Market Talk – January 25, 2021

Posted Jan 25, 2021 by Martin Armstrong |

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ASIA:

The major Asian stock markets had a mixed day today:

NIKKEI 225 increased 190.84 points or 0.67% to 28,822.29
Shanghai increased 17.49 points or 0.48% to 3,624.24
Hang Seng increased 711.16 points or 2.41% to 30,159.01
ASX 200 increased 24.30 points or 0.36% to 6,824.70
Kospi increased 68.36 points or 2.18% to 3,208.99
SENSEX decreased 530.95 points or -1.09% to 48,347.59
Nifty50 decreased 133.00 points or -0.93% to 14,238.90

The major Asian currency markets had a mixed day today:

AUDUSD decreased 0.00004 or -0.01% to 0.77115
NZDUSD increased 0.00163 or 0.23% to 0.71962
USDJPY increased 0.03 or 0.03% to 103.78
USDCNY decreased 0.01007 or -0.15% to 6.48683

Precious Metals:

Gold increased 3.33 USD/t oz. or 0.18% to 1,855.88
Silver increased 0.052 USD/t. oz or 0.21% to 25.453

Some economic news from last night:

Indonesia：

Foreign Direct Investment (YoY) (Q4) increased from 1.10% to 5.50%

Some economic news from today:

Singapore:

CPI (YoY) (Dec) increased from -0.1% to 0.0%

EUROPE/EMEA:

The major Europe stock markets had a negative day:

CAC 40 decreased 87.21 points or -1.57% to 5,472.36
FTSE 100 decreased 56.22 points or -0.84% to 6,638.85
DAX 30 decreased 230.02 points or -1.66% to 13,643.95

The major Europe currency markets had a mixed day today:

EURUSD decreased 0.00274 or -0.23% to 1.21437
GBPUSD decreased 0.00098 or -0.07% to 1.36712
USDCHF increased 0.00303 or 0.34% to 0.88804

Some economic news from Europe today:

Germany：

German Business Expectations (Jan) decreased from 93.0 to 91.1

German Current Assessment (Jan) decreased from 91.3 to 89.2

German Ifo Business Climate Index (Jan) decreased from 92.2 to 90.1

US/AMERICAS:

Foreign investment fled the US for China in 2020, according to data from the United Nations released over the weekend. Overseas investments in the US declined 49% last year. Comparatively, China saw a 4% increase in foreign investments during 2020. This marks the first time in decades that the US is not considered the number one safe haven for international investment.

The US House of Representatives voted to proceed with impeachment hearings against former-President Trump for allegedly inciting the Capital siege. The split Senate will begin proceedings on February 9. This is the first time in the nation’s history that a leaving president had been impeached by the House, twice.

Close to 18% of American renters are currently behind on rent payments, as reported by CNBC. The Center for Disease Control and Prevention’s (CDC) rent moratorium was extended until March, which may bring slight relief to 10 million Americans. President Biden’s $1.6 trillion coronavirus relief plan, if passed, would provide $25 billion in rental relief and extend the moratorium until September 2021.

Mexican President Andres Manuel Lopez Obrador tested positive for coronavirus over the weekend. The president described his symptoms as midland said he is under medical care. The 67-year-old has underlying health conditions and previously suffered a heart attack. Lopez Obrador reportedly called Putin early on Monday and expressed interest in obtaining Russia’s Sputnik V vaccination for his country. An emergency shipment of the vaccination is expected to process.

US drug maker Merck & Co has abandoned plans to develop a coronavirus vaccine after citing an inferior immune response compared to vaccinations from Pfizer and Moderna. The company will not begin testing an oral antiviral treatment. Still, other drugs makers such as Johnson & Johnson and AstraZeneca are continuing the race to develop a new vaccine. Dr. Anthony Fauci said he anticipates Johnson & Johnson to receive emergency use approval in as little as two weeks.

US Market Closings:

Dow declined 36.98 points or -0.12% to 30,960
S&P 500 advanced 13.89 points or 0.36% to 3,855.36
Nasdaq advanced 92.93 points or 0.69% to 13,635.99
Russell 2000 declined 5.49 points or -0.25% to 2,163.27

Canada Market Closings:

TSX Composite advanced 60.11 points or 0.34% to 17,906.02
TSX 60 advanced 2.22 points or 0.21% to 1,060.79

Brazil Market Closing:

Bovespa declined 948.5 points or -0.8% to 117,380.49

ENERGY:

The oil markets had a green day today:

Crude Oil increased 0.27 USD/BBL or 0.52% to 52.5400
Brent increased 0.27 USD/BBL or 0.49% to 55.6800
Natural gas increased 0.114 USD/MMBtu or 4.66% to 2.5600
Gasoline increased 0.0151 USD/GAL or 0.98% to 1.5638
Heating oil increased 0.0145 USD/GAL or 0.92% to 1.5905

Top commodity gainers: Natural Gas (4.66%), Wheat (2.56%), Canola (3.00%) and Tin (2.51%)
Top commodity losers: Palm Oil (-1.65%), Rubber (-28.40%), Orange Juice (-1.80%), and Oat (-0.80%)

The above data was collected around 13:32 EST on Monday.

BONDS:

Japan 0.04%(-0bp), US 2’s 0.12%(-0.004%), US 10’s 1.04%(-5bps); US 30’s 2.00%(-0.07%), Bunds -0.51% (+3bp), France -0.28% (+0bp), Italy 0.66% (-5bp), Turkey 12.85% (-5bp), Greece 0.68% (-2bp), Portugal 0.05% (-3bp); Spain 0.08% (-4bp) and UK Gilts 0.26% (-5bp).