ASIA:
China’s President Xi Jinping said China will strive to hit key economic and social development targets set for this year, even as authorities maintain an aggressive approach to containing Covid-19. Xi said China should push for high-quality development and better coordinated policies around development and safety. He was speaking during a visit to Chengde in the northern province of Hebei this week where he visited several projects, including a farm and an elderly care facility.
India is planning to ask state-run banks to reach out to every district to expand lending to boost demand in the economy, the finance minister said, a move that comes at a time when most lenders are already seeing an increase in bad loans. India has taken various measures to help revive the economy after two devastating waves of coronavirus infections that have led to a record economic contraction. India’s largest lender, the State Bank of India, posted a four-fold jump in slippages, or new bad loans, for the first quarter, ending in June, as its home loan and small business segments struggled.
The major Asian stock markets had a mixed day today:
- NIKKEI 225 increased 17.49 points or 0.06% to 27,742.29
- Shanghai decreased 38.72 points or -1.09% to 3,501.66
- Hang Seng decreased 278.26 or -1.08% to 25,415.69
- ASX 200 decreased 40.70 points or -0.54% to 7,491.20
- Kospi decreased 18.28 points or -0.58% to 3,128.53
- SENSEX increased 4.89 points or 0.01% to 55,949.10
- Nifty50 increased 2.25 points or 0.01% to 16,636.90
The major Asian currency markets had a mixed day today:
- AUDUSD decreased 0.00270 or -0.37% to 0.72470
- NZDUSD decreased 0.00130 or -0.19% to 0.69585
- USDJPY increased 0.10200 or 0.09% to 110.09
- USDCNY increased 0.01130 or 0.18% to 6.48108
Precious Metals:
- Gold increased 2.51 USD/t oz. or 0.14% to 1,793.19
- Silver decreased 0.28 USD/t. oz or -1.17% to 23.580
Some economic news from last night:
Japan:
Corporate Services Price Index (CSPI) (YoY) decreased from 1.3% to 1.1%
Foreign Bonds Buying decreased from 659.7B to -183.0B
Foreign Investments in Japanese Stocks decreased from 199.2B to -550.6B
South Korea:
Interest Rate Decision (Aug) increased from 0.50% to 0.75%
Australia:
Building Capital Expenditure (MoM) (Q2) increased from 3.5% to 4.6%
Plant/Machinery Capital Expenditure (QoQ) (Q2) decreased from 8.8% to 4.3%
Private New Capital Expenditure (QoQ) (Q2) decreased from 6.0% to 4.4%
Some economic news from today:
India:
M3 Money Supply increased from 9.9% to 10.5%
Hong Kong:
Exports (MoM) (Jul) decreased from 33.0% to 26.9%
Imports (MoM) (Jul) decreased from 31.9% to 26.1%
Trade Balance increased from -40.5B to -34.9B
Singapore:
Industrial Production (YoY) (Jul) decreased from 28.0% to 16.3%
Industrial Production (MoM) (Jul) remain the same at -2.6%
EUROPE/EMEA:
Britain’s economic recovery from the winter lockdown is showing signs of stalling amid shortages of workers and supplies due to the double whammy of covid and Brexit, an analysis by the Guardian reported. Figures from the Bank of England show debit and credit card spending has fallen to 94% of its pre-pandemic level in recent weeks as the initial buzz from shops, pubs, and restaurants reopening fades to a lower level. Footfall in town and city centers remains below pre-covid levels, while retail sales unexpectedly dropped in July. Government borrowing in July was down by about £10bn on the same month last year, reflecting the improving economic outlook. National output rose for the fifth month in a row in June, according to the latest figures, as the reopening of the economy from lockdown lifted consumer spending.
The major Europe stock markets had a negative day:
- CAC 40 decreased 10.45 points or -0.16% to 6,666.03
- FTSE 100 decreased 25.14 points or -0.35% to 7,124.98
- DAX 30 decreased 67.04 points or -0.42% to 15,793.62
The major Europe currency markets had a mixed day today:
- EURUSD decreased 0.00140 or -0.12% to 1.17578
- GBPUSD decreased 0.00480 or -0.35% to 1.37154
- USDCHF increased 0.00380 or 0.42% to 0.91753
Some economic news from Europe today:
Swiss:
Employment Level (Q2) increased from 5.101M to 5.126M
Germany:
GfK German Consumer Climate (Sep) decreased from -0.4 to -1.2
France:
French Business Survey (Aug) increased from 109 to 110
French Industrial Investments (Q3) remain the same at 10.0%
Italy:
Italian Industrial Sales (MoM) (Jun) increased from -0.90% to 3.10%
Italian Industrial Sales (YoY) (Jun) decreased from 40.10% to 28.40%
Euro Zone:
M3 Money Supply (YoY) (Jul) decreased from 8.3% to 7.6%
Loans to Non Financial Corporations (Jul) decreased from 1.9% to 1.7%
Private Sector Loans (YoY) increased from 4.0% to 4.2%
US/AMERICAS:
Initial unemployment claims in the US remained relatively stable last week after experiencing a slight increase to 353,000 compared to 349,000 the week prior. Continuing claims declined by 3,000 from the week prior to 2.86 million, according to the Labor Department. The current four-week moving average fell 108,5000 to 2.9 million as the US workforce begins to recover from the pandemic. Maryland and Michigan saw an increase in unemployment last week after posting 3,618 and 3,515 respectfully. In total, Americans receiving benefits reached 12 million as of August 7, but this is a drastic improvement from the 27.5 million individuals receiving aid this time last year.
The Commerce Department updated estimated second quarter growth to 6.6% up from 6.5%. In addition to unemployment steadily declining, the agency noted a large increase in corporate profits that should encourage businesses to stabilize and hire additional employees. The US economy rose 6.3% during the first quarter of 2021 and data suggests it is beginning to stabilize. Consumer spending estimates rose to 11.9%, pushing the GDP higher as well.
Canadian Prime Minister Justin Trudeau said that he plans to raise corporate taxes on Canada’s “largest and most profitable” financial services if re-elected. Trudeau said he would like to use to the funds to pay for his multi-billion dollar housing program plan. Under this plan, corporate income taxes will rise by three percentage points from 15% to 18% on all insurance and bank organizations earning over $1 billion annually. The proposed Home Buyers’ Bill of Rights would “support middle-class Canadians in their goal of home ownership,” according to the prime minister. The Liberal government would also like to implement a “Canada recovery dividend,” which would require the same organizations to contribute more to the Canadian economy over the next four years. It is expected that these two policies would generate a minimum of C$2.5 billion over the next four years beginning in 2022.
US Market Closings:
- Dow declined 192.38 points or -0.54% to 35,213.12
- S&P 500 declined 26.19 points or -0.58% to 4,470.00
- Nasdaq declined 96.05 points or -0.64% to 14,945.81
- Russell 2000 declined 25.29 points or -1.13% to 2,213.98
Canada Market Closings:
- TSX Composite declined 83.17 points or -0.4% to 20,504.15
- TSX 60 declined 6.67 points or -0.54% to 1,229.63
Brazil Market Closing:
- Bovespa declined 2,093.74 points or -1.73% to 118,723.97
ENERGY:
The oil markets had a mixed day today:
- Crude Oil decreased 0.53 USD/BBL or -0.78% to 67.8300
- Brent decreased 0.5 USD/BBL or -0.69% to 71.7400
- Natural gas increased 0.236 USD/MMBtu or 6.06% to 4.1330
- Gasoline decreased 0.0168 USD/GAL or -0.73% to 2.2840
- Heating oil decreased 0.0168 USD/GAL or -0.79% to 2.1014
The above data was collected around 12:15 EST on Thursday
- Top commodity gainers: Natural Gas (6.06%) and Soybeans (1.10%), Wheat (1.12%) and Lumber (2.08%)
- Top commodity losers: Methanol (-1.92%), Rubber (-2.71%), Palladium (-2.06%), and Platinum (-1.70%)
The above data was collected around 12:23 EST on Thursday.
BONDS:
Japan 0.025%(+1bp), US 2’s 0.2406%(-0.00%), US 10’s 1.3576%(+0.85bps); US 30’s 1.9530%(-0.00%),Bunds -0.4080% (+0.9bp), France -0.0530% (+0.8bp), Italy 0.6720% (+0.51bp), Turkey 16.69% (+3bp), Greece 0.6920% (+8bp), Portugal 0.212% (+1bp); Spain 0.328% (+8.9bp) and UK Gilts 0.6050% (+0.6bp).
