ASIA:
India’s central bank, the Reserve Bank of India, seeking to arrest the rupee’s slide, is asking local banks to not build additional positions in the non-deliverable forward market, a move that could lead to offshore volatility spilling into local markets, bankers and traders said. The build-up of positions in this segment of the market is forcing the RBI to spend more reserves to defend the rupee, one of the bankers said. The RBI had probably assessed that the NDF was “nullifying the impact of their intervention,” and was increasing liquidity in the forward market, both of which it does not want, Reuters reported.
The major Asian stock markets had a negative day today:
- NIKKEI 225 decreased 159.41 points or -0.60% to 26,237.42
- Shanghai decreased 9.15 points or -0.30% to 3,016.36
- Hang Seng decreased 311.92 points or -1.87% to 16,389.11
- Kospi decreased 39.60 points or -1.80% to 2,162.87
- ASX 200 decreased 4.90 points or -0.07% to 6,642.60
- SENSEX decreased 390.58 points or -0.68% to 57,235.33
- Nifty50 decreased 109.25 points or -0.64% to 17,014.35
The major Asian currency markets had a mixed day today:
- AUDUSD increased 0.00240 or 0.37% to 0.62980
- NZDUSD increased 0.00340 or 0.60% to 0.56398
- USDJPY increased 0.462 or 0.31% to 147.197
- USDCNY decreased 0.00040 or -0.01% to 7.17424
Precious Metals:
- Gold decreased 6.24 USD/t oz. or -0.37% to 1,666.27
- Silver decreased 0.184 USD/t. oz or -0.97% to 18.876
Some economic news from last night:
Japan:
Bank Lending (YoY) (Sep) increased from 1.9% to 2.3%
PPI (MoM) (Sep) increased from 0.4% to 0.7%
PPI (YoY) (Sep) increased from 9.4% to 9.7%
Australia:
MI Inflation Expectations remain the same at 5.4%
No economic news from today:
EUROPE/EMEA:
Germany’s finance minister said on Thursday that fighting inflation was the government’s biggest priority and demanded reforms that would lift Europe’s largest economy out of an imminent downturn. In blunt remarks, Lindner said Germany had slipped behind other countries because it was especially vulnerable to Europe’s energy crisis and supply chain disruptions and had complacently believed in its own economic strength. The latest forecasts suggest Germany is on the brink of recession, and the central bank sees inflation staying above 7% next year, pushed up by rocketing gas prices due to an energy standoff between the West and Russia over Ukraine.
The major Europe stock markets had a green day:
- CAC 40 increased 60.72 points or 1.04% to 5,879.19
- FTSE 100 increased 24.12 points or 0.35% to 6,850.27
- DAX 30 increased 183.32 points or 1.51% to 12,355.58
The major Europe currency markets had a green day today:
- EURUSD increased 0.00684 or 0.70% to 0.97756
- GBPUSD increased 0.02101 or 1.89% to 1.13110
- USDCHF increased 0.00214 or 0.21% to 0.99944
Some economic news from Europe today:
Germany:
German CPI (MoM) (Sep) increased from 0.3% to 1.9%
German CPI (YoY) (Sep) increased from 7.9% to 10.0%
German HICP (MoM) (Sep) increased from 0.4% to 2.2%
German HICP (YoY) (Sep) increased from 8.8% to 10.9%
Swiss:
PPI (YoY) (Sep) decreased from 5.5% to 5.4%
PPI (MoM) (Sep) increased from -0.1% to 0.2%
US/AMERICAS:
Treasury Secretary Janet Yellen claims that the US economy is still strong amid the global economic turndown. She called the economy “very resilient” and stated that the latest jobs report is a positive, despite the Federal Reserve stating that unemployment must rise. Yellen also said that a strong dollar is favorable for the US. “The dollar is a safe haven, so when times are uncertain, we experience capital inflows into our safe markets,” Yellen said. “And all of those things are pushing up the dollar vis a vis a broad range of countries.”
US Market Closings:
- Dow advanced 827.87 points or 2.83% to 30,038.72
- S&P 500 advanced 92.88 points or 2.6% to 3,669.91
- Nasdaq advanced 232.05 points or 2.23% to 10,649.15
- Russell 2000 advanced 40.65 points or 2.41% to 1,728.41
Canada Market Closings:
- TSX Composite advanced 407.35 points or 2.24% to 18,613.63
- TSX 60 advanced 26.18 points or 2.38% to 1,125.31
Brazil Market Closing:
- Bovespa declined 526.03 points or -0.46% to 114,300.09
ENERGY:
The oil markets had a green day today:
- Crude Oil increased 1.672 USD/BBL or 1.92% to 88.942
- Brent increased 2.277 USD/BBL or 2.46% to 94.727
- Natural gas increased 0.2544 USD/MMBtu or 3.95% to 6.6894
- Gasoline increased 0.0642 USD/GAL or 2.44% to 2.6945
- Heating oil increased 0.1549 USD/GAL or 3.94% to 4.0877
The above data was collected around 15:33 EST on Thursday
- Top commodity gainers: Heating Oil (3.94%), Natural Gas (3.95%), Brent (2.46%) and Cocoa (2.63%)
- Top commodity losers: Coal (-1.98%), Orange Juice (-2.10%), Coffee (-3.86%) and Palm Oil (-1.90%)
The above data was collected around 15:44 EST on Thursday.
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BONDS:
Japan 0.25%(+0bp), US 2’s 4.47% (+0.181%), US 10’s 3.9517% (+4.97bps); US 30’s 3.94% (+0.051%), Bunds 2.300% (-4.6bp), France 2.865% (-8.9bp), Italy 4.673% (-14.4bp), Turkey 13.11% (+66p), Greece 4.934% (-8.7bp), Portugal 3.392% (-5.3bp); Spain 3.453% (-8.4bp) and UK Gilts 4.194% (-23.5bp).
