We will take a short recess from Market Talk to focus on this year’s annual World Economic Conference.
The conference will take place in Orlando, FL, but virtual tickets are still available. Click here to learn more.
ASIA:
China’s official manufacturing Purchasing Managers’ Index for October came in at 49.2 over the weekend, below the 50 level separating expansion from contraction. Chinese tech stocks in Hong Kong plunged after the country’s market regulators on Friday released a list of proposed responsibilities for the country’s internet platforms spanning areas such as governance and data security.
Shares in Asia-Pacific were mixed on Monday as investors reacted to economic data that showed a mixed picture of Chinese manufacturing activity in October. Japanese stocks led gains regionally as the Nikkei 225 jumped 2.61% to close at 29,647.08, with shares of Fast Retailing soaring 4.22%. The Topix index climbed 2.18% on the day to 2,044.72. Those gains came after the country’s ruling Liberal Democratic Party held on to its single-party majority in a Sunday parliamentary election.
The major Asian stock markets had a mixed day today:
- NIKKEI 225 increased 754.39 or 2.61% to 29,647.08
- Shanghai decreased 2.86 or -0.08% to 3,544.48
- Hang Seng decreased 222.92 points or -0.88% to 25,154.32
- ASX 200 increased 47.10 points or 0.64 to 7,370.80
- Kospi increased 8.26 points or 0.28% to 2,978.94
- SENSEX increased 831.53 points or 1.40% to 60,138.46
- Nifty50 increased 258.00 points or 1.46% to 17,929.65
The major Asian currency markets had a mixed day today:
- AUDUSD increased 0.00058 or 0.08% to 0.75258
- NZDUSD increased 0.00225 or 0.31% to 0.71885
- USDJPY increased 0.11 or 0.09% to 114.10
- USDCNY decreased 0.01052 or -0.16% to 6.39516
Precious Metals:
- Gold increased 11.71 USD/t oz. or 0.66% to 1,794.52
- Silver increased 0.17 USD/t. oz or 0.71% to 24.020
Some economic news from last night:
China:
Caixin Manufacturing PMI (Oct) increased from 50.0 to 50.6
Japan:
Manufacturing PMI (Oct) increased from 51.5 to 53.2
South Korea:
Exports (YoY) (Oct) increased from 16.7% to 24.0%
Imports (YoY) (Oct) increased from 31.0% to 37.8%
Trade Balance (Oct) decreased from 4.21B to 1.69B
Nikkei Manufacturing PMI (Oct) decreased from 52.4 to 50.2
Australia:
AIG Manufacturing Index (Oct) decreased from 51.2 to 50.4
Manufacturing PMI increased from 56.8 to 58.2
MI Inflation Gauge (MoM) decreased from 0.3% to 0.2%
ANZ Job Advertisements (MoM) increased from -2.8% to 6.2%
Home Loans (MoM) increased from -6.6% to -2.7%
Indonesia:
Nikkei Manufacturing PMI (Oct) increased from 52.2 to 57.2
Some economic news from today:
India:
Nikkei Markit Manufacturing PMI (Oct) increased from 53.7 to 55.9
Hong Kong:
GDP (YoY) (Q3) decreased from 7.6% to 5.4%
GDP (QoQ) (Q3) increased from -0.9% to 0.1%
Indonesia:
Core Inflation (YoY) (Oct) increased from 1.30% to 1.33%
Inflation (YoY) (Oct) increased from 1.60% to 1.66%
Inflation (MoM) (Oct) increased from -0.04% to 0.12%
Australia:
Commodity Prices (YoY) increased from 36.8% to 40.7%
EUROPE/EMEA:
Almost twice as many voters now believe Brexit is having a negative effect on the UK economy, according to the Opinium survey for the Observer carried out during the budget week. The survey comes after Richard Hughes, the chairman of the Office for Budget Responsibility, said his organization calculated that the negative impact on GDP caused by the UK’s exit from the EU was expected to be twice as great as that resulting from the pandemic. The Opinium survey found that 44% of people think Brexit is having a harmful impact on the UK economy, compared with 25% who think it is having a positive While chancellor Rishi Sunak’s approval rating rose slightly after his budget speech on Wednesday, in which he increased government spending to its highest sustained level since the 1970s while warning that inflation would rise to 4% next year, the fact that people appear to be linking Brexit with economic problems including rising prices will be a worry to No 10 and No 11 Downing Street.
The major Europe stock markets had a green day:
- CAC 40 increased 62.95 points or 0.92% to 6,893.29
- FTSE 100 increased 51.05 points or 0.71% to 7,288.62
- DAX 30 increased 117.52 points or 0.75% to 15,806.29
The major Europe currency markets had a mixed day today:
- EURUSD increased 0.00321 or 0.28% to 1.15936
- GBPUSD decreased 0.0031 or -0.23% to 1.36615
- USDCHF decreased 0.00484 or -0.53% to 0.91035
Some economic news from Europe today:
Norway:
Manufacturing PMI (Oct) decreased from 59.0 to 58.5
Swiss:
procure.ch PMI (Oct) decreased from 68.1 to 65.4
Germany:
German Retail Sales (MoM) (Sep) decreased from 1.2% to -2.5%
German Retail Sales (YoY) (Sep) decreased from 0.9% to -0.9%
UK:
Manufacturing PMI (Oct) increased from 57.1 to 57.8
US/AMERICAS:
Treasury Secretary Janet Yellen continued to urge lawmakers to raise or eliminate the debt ceiling before the December 3 deadline. “I strongly believe that it is bipartisan responsibility to do this,” Yellen stated this Monday. Congress approved a temporary increase of $480 billion in October, but the GOP has reiterated its stance not to raise the debt ceiling amid Biden’s ongoing spending plans. The current debt ceiling is over $28.4 trillion and growing. Yellen continues to reiterate her stance that defaulting on the nation’s debt would be the worst possible outcome, eliminating the US’ credibility and having “catastrophic” consequences. “It is my view — it’s not the White House view; it’s not the president’s view; they haven’t weighed in on this — but I personally feel we should not have a debt ceiling,” Yellen told reporters.
The Biden Administration will reveal vaccine mandate plans in the coming days. Meanwhile, Amazon, the second-largest employer in the US, will not require fully vaccinated employees to wear masks at work. The company has not mandated vaccines but has offered incentives such as sweepstakes to entice employees to get the vaccine. This comes amid a mass worker shortage and employers fearing that the mandate will create an exodus from the workforce right before the busiest buying season.
US Market Closings:
- Dow advanced 94.28 points or 0.26% to 35,913.84
- S&P 500 advanced 8.29 points or 0.18% to 4,613.67
- Nasdaq advanced 97.53 ponts or 0.63% to 15,595.92
- Russell 2000 advanced 60.93 points or 2.65% to 2,358.12
Canada Market Closings:
- TSX Composite advanced 209.94 points or 1% to 21,247.01
- TSX 60 advanced 12.68 points or 1% to 1,277.87
Brazil Market Closing:
- Bovespa advanced 2,050.15 points or 1.98% to 105,550.86
ENERGY:
The oil markets had a mixed day today:
- Crude Oil increased 0.37 USD/BBL or 0.44% to 83.9400
- Brent increased 0.83 USD/BBL or 0.99% to 84.5500
- Natural gas decreased 0.254 USD/MMBtu or -4.68% to 5.1720
- Gasoline increased 0.0263 USD/GAL or 1.11% to 2.3960
- Heating oil decreased 0.0041 USD/GAL or -0.17% to 2.4746
The above data was collected around 13:42 EST on Monday
- Top commodity gainers: Canola (2.72%) and Platinum (4.38%), Cotton (4.35%) and Oat (3.63%)
- Top commodity losers: Coal (-32.87%), Rubber (-2.28%), Natural Gas (-4.68%), and Lumber (-2.30%)
The above data was collected around 13:45 EST on Monday
BONDS:
Japan 0.100%(+0.6bp), US 2’s 0.5149% (+0.01%), US 10’s 1.5768%(+1.59bps); US 30’s 1.9686%(
+0.03%), Bunds -0.109% (-0.4bp), France 0.2640% (-0.7bp), Italy 1.219% (+8.93bp), Turkey 18.99% (-9bp), Greece 1.334% (-0.4bp), Portugal 0.57% (+4.9bp); Spain 0.637% (+2.4bp) and UK Gilts 1.043% (+0.8bp).
