 or 0.45% to 7.06125

Precious metals:

  • Gold rose by USD 5.79 / toz. or from 0.35% to 1,668.90
  • Silver rose by USD 0.222 / t. oz or 1.15% at 19,532

Some economic news from last night:

Australia:

MI Leading Index (MoM) increased from -0.2% to -0.1%

New Zeland:

Credit card spending (year-on-year) increased from 5.1% to 29.4%

EUROPE / EMEA:

The UK government said Wednesday it will limit wholesale electricity and gas costs for businesses to less than half the market rate from next month, helping to ease the pressure from rising energy prices but adding to spending. rapidly growing public. Wholesale electricity prices will be capped at around £ 211 ($ 239) per megawatt hour (MWh) and gas prices at £ 75 per MWh, compared to expected market rates of £ 600 and £ 180 respectively. ‘Wholesale of gas and electricity in Europe increased after Russia invaded Ukraine and have remained volatile ever since. The unit prices of the final program will be confirmed on 30 September. Groups representing companies, from pubs to steelmakers, welcomed the crackdown, saying the government has thrown a lifeline for companies struggling to survive.

Major European exchanges had a green day:

  • CAC 40 was up 51.86 points or 0.87% to 6,031.33
  • FTSE 100 is up 44.98 points or 0.63% to 7,237.64
  • DAX 30 is up 96.32 points or 0.76% to 12,767.15

The major European currency markets had a mixed day today:

  • EURUSD fell by 0.00977 or -0.98% to 0.98742
  • GBPUSD fell 0.00599 or -0.53% to 1.13203
  • USDCHF is up by 0.00165 or 0.17% to 0.96575

Some economic news from Europe today:

UK:

Public sector net debt (August) increased from 2.11 billion to 11.06 billion

The net cash requirement of the public sector (August) increased from -5.087 billion to 5.321 billion

CBI Industrial Trends orders (September) increased from -7 to -2

USA / AMERICA:

The verdict is voted on and the Federal Open Market Committee will raise rates by three-quarters of a point. As inflation runs at a level not seen in 40 years, the Fed is acting aggressively with no intention of changing its hawkish policy anytime soon. This marks the third consecutive move of 75 basis points with rates now hovering between 3% and 3.25%. The Fed has set a terminal rate of 4.6% in 2023, although inflation is not at the 2% target. The Fed also said it sees US GDP grow only 0.2% in 2022 and a mere 1.8% over the long term. “Nobody knows if this process will lead to a recession or, if so, how significant that recession will be,” said Jerome Powell.

The US market closes:

  • Dow fell 522.45 points or -1.7% to 30,183.78
  • S&P 500 fell 66 points or -1.71% to 3,789.93
  • The Nasdaq fell 204.86 points or -1.79% to 11,220.19
  • Russell 2000 fell 25.35 points or -1.42% to 1,762.16

Closing of the Canadian market:

  • TSX Composite fell 184.54 points or -0.95% to 19,184.54
  • TSX 60 fell 12.11 points or -1.03% to 1,160.53

Closing of the Brazilian market:

  • Bovespa loses 581.05 points or -0.52% to 111.935.86

POWER:

Today the oil markets had a mixed day:

  • Crude Oil fell by USD 0.06 / BBL or -0.07% to 83.880
  • Brent fell by USD 0.101 / BBL or -0.11% to 90.519
  • Natural gas was up by USD 0.0338 / MMBtu or 0.44% to 7.7508
  • Gasoline increased by USD 0.0479 / GAL or 1.96% to 2.4957
  • Heating oil rose by USD 0.0083 / GAL or 0.25% to 3.3805

The above data was collected at around 1:47 pm EST on Wednesday

  • Top raw material earnings: palm oil (4.01%), canola (2.15%), bitumen (2.54%) and cotton (3.06%)
  • Main losers in commodities: copper (-1.42%), palladium (-2.11%), coffee (-3.00%) and timber (-2.85%)

The above data was collected around 1:53 PM EST on Wednesday.

OBLIGATIONS:

Japan 0.258% (+0.3 bps), United States 2 3.99% (+ 0.025%), United States 10 3.5672% (-0.58 bps); US 30’s 3.58% (-0.005%), Bund 1.884% (-5.5 bps), France 2.438% (-5.2 bps), Italy 4.123% (-6.9 bps), Turkey 11.32% (+0 bps), Greece 4.454% (- 2.7 bps), Portugal 2.955% (-3.9 bps); Spain 3.024% (-5.9bps) and UK Gilts 3.3140% (+2bps).

«Market interview – September 20, 2022