ASIA:
By 2030, China is forecast to become the world’s largest economy, for now it has just surpassed the EU. In a milestone moment, the economy of China surpassed the whole of the European Union (EU) for the first time. China’s GDP for 2021 expanded by 8.1 percent, according to figures released last month by the county’s National Bureau of Statistics. The full-year GDP resulted in China’s economy increasing in value by $3 trillion from 2020 to 17.7 trillion in 2021, leaping ahead of the EU. The world’s second-largest economy benefited significantly during the Covid-19 crisis from its status as the world’s factory. However, most of the economic gains for China were driven by strong industrial output and exports.
The major Asian stock markets had a green day today:
- NIKKEI 225 increased 455.12 points or 1.68% to 27,533.60
- Shanghai closed
- Hang Seng closed
- ASX 200 increased 81.70 points or 1.17% to 7,087.70
- Kospi closed
- SENSEX increased 695.76 points or 1.18% to 59,558.33
- Nifty50 increased 203.15 points or 1.16% to 17,780.00
The major Asian currency markets had a negative day today:
- AUDUSD decreased 0.00043 or -0.06% to 0.71306
- NZDUSD decreased 0.00076 or -0.11% to 0.66322
- USDJPY decreased 0.403 or -0.35% to 114.328
- USDCNY decreased 0.00911 or -0.14% to 6.36019
Precious Metals:
- Gold increased 9.09 USD/t oz. or 0.50% to 1,809.74
- Silver increased 0.145 USD/t. oz or 0.64% to 22.778
Some economic news from last night:
Japan:
Monetary Base (YoY) increased from 8.3% to 8.4%
New Zealand:
Employment Change (QoQ) (Q4) decreased from 2.0% to 0.1%
Labor Cost Index (YoY) (Q4) increased from 2.5% to 2.8%
Labor Cost Index (QoQ) (Q4) remain the same at 0.7%
Participation Rate (Q4) decreased from 71.20% to 71.10%
Unemployment Rate (Q4) decreased from 3.3% to 3.2%
EUROPE/EMEA:
The EU-wide GDP stood at just over $17 trillion, regaining its pre-Covid-19 size. Figures released this week by the European Statistical Office (Eurostat) said that the gross domestic product (GDP) of the EU grew by 5.2 percent for 2021, following a record-breaking recession in 2020. Analysts wanted that the EU has yet to recover fully from the tight restrictions from the Omicron variant, which led to tighter restrictions across the economic bloc, resulting in lower consumer spending and supply chain bottlenecks, impacting manufacturing.
The major Europe stock markets had a mixed day:
- CAC 40 increased 15.78 points or 0.22% to 7,115.27
- FTSE 100 increased 47.22 points or 0.63% to 7,583.00
- DAX 30 decreased 5.62 points or -0.04% to 15,613.77
The major Europe currency markets had a mixed day today:
- EURUSD increased 0.00356 or 0.32% to 1.13083
- GBPUSD increased 0.00482 or 0.36% to 1.35734
- USDCHF decreased 0.00308 or -0.33% to 0.91816
Some economic news from Europe today:
France:
French Government Budget Balance (Dec) increased from -178.1B to -170.7B
Spain:
Spanish Unemployment Change increased from -76.8K to 17.2K
Italy:
Italian CPI (MoM) (Jan) increased from 0.4% to 1.6%
Italian CPI (YoY) (Jan) increased from 3.9% to 4.8%
Italian HICP (MoM) (Jan) decreased from 0.5% to 0.2%
Italian HICP (YoY) (Jan) increased from 4.2% to 5.3%
Euro Zone:
Core CPI (MoM) increased from 0.4% to 1.6%
Core CPI (YoY) decreased from 2.6% to 2.3%
CPI (YoY) (Jan) increased from 5.0% to 5.1%
CPI (MoM) decreased from 0.4% to 0.3%
CPI, n.s.a (Jan) increased from 110.37 to 110.74
HICP ex Energy & Food (YoY) (Jan) decreased from 2.7% to 2.5%
HICP ex Energy and Food (MoM) decreased from 0.4% to -0.5%
US/AMERICAS:
The ADP reported today that US companies unexpectedly cut jobs in January. Private payrolls declined to 301,000 last month, far beneath the estimated 200,000. December’s significant gain of 776,000 also played a role in decreased hires. The hospitality sector, continually volatile throughout the pandemic, saw the largest decline of 154,000, accounting for more than half of losses. Trade, transportations and utilities fell by 62,000, while manufacturing shed 21,000 jobs.
Alphabet, Google’s parent company, approved plans for a 20-for-1 stock split. Alphabet’s stock rose 9% in aftermarket trading after the plan was announced. According to the earnings statement, Alphabet intends to split the Class A, Class B, and Class C shares of the stock.
US Market Closings:
- Dow advanced 224.09 points or 0.63% to 35,629.33
- S&P 500 advanced 42.85 points or 0.94% to 4,589.39
- Nasdaq advanced 71.54 points or 0.5% to 14,417.55
- Russell 2000 declined 21.22 points or -1.03% to 2,029.52
Canada Market Closings:
- TSX Composite advanced 4.34 points or 0.34% to 1,299.04
- TSX 60 advanced 4.34 points or 0.34% to 1,299.04
Brazil Market Closing:
- Bovespa declined 1,333.95 points or -1.18% to 111,894.36
ENERGY:
The oil markets had a mixed day today:
- Crude Oil decreased 0.44 USD/BBL or -0.50% to 87.7600
- Brent decreased 0.3 USD/BBL or -0.34% to 88.8600
- Natural gas increased 0.676 USD/MMBtu or 14.23% to 5.4270
- Gasoline increased 0.0159 USD/GAL or 0.62% to 2.5911
- Heating oil increased 0.002 USD/GAL or 0.07% to 2.7432
The above data was collected around 12:31 EST on Wednesday
- Top commodity gainers: Natural Gas (14.23%) and Lithium (2.72%), Coal (4.51%), Lumber (4.81%)
- Top commodity losers: Wheat (-2.15%), Cheese(-1.90%), Sugar(-2.00%) and Corn(-1.97%)
The above data was collected around 12:38 EST on Wednesday.
BONDS:
Japan 0.185%(+0.6bp), US 2’s 1.15% (-0.018%), US 10’s 1.752% (-4.26bps); US 30’s 2.07% (-0.042%), Bunds 0.041% (+0.4bp), France 0.45% (-0.1bp), Italy 1.43% (+1.1bp), Turkey 22.49% (+24bp), Greece 1.785% (+1.6bp), Portugal 0.718% (+4.6bp); Spain 0.792% (+0.9bp) and UK Gilts 1.255% (-4.7bp).
