Asia:

Japan cannot avoid creating a supplementary budget for 2022 as part of measures to mitigate the effects of rising prices on the economy, former Prime Minister Yoshihide Suga said Sunday. His successor, Fumio Kishida, is reluctant to compile an additional budget on an early date as the new fiscal year begins this month. The government has saved a total of 5.5 trillion yen ($ 45 billion) in the initial budget for this fiscal year. Funds that have been set aside for the COVID-19 response. Official sources said last week that Japan was considering spending more than 1 trillion yen on a new economic package to mitigate the effects of rising energy and grain prices, which have become even greater since Russia’s invasion of Ukraine in February.

Major Asian stock markets had mixed days today:

  • NIKKEI 225 rose 51.51 points, or 0.19%, to 27,787.98
  • Shanghai off
  • Hang Seng off
  • The ASX 200 rose 14.20 points, or 0.19%, to 7,527.90
  • Kospi rose 1.30 points, or 0.05%, to 2,759.20
  • The Sensex fell 435.24 points, or -0.72%, to 60,176.50
  • Nifty 50 decreased by 96.00 points or -0.53% to 17,957.40

Major Asian currency markets had a green day today:

  • AUDUSD rose 0.00469 or 0.62% to 0.75901
  • NZDUSD rose 0.00118 or 0.17% to 0.69611
  • USDJPY rose 0.84 or 0.68% to 123.622
  • USDCNY rose 0.00728 or 0.11% to 6.38014

Precious Metals:

  • Gold down 8.67 USD / t oz. Or -0.45% to 1,923.77
  • Silver lost 0.094 USD / t. oz or -0.38% to 24.408

Some economic news from last night:

Japan:

Average cash income (YoY) increased from 0.9% to 1.2%

Household expenses (YoY) (February) fell to 1.1% from 6.9%

Household Expenditure (MoM) (February) fell to -2.8% from -1.2%

Employees’ overall wage income (February) increased from 1.1% to 1.2%

Overtime pay (YoY) (February) increased from 4.4% to 5.8%

Services PMI (March) increased from 44.2 to 49.4

South Korea:

FX Reserve – USD (March) from 461.77B to 457.81B

CPI (YoY) (Mar) increased from 3.7% to 4.1%

CPI (MoM) (Mar) increased from 0.6% to 0.7%

Australia:

The AIG Construction Index (Mar) rose from 53.4 to 56.5

The service PMI declined from 57.4 to 55.6

Today’s economic news

Australia:

The RBA interest rate decision (April) will remain the same at 0.10%

New Zealand:

The GlobalDairyTrade price index fell to -1.0% from -0.9%

Singapore:

Retail Sales (MoM) (February) rose -2.2% to -1.2%

Retail sales (YoY) (February) fell to -3.4% from 12.0%

EUROPE / EMEA:

The cost of living reached another record high in the eurozone last month, raising further questions about how the European Central Bank could stabilize such a fast-rising consumer price. According to preliminary data from the European Statistics Office Eurostat, released on Friday, headline inflation fell to 7.5% in March on an annualized basis. Headline inflation rose to 5.9 percent in February.

The numbers come at a time when Russia’s invasion of Ukraine has brought renewed economic uncertainty, with some economists wondering whether the eurozone will enter recession in 2022 – something European officials have so far refused to say. The eurozone has taken unprecedented measures to punish Russia for its decision to invade Ukraine – such as stopping the sale of luxury goods – and the sanctions are having an impact on the eurozone economy itself. European Central Bank President Christine Lagarde said earlier this week that “three main factors could drive up inflation.”

Europe’s major stock markets had a mixed day:

  • The CAC 40 fell 85.86 points, or -1.28%, to 6,645.51
  • The FTSE 100 rose 54.80 points, or 0.72%, to 7,613.72
  • DAX 30 fell 93.80 points, or -0.65%, to 14,424.36

Europe’s major currency markets had mixed days today:

  • EURUSD fell 0.00589 or -0.54% to 1.09155
  • GBPUSD fell 0.00263 or -0.20% to 1.30880
  • USDCHF rose 0.00302 or 0.33% to 0.92929

Today’s economic news from Europe:

France:

French industrial production (MoM) (February) fell to -0.9% from 1.8%

The French market composite PMI (March) rose from 55.5 to 56.3

The French services PMI (March) rose to 55.4 from 57.5

Spain:

The Spanish Services PMI (Mar) fell to 53.4 from 56.6

Italy:

Italy’s public deficit (Q4) fell to 3.0% from 6.3%

The Italian composite PMI (March) fell to 53.6 from 52.6

The Italian services PMI (Mar) fell to 52.1 from 52.8

Germany:

The German composite PMI (Mar) fell from 55.6 to 55.1

German services PMI (Mar) rose to 55.8 from 56.8

Eurozone:

Markit Composite PMI (Mar) decreased from 55.5 to 54.9

Services PMI (March) increased from 55.5 to 55.6

United Kingdom:

Composite PMI (March) rose from 59.9 to 60.9

The service PMI (March) increased from 60.5 to 62.6

US / Americas:

Twitter shares rose after Elon Musk announced on Monday that he had bought a 9.2% stake in the company, becoming the largest shareholder. CEO Parag Agarwal announced on Tuesday that Mask would be allowed to sit on the board. Despite recent criticism of the Conservative Voice Company’s censorship, Twitter surprisingly supports the mask.

Former Davis Federal Reserve Governor Lel Brainard said Tuesday that the central bank must act quickly to tighten policy. “Currently, inflation is much higher and there is an upward risk,” he said. “The committee is ready to take strong action if the indicators of inflation and inflation expectations indicate that such action is guaranteed.” Brainard now supports a more intensive move than the expected 25 basis points increase in the rate.

US market closed:

  • The Dow fell 280.7 points, or -0.8%, to 34,641.18
  • The S&P 500 lost 57.52 points, or -1.26%, to 4,525.12
  • The Nasdaq was down 328.39 points, or -2.26%, at 14,204.17
  • Russell 2000 lost 49.4 points, or 2.36%, to 2,046.04

Canada Market Closed:

  • The TSX Composite fell 154.77 points, or -0.7%, to 21,930.83
  • The TSX 60 fell 6.44 points, or -0.48%, to 1,329.63

Brazil market closed:

  • Bowespa fell 2,394.36 points, or -1.97%, to 118,885.15

Strength:

The oil market was mixed today:

  • Crude oil rose 0.27 USD / BBL or 0.26% to 103.550
  • Brent rose 0.22 USD / BBL or 0.20% to 107.7500
  • Natural gas rose 0.417 USD / MMBtu or 7.30% to 6.1290
  • Petrol fell 0.0193 USD / GAL or -0.60% to 3.1788
  • Heating oil decreased 0.0777 USD / GAL or -2.19% to 3.4684

The above information was collected around 13:17 EST on Tuesday

  • Top products beneficiaries: natural gas (7.30%) and soybean (1.83%), wheat (3.37%), palm oil (4.02%)
  • Top Product Losses: Platinum (-1.52%), Feeder Cattle (-1.75%), Palladium (-1.67%) and Heating Oil (-2.19%)

The above information was collected at 13:27 EST Tuesday.

Bonds:

Japan 0.214% (+ 0.5bp), US 2 2.50% (+ 0.082%), US 10 2.5543% (+ 16.1bps); 2.59% (+ 0.131%) of US 30, Bunds 0.617% (+ 10bp), France 1.153% (+ 14.4bp), Italy 2.255% (+ 17.9bp), Turkey 24.19% (+ 18bp), Greece 2.765% bp) , Portugal 1.532% (+ 16.4bp); Spain 1.626% (+ 16.7bp) and UK Gilts 1.650% (+ 8.3bp).

Market Talk – April 4, 2022

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