Noticias de dinero

Market Talk – May 26, 2023

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ASIA:

 

Core consumer inflation in Tokyo, Japan’s capital, slowed down in May. However, an important inflation index that excludes the impact of fuel has hit a four-decade high, signaling mounting price pressures. This could potentially support expectations of an end to the current loose monetary policy. Tokyo’s core consumer price index, which excludes volatile fresh produce but includes fuel costs, rose 3.2% in May from a year earlier, in line with a market forecast of 3.3%. Although inflation eased from 3.5% the previous month, it remained above the Bank of Japan’s 2% target for the entire year, helped by a steady rise in food prices offsetting lower fuel prices. Additional data showed that prices charged by service companies to each other rose by 1.6% in April compared to the previous year, marking the 26th month in a row. This was due to the reopening of the economy after the restrictions associated with the pandemic, which increased the demand for tourism.

 

Major Asian stock markets had a green day today:

  • The NIKKEI 225 rose 115.18 points, or 0.37%, to trade at 30,916.31.
  • Shanghai rose 11.24 points, or 0.35%, to 3212.50.
  • Hang Sen closed
  • The ASX 200 rose 16.60 points, or 0.23%, to 7,154.80.
  • Kospi rose 4.12 points or 0.16% to 2,558.81.
  • SENSEX increased by 629.07 points or 1.02% to 62,501.69.
  • Nifty50 increased by 178.20 points or 0.97% to 18,499.35.

 

 

Today was a mixed day for the major Asian currency markets:

  • AUD/USD rose 0.00089, or 0.14%, to hit 0.65149.
  • NZDUSD fell 0.00171 or -0.28% to hit 0.60449.
  • USDJPY rose 0.507 or 0.36% to hit 140.557.
  • USDCNY fell 0.01805 or -0.25% to hit 7.07275.

 

Precious metals:

  • Gold has risen in price by $3.90/t. or 0.20% before 1944.24
  • Silver has risen in price by $0.475/t. oz or 2.08% to 23.245

 

Some economic news from last night:

Japan:

Tokyo Core CPI (YoY) (May) fell from 3.5% to 3.2%.

Tokyo Ex Food and Energy CPI (MoM) (May) fell from 0.7% to 0.2%.

Australia:

Retail sales (MoM) (April) fell from 0.4% to 0.0%

 

Some economic news for today:

Japan:

Match indicator (MoM) increased from 0.0% to 0.1%

The leading index (MoM) increased from -0.7% to -0.5%

The leading index fell from 98.0 to 97.7.

India:

Foreign exchange reserves in US dollars decreased from 599.53 billion to 593.48 billion US dollars.

 

 

EUROPE/EMEA:

 

Ireland’s central bank governor Gabriel Makhlouf said the European Central Bank (ECB) is considering two more rate hikes, although the timing of a future hike remains uncertain due to persistent inflation. The ECB has already raised rates by 375 basis points since July last year, and discussions now revolve around determining when to end monetary tightening to bring eurozone inflation back to the ECB’s 2% target. On the other hand, François Villeroy de Gallo of France had a more subtle point of view, suggesting that the peaks should be reached by the end of September or within the next three meetings. Market expectations currently suggest a rate increase of around 65 basis points in the coming months, indicating confidence in further increases.

 

The main European stock markets had a green day today:

  • CAC 40 increased by 89.91 points or 1.24% to 7,319.18.
  • The FTSE 100 rose 56.33 points, or 0.74%, to 7,627.20.
  • The DAX 30 was up 190.17 points, or 1.20%, at 15,983.97.

 

Today was a mixed day in the major European currency markets:

  • EURUSD rose 0.00025 or 0.02% to hit 1.07215.
  • GBPUSD rose 0.00231 or 0.19% to hit 1.23441.
  • USDCHF shed 0.00023 or -0.03% to hit 0.90527.

 

 

Some economic news from Europe today:

GREAT BRITAIN:

Core Retail Sales (MoM) (April) Increased from -1.4% to 0.8%

Core Retail Sales (YoY) (April) increased from -4.0% to -2.6%

Retail sales (YoY) (April) increased from -3.9% to -3.0%

Retail sales (MoM) (April) increased from -1.2% to 0.5%

Switzerland:

The employment rate (Q1) decreased from 5.398 million to 5.389 million.

France:

The total number of job seekers in France increased from 2789.0 thousand to 2799.8 thousand.

 

US Market Closing:

  • The Dow rose 328.69 points, or 1%, to 33,093.34.
  • The S&P 500 rose 54.19 points, or 1.31%, to 4205.47.
  • The Nasdaq added 277.59 points, or 2.19%, to 12,975.69.
  • Russell 2000

 

Closing the Canadian Market:

  • TLC Composite
  • TLC 60

 

Brazil Market Closing:

  • Bovespa

USA/AMERICA:

A key indicator from the Federal Reserve showed inflation rose 0.4% in April and 4.7% year-over-year. This is the highest level since 1990. However, the pace of growth gave some hope that the cost of living will come down later this year. The CPI, which measures the cost of a wide range of goods and services, rose 0.4% MoM in line with Dow Jones estimates, according to a Labor Department report. The report also showed that inflation remains robust despite the Fed’s efforts to cut prices. The CPI has declined significantly since peaking at around 9% in June 2022. However, inflation remains a problem for the economy.

US Market Closing:

  • The Dow rose 328.69 points, or 1%, to 33,093.34.
  • The S&P 500 rose 54.17 points, or 1.3%, to 4205.45.
  • The Nasdaq added 277.59 points, or 2.19%, to 12,975.69.
  • Russell 2000 rose 18.41 points or 1.05% to 1773.02.

 

Closing the Canadian Market:

  • The TSX Composite advanced 146.23 points, or 0.74%, to 19,920.31.
  • The TSX 60 rose 9.17 points or 0.77% to hit 1.99.35.

 

Brazil Market Closing:

  • Bovespa climbed 851.13 points, or 0.77%, to trade at 110,905 95.51.

 

ENERGY:

 

Oil markets have had a mixed day today:

 

  • Crude oil rose $0.645/bbl, or 0.90%, to $72.475.
  • Brent rose $0.491/bbl, or 0.64%, to $76.751.
  • Natural gas fell $0.0433/MMBtu, or -1.75%, to 2.4327.
  • Gasoline rose $0.0224 a gallon, or 0.84%, to $2.6959.
  • Heating oil rose $0.0445/gallon, or 1.90%, to $2.3907.

 

The above data was collected around 13:08 EST on Friday.

 

  • Commodity growth leaders: cotton (3.81%), rice (2.71%), zinc (3.15%) and potatoes (4.00%).
  • The main losers were lean pigs (-1.46%), soda ash (-2.59%), natural gas (-1.75%) and cheese (-1.55%).

 

The above data was collected around 13:15 EST on Friday.

 

 

BONDS:

 

Japan 0.419% (-0.8 bp), USA 2 4.56% (+0.054%), USA 10 3.8061% (-0.89 bp); US 30’s 3.97% (-0.037%), Bunds 2.53% (+4.1 bp), France 3.102% (+0.2 bp), Italy 4.369% (-1.8 bp), Turkey 9, 04% (+15 bp), Greece 3.985% (+9.6 bp), Portugal 3.305% (+5.8 bp); Spain 3.591% (+1.3 bp) and UK gilts 4.328% (-4.9 bp).

Fast Market Talk – May 26, 2023 first appeared on Armstrong Economics.