Stocks were up on Tuesday, ending a four-day losing streak for U.S. equities.
- During a volatile session, stocks fell early in the day before rallying and falling again in the last hour of trading.
- Since reaching a 2022 high on Jan. 3, the U.S. stock market has lost $11.7T in value.
- The current 10 Year U.S. Treasury yield is set at 3.69180%
Retail spending shows signs of decline, a bad omen for the Canadian economy.
- Overall retail sales fell by 0.5% from October to November 2022.
- Sales of electronics were down 1%, clothing dropped 0.6%, sporting goods lost 0.5%, and music fell by 0.5%.
- Sales of fast food, beverages, and groceries increased.
Stocks in Europe fell during a volatile trading session on Tuesday.
- The Stoxx 600 lost 0.4% on the day, with almost all sectors finishing in the red.
- The automotive industry was the worst performing, falling 1.5%.
- The banking industry gained 1.7%.
|Euro STOXX 50
|UK (FTSE 100)
|France (CAC 40)
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Stocks in Asia were down after the Bank of Japan increased its target range for the 10-year government bond yield.
- The bank kept its interest rates at -0.10%, surprising some investors.
- The bank said it will remain committed to its 2% inflation target despite concerns about the health of the economy and the Yen.
- The Bank of Japan has offered to purchase 600 billion yen in short-maturity government bonds.
|S&P Asia 50
|Japan (Nikkei 225)
|South Korea (KOSPI)
|China (Hang Seng)
Oil prices rose slightly on Tuesday despite a positive economic outlook due to concerns that winter storms in North America would cause a decline in travel.
- Brent was up 0.2% and U.S. West Texas Intermediate rose 1.5%.
- A surge in COVID-19 cases in China and bad weather in North America suggest a drop in oil demand in the coming weeks.
- A softer U.S. Dollar and the U.S.’s plan to restock its petroleum reserves created upward pressure on oil prices.
Currency Exchange Rates
The Japanese Yen hit a four-month high as markets responded positively to policy tweaks by the Bank of Japan that lifted the yield on 10-year government bonds.
- The Yen had the best single-day rise in 24 years.
- The U.S. Dollar was down on the day, losing against all six other major fiat currencies.
- Investors estimate that the U.S. Dollar could fall to 125 Yen in the coming months, from around 132, as the Bank of Japan continues to support the currency.
|Canada (Canadian Dollar)
Crypto markets rose on Tuesday despite Auros Global saying that a court in the British Virgin Islands has granted the crypto trading firm a Provisional Liquidation.
- Auros Global claims that it can’t satisfy recalls from lenders because the collapse of FTX in early November led to a lack of immediate liquidity.
- Since then, the firm has been trying to restructure its debt.
- According to a court filing, Auros has over $20M in funds on FTX that have been frozen amid FTX’s ongoing bankruptcy proceedings.
- Auros believes that it will be able to resume normal operations after a restructuring.
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