Market Talk – May 24, 2021

Posted May 24, 2021 by Martin Armstrong |

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ASIA:

The major Asian stock markets had a mixed day today:

NIKKEI 225 increased 46.78 points or 0.17% to 28,364.61
Shanghai increased 10.73 points or 0.31% to 3,497.28
Hang Seng decreased 46.18 points or -0.16% to 28,412.26
ASX 200 increased 15.60 points or 0.22% to 7,045.90
Kospi decreased 12.12 points or -0.38% to 3,144.30
SENSEX increased 111.42 points or 0.22% to 50,651.90
Nifty50 increased 22.40 points or 0.15% to 15,197.70

The major Asian currency markets had a mixed day today:

AUDUSD increased 0.0014 or 0.18% to 0.77399
NZDUSD increased 0.00379 or 0.53% to 0.72049
USDJPY decreased 0.14 or -0.13% to 108.81
USDCNY decreased 0.01997 or -0.31% to 6.41454

Precious Metals:

Gold increased 3.13 USD/t oz. or 0.17% to 1,883.43
Silver increased 0.181 USD/t. oz or 0.66% to 27.701

Some economic news from last night:

New Zealand:

Core Retail Sales (QoQ) increased from -2.9% to 3.2%

Retail Sales (QoQ) (Q1) increased from -2.7% to 2.5%

Retail Sales Quarterly Vs. Year Ago (Q1) increased from 4.8% to 6.8%

Some economic news from today:

Singapore:

CPI (YoY) (Apr) increased from 1.3% to 2.1%

Indonesia:

Motorbike Sales (YoY) (Apr) increased from -7.20% to 282.00%

EUROPE/EMEA:

The major Europe stock markets had a green day:

CAC 40 increased 22.08 points or 0.35% to 6,408.49
FTSE 100 increased 33.54 points or 0.48% to 7,051.59
DAX 30 closed

The major Europe currency markets had a mixed day today:

EURUSD increased 0.00253 or 0.21% to 1.22058
GBPUSD decreased 0.00095 or -0.07% to 1.41475
USDCHF decreased 0.00029 or -0.03% to 0.89747

US/AMERICAS:

Federal Reserve Governor Lael Brainard proposed the idea of a digital dollar backed by the Federal Reserve. “The Federal Reserve remains committed to ensuring that the public has access to safe, reliable, and secure means of payment, including cash. As part of this commitment, we must explore — and try to anticipate — the extent to which households’ and businesses’ needs and preferences may migrate further to digital payments over time,” Brainard stated. Critics, however, note the original purpose of a cryptocurrency and blockchain technology was to stay off the grid from governments.

Peloton Interactive Inc announced plans to launch a $400 million manufacturing company in the US. The 200-acre location in Ohio is expected to bring over 2,000 jobs to the area. Peloton CEO John Foley said that flexibility and possessing a global supply chain will boost sales as most of its products are manufactured in Asia and shipping delays became commonplace during the pandemic. The factory is expected to open in 2023.

Mexico’s inflation remained far above the Bank of Mexico’s target range during the May. Inflation stood around 5.8% during the first half of May, while analyst expected inflation to ease to 5.66%. The central bank has been aiming for an inflation rate of 3%. Earlier in the month, bank members voted unanimously to maintain interest rates at 4%.

US Market Closings:

Dow advanced 185.94 points or 0.54% to 34,393.78
S&P 500 advanced 41.29 points or 0.99% to 4,197.15
Nasdaq advanced 190.18 points or 1.41% to 13,661.17
Russell 2000 advanced 12.07 points or 0.54% to 2,227.34

Canada Market Closings:

TSX Composite declined 15.65 points or -0.08% to 19,527.3
TSX 60 declined 1.22 points or -0.1% to 1,169.48

Brazil Market Closing:

Bovespa advanced 1,439.15 points or 1.17% to 124,031.62

ENERGY:

The oil markets had a mixed day today:

Crude Oil increased 2.06 USD/BBL or 3.24% to 65.6400
Brent increased 1.8 USD/BBL or 2.71% to 68.2400
Natural gas decreased 0.027 USD/MMBtu or -0.93% to 2.8790
Gasoline increased 0.0387 USD/GAL or 1.87% to 2.1072
Heating oil increased 0.0473 USD/GAL or 2.38% to 2.0355

Top commodity gainers: Crude Oil (3.24%), Brent (2.71%), Heating Oil (2.38%) and Oat (2.04%)
Top commodity losers: Palladium (-1.99%), Wheat (-1.89%), Cocoa (-2.97%), and Orange Juice (-1.10%)

The above data was collected around 12:41 EST on Monday.

BONDS:

Japan 0.0830%(+0bp), US 2’s 0.15%(-0.006%), US 10’s 1.608%(-2.4bps); US 30’s 2.3032%(-0.03%), Bunds -0.1390% (-1.2bp), France 0.234% (-1.4bp), Italy 1.0207% (-1.36bp), Turkey 17.50% (+2bp), Greece 0.9720% (+0bp), Portugal 0.562% (-0.6bp); Spain 0.545% (-1.6bp) and UK Gilts 0.809% (-2.3bp).