Market Talk – April 4, 2022


Chinese Vice Premier Hu Jintao on Saturday called for greater efforts to stabilize foreign trade in a complex external environment, state news agency Xinhua reported. Commerce Minister Wang Wentao said in March that China’s economy has faced multiple challenges at home and abroad this year, including “huge” pressures from global trade uncertainty and still domestic use of scarcity.

China’s five largest banks say the country’s lenders have faced multiple headwinds this year, including epidemics, global politics and internal turmoil in the real estate industry. The Industrial and Commercial Bank of China has warned that China faces “shrinking demand, supply disruptions and weak expectations” in its annual earnings report. Agricultural Bank of China Limited has given the same indication in its full year report. Four out of five lenders have reduced the non-performing loan ratio, although it has increased in the BoC.

HDFC Bank, India’s largest private lender, is buying its largest shareholder in a 40 billion deal, creating a financial services titan to better tap the country’s largest, growing credit demand. HDFC Bank’s agreement with housing finance firm HDFC Limited, which owns about 21% of the lender, will build its 68 million customers and significantly expand its home loan portfolio as it opens up greater lending opportunities. Shares of HDFC Bank closed up 10% on Monday, giving the firm a market value of Rs 9.18 trillion ($ 121.66 billion), while HDFC Ltd rose 9.3% to Rs 4.85 trillion. JPMorgan, Goldman Sachs and Citi were among HDFC Bank’s financial advisers for the deal, while Credit Suisse, Kotak Securities and Jefferies were among HDFC Limited’s advisers.

Indian carmakers on Friday forecast sharp growth in annual sales for FY 2022, but warned of future risks of disruption to the global supply chain. Automakers around the world have been forced to cut sharply over the past year as supply chain disruptions and rising demand for consumer electronics have led to a severe shortage of semiconductors. As a result, car buyers have to wait a long time.

Major Asian stock markets had a green day today:

  • NIKKEI 225 rose 70.49 points, or 0.25%, to 27,736.47. Shanghai closed. Hang Seng rose 462.76 points, or 2.10%, to 22.502.31. • Nifty rose 50 382.95 points or 2.17% to 18,053.40

Major Asian currency markets had a green day today:

  • AUDUSD rose 0.00443 or 0.59% to 0.75418
  • NZDUSD rose 0.00362 or 0.52% to 0.69581
  • USDJPY rose 0.243 or 0.20% to 122.790
  • USDCNY rose 0.0087 or 0.14% to 6.37563

Precious Metals:

  • Gold rose 6.84 USD / t oz or 0.36% to 1,931.14. Silver declined 0.119 USD / t. oz or -0.48% to 24.492

Some economic news from last night:


The financial base (YoY) has increased from 7.6% to 7.9%


MI Inflation Meter (MoM) rose 0.5% to 0.8% ANZ Job Advertising (MoM) 10.9% to 0.4% Retail Sales (MoM) rose 1.6% to 1.8%

Today’s economic news


The Nikkei Markit Manufacturing PMI (Mar) fell to 54.0 from 54.9


Manufacturing PMI (March) fell to 50.1 from 50.2


Investor sentiment in the eurozone fell to a two-year low in April, a survey on Monday showed, pointing to the beginning of the recession in the second quarter of 2022. The Sentix index for the eurozone fell to -18.0 in April – 7.0 in the previous month, the lowest level since July 2020. A Reuters poll pointed to reading -9.2. A current state index has dropped from 7.8 to -5.5, its lowest level since April last year, while an expectation index has dropped from -20.8 to -29.8, its lowest level since December 2011. Sentiks says global morale is declining, though nowhere else in the eurozone.

With more signs of weakening business confidence in the UK economy, more companies expect international orders to drive future growth in line with their domestic demand. A quarterly survey of more than a thousand companies with a turnover of at least 1 million that trades abroad named 37% of foreign markets as sources of growth, with only 34% citing the UK market. This is the first time since the start of Santander UK trade barometer research in 2017 that overseas markets have overtaken the domestic market as the company’s main driver of growth.

Europe’s major stock markets had a green day:

  • The CAC 40 rose 47.06 points, or 0.70%, to 6,731.37
  • The FTSE 100 rose 21.02 points, or 0.28%, to 7,558.92
  • The DAX 30 rose 71.68 points, or 0.50%, to 14,518.16

Europe’s major currency markets had mixed days today:

  • EURUSD 0.00761 or -0.69% down 1.09724 • GBPUSD 0.00094 or -0.07% down 1.31040 • USDCHF 0.00108 or 0.12% up 0.92655

Today’s economic news from Europe:


German exports (MoM) (February) increased from -2.8% to 6.4% German imports (MoM) (February) increased from -4.2% to 4.5% German trade balance (February) increased from 9.4B to 11.5B


The French government’s budget balance (February) fell from -15.9B to -37.6B.


Spanish unemployment rises from -11.4K to -2.9K eurozone:

Sentix Investor Confidence (April) decreased from -7.0 to -18.0

US / Americas:

Shares of Twitter rose 20% in pre-market trading after announcing the purchase of a 9.2% stake in billionaire Elon Musk Company. Musk now owns 8 2.89 billion or 73,486,938 shares in the social media giant. Musk often uses the social media platform himself and boasts 80 million followers. Interestingly, in recent weeks he has been a fierce critic of Twitter, spreading rumors that they may be shopping in the future.

President Biden has expanded the US position on the war in Ukraine after calling President Putin a “war criminal.” Biden said he wanted to see Putin accountable for his actions and would punish Russia with further sanctions. The president did not say what sanctions would be imposed. He says the United States will continue to supply arms to Ukraine in exchange for money.

Jamie Damon, CEO of JPMorgan Chase, announced at the annual shareholder meeting that he was ready for a recession in the economy during the Russia-Ukraine war. “They present a completely different situation from what we’ve experienced in the past – and their mating could dramatically increase the risk ahead,” Dimon said, adding that investors should be “prepared for potential negative consequences.” Although he is not concerned about JPMorgan’s relationship with Russia, Dimon said the company would lose about $ 1 billion over time because of the sanctions. “In addition to the uncertainty surrounding the war and the uncertainty surrounding the global supply chain, this creates a potentially explosive situation,” Dimon said.

US market closed:

  • The Dow is up 103.61 points, or 0.3%, at 34,921.88
  • The S&P 500 rose 36.78 points, or 0.81%, to 4,582.64
  • The Nasdaq is up 271.05 points, or 1.9%, at 14,532.55
  • Russell 2000 is up 4.33 points, or 0.21%, at 2,095.44

Canada Market Closed:

  • The TSX Composite advanced 132.65 points, or 0.6%, to 22,085.6
  • TSX 60 advanced 9.5 points, or 0.72%, to 1,336.07

Brazil market closed:

  • Bowespa fell 290.64 points, or -0.24%, to 121,279.51


The oil market was a green day today:

  • Crude oil rose 2.69 USD / BBL or 2.71% to 101.9600 • Brent rose 2.21 USD / BBL or 2.12% to 106.6000 • Natural gas rose 0.064 USD / MMBtu or 1.12% rose Heating oil rose 0.0861 USD / GAL or 2.51% rose 3.5101

The above information was collected on Monday around 12:23 EST

  • Top Product Gainers: Crude Oil (2.71%) and Hot Oil (2.51%), Rubber (3.38%), Cotton (2.45%) Hogs (-1.60%) and cheese (-1.39%)

The above information was collected around 13:34 EST on Monday.


Japan 0.210% (- 0.5bp), US 2 2.46% (-0.004%), US 10 2.408% (+ 1.85bps); 2.47% (+ 0.034%) of US 30, Bunds 0.51% (-5.6bp), France 1.018% (-0.2bp), Italy 2.095% (-0.2bp), Turkey 23.73% (-11bp), Greece 2.605% ( -11bp) 7.7bp), Portugal 1.397% (-0.2bp); Spain 1.487% (+ 0.2bp) and UK Gilts 1.551% (-6bp).

Market Talk – April 1, 2022

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