ASIA:
Business investment commitments into Singapore dropped about 31% last year, marking the first decline in five years, and after hitting a more than decade high in 2020, government data showed on Wednesday. Commitments for investments in fixed assets such as facilities, machinery, and other equipment shrank to S$11.8 billion ($8.78 billion) in 2021 but remained above a medium to long-term goal of S$8 billion to S$10 billion, according to the Economic Development Board (EDB). Commitments on total business expenditure, which includes wages and rental, fell about 24% to S$5.2 billion.
The major Asian stock markets had a green day today:
- NIKKEI 225 increased 116.21 points or 0.42% to 27,696.08
- Shanghai increased 5.96 points or 0.17% to 3,485.91
- Hang Seng increased 94.36 points or 0.38% to 24.924.35
- ASX 200 increased 20.20 points or 0.28% to 7,288.50
- Kospi increased 3.08 points or 0.11% to 2,771.93
- SENSEX increased 460.06 points or 0.79% to 58,926.03
- Nifty50 increased 142.05 points or 0.81% to 17,605.85
The major Asian currency markets had a mixed day today:
- AUDUSD increased 0.00410 or 0.57% to 0.72184
- NZDUSD increased 0.00210 or 0.32% to 0.67023
- USDJPY increased 0.395 or 0.34% to 115.977
- USDCNY decreased 0.00750 or -0.12% to 6.35580
Precious Metals:
- Gold increased 2.86 USD/t oz. or 0.16% to 1,835.29
- Silver increased 0.15 USD/t. oz or 0.64% to 23.450
Some economic news from last night:
Japan:
Foreign Bonds Buying increased from -555.2B to 72.9B
Foreign Investments in Japanese Stocks decreased from -120.9b to -234.4B
PPI (MoM) (Jan) increased from -0.2% to 0.6%
PPI (YoY) (Jan) decreased from 8.7% to 8.6%
Australia：
MI Inflation Expectations increased from 4.4% to 4.6%
Building Approvals (MoM) increased from 2.6% to 8.2%
Private House Approvals decreased from -1.6% to -1.8%
India:
Cash Reserve Ratio remain the same at 4.00%
Interest Rate Decision remain the same at 4.00%
Reverse REPO Rate remain the same at 3.35%
Some economic news from today
China:
M2 Money Stock (YoY) (Jan) increased from 9.0% to 9.8%
New Loans (Jan) increased from 1,130.0B to 3,980.0B
Outstanding Loan Growth (YoY) (Jan) decreased from 11.6% to 11.5%
Chinese Total Social Financing (Jan) increased from 2,370.0B to 6,170.0B
EUROPE/EMEA:
The FTSE 100 share index has closed at its highest level in over two years. The blue-chip share index ended 1% higher at 7643, amid a global market rally in Europe, America, and Asia-Pacific markets. Travel and hospitality companies were also among the risers after Boris Johnson announced plans to abolish the last domestic Covid restrictions in England, including the requirement for people with the virus to self-isolate, in less than two weeks. The UK-focused FTSE 250 index jumped by 1.8%, with holiday operator TUI rallying 9.7% — yesterday it reported that UK summer holiday bookings were up a fifth on pre-Covid levels.
The Bank of England’s chief economist says that a ‘steady handed’ approach to interest rates is the best policy, given uncertainty over inflation, wage growth, and the energy crisis. In a speech titled “Monetary policy with a steady hand,” Huw Pill explain that international energy and goods prices are driving UK headline inflation higher, having “repeatedly surprised to the upside” in the last year. And on wages, Pill says the Bank now sees underlying wage growth approaching 5% this year, as the labour market continues to tighten. The BoE’s ‘big call’ is that the stronger momentum in domestic wage and cost growth will ease beyond this year, as headline inflation falls, and unemployment rises as energy prices hit incomes and economic demand.
The major Europe stock markets had a mixed day:
- CAC 40 decreased 29.33 points or -0.41% to 7,101.55
- FTSE 100 increased 28.98 points or 0.38% to 7,672.40
- DAX 30 increased 8.43 points or 0.05% to 15,490.44
The major Europe currency markets had a mixed day today:
- EURUSD increased 0.0050 or 0.43% to 1.14703
- GBPUSD increased 0.00870 or 0.64% to 1.36185
- USDCHF decreased 0.00040 or -0.04% to 0.92392
Some economic news from Europe today:
UK:
RICS House Price Balance (Jan) increased from 70% to 74%
Thomson Reuters IPSOS PCSI (Feb) decreased from 51.9 to 51.7
Germany:
Germany Thomson Reuters IPSOS PCSI (Feb) increased from 53.70 to 54.56
France:
France Thomson Reuters IPSOS PCSI (Feb) decreased from 47.48 to 46.25
Italy:
Italy Thomson Reuters IPSOS PCSI (Feb) increased from 44.14 to 46.38
US/AMERICAS:
Inflation in the US soared in January to 7.5%, marking the fastest pace of price gains since February 1982 when the index reached 7.6%. Core prices jumped 6% last month YoY, outpacing December’s 5.5% reading when it reached the sharpest increase since August 1982. President Biden stated that he expects inflation to ease by the end of the year, but Americans are not willing to wait that long. “While today’s report is elevated, forecasters continue to project inflation easing substantially by the end of 2022,” Biden said this Thursday. “And fortunately we saw positive real wage growth last month, and moderation in auto prices, which have made up about a quarter of headline inflation over the last year.” Unfortunately, wage growth has gone into the negatives when accounting for inflation.
US Market Closings:
- Dow declined 526.47 points or -1.47% to 35,241.59
- S&P 500 declined 83.1 points or -1.81% to 4,505.08
- Nasdaq declined 304.73 points or -2.1% to 14,185.64
- Russell 2000 declined 32.34 points or -1.55% to 2,051.16
Canada Market Closings:
- TSX Composite declined 72.47 points or -0.34% to 21,531.72
- TSX 60 declined 3.89 points or -0.3% to 52,599.58
Brazil Market Closing:
- Bovespa advanced 906.38 points or 0.81% to 113,367.77
ENERGY:
The oil markets had a mixed day today:
- Crude Oil increased 0.17 USD/BBL or 0.19% to 89.8200
- Brent decreased 0.08 USD/BBL or -0.09% to 91.4700
- Natural gas decreased 0.025 USD/MMBtu or -0.62% to 3.9840
- Gasoline increased 0.0172 USD/GAL or 0.65% to 2.6706
- Heating oil increased 0.0036 USD/GAL or 0.13% to 2.8285
The above data was collected around 14:12 EST on Thursday
- Top commodity gainers: Steel (2.27%) and Lumber (3.73%), Rhodium (2.51%), Zinc (2.73%)
- Top commodity losers: Rice (-1.96%), Oat(-2.10%), Methanol(-2.48%) and Wheat(-1.72%)
The above data was collected around 14:20 EST on Thursday.
BONDS:
Japan 0.236%(+3.1bp), US 2’s 1.5399% (+0.17%), US 10’s 2.0136% (+6.84bps); US 30’s 2.2932% (+0.04%), Bunds 0.31% (+9bp), France 0.756% (+8.6bp), Italy 1.938% (+17.1bp), Turkey 20.97% (-7bp), Greece 2.447% (-1.9bp), Portugal 1.032% (+0.8bp); Spain 1.085% (+0.3bp) and UK Gilts 1.5280% (+9.5bp).
