Key Market Insights October 12

9 min read

US Markets

Stocks were down on Monday as the Nasdaq hit a new two-year low, with investors concerned about rising interest rates.

  • Jamie Dimon, CEO of JPMorgan, claimed that the U.S. will likely fall into a severe recession in 2023.
  • President Biden introduced limits on the ability of U.S. companies to sell advanced semiconductors, as well as chips manufacturing equipment, to China.
  • The current 10 Year U.S. Treasury yield is set at 3.88950%
Market Price Move
Dow Jones 29,202.88 -0.32%
S&P 500 3,612.39 -0.75%
Nasdaq 10,542.10 -1.04%
Russell 2000 1,691.92 -0.60%

 

Canadian Markets

Markets in Canada were closed on Monday for Thanksgiving. I had the opportunity, however, to dig into the job figures released by Statistics Canada on Friday and wanted to share some of the industry-specific movements.

  • Jobs in finance, insurance, and real estate have seen the least growth in the last year, up less than 2.5%
  • Manufacturing jobs are up by 4.7% in the last year, showing that the country is producing more than it did during that pandemic.
  • Retail jobs are up 7% in the last year, demonstrating the recovering of the market post pandemic.
Market Price Move
TSX 18,583.13 -2.09%

 

European Markets

European stocks were down on Monday as the negative sentiment brought about by the U.S. jobs report last week continues to ripple through markets.

  • The Stoxx 600 was down 0.25% on the day. Tech stocks led the losses, falling 1.7%.
  • Retail stocks were the best performing, gaining 1.7%.
  • After markets closed, Russia launched missiles targeting Kyiv and other major Ukrainian cities, a sign that the war in Ukraine is escalating, which would negatively impact European
Market Price Move
Euro STOXX 50 3,356.88 -0.55%
UK (FTSE 100) 6,959.31 -0.45%
Germany (DAX) 12,272.94 -0.00%
France (CAC 40) 5,840.55 -0.45%

 

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Asian Markets

Stocks in Asia were down on Monday, with Chinese stocks leading losses following the introduction of U.S. exporting restrictions on semiconductors.

  • Semiconductor Manufacturing International Corporation in China fell by over 5%, Hua Hong Semiconductor lost over 10%, and Shanghai Fudan Microelectronics Company plunged nearly 25%.
  • The Hang Seng tech index was down almost 4% on the day.
  • Markets in Japan, Taiwan, Malaysia, and South Korea were closed for a holiday.
Market Price Move
S&P Asia 50 3,916.34 -3.82%
Japan (Nikkei 225) 27,116.11 -0.71%
South Korea (KOSPI) 2,232.84 -0.22%
China (Hang Seng) 17,216.66 -2.95%
India (SENSEX) 57,991.11 -0.34%

 

Commodities

Oil prices fell on Monday amid fears of an impending global recession. This was despite the increased violence in Ukraine, which could lead to a further decline in supply.

  • Brent crude was down 0.7%, with U.S. West Texas Intermediate down 0.4%.
  • Data showed that services activity is contracting in China, which could lead to lower oil demand.
  • There are signs that Saudi Arabia plans to continue to service Asia in full, and would only cut oil exports to Europe and North America.
Market Price Move
Oil (NYSEARCA:OIL) 32.02 -1.65%
Gold (NYSEARCA:GLD) 155.48 -1.52%
Silver (NYSEARCA:SLV) 18.09 -2.22%
Corn (NYSEARCA:CORN) 27.77 1.50%
Lumber (NASDAQ:WOOD) 67.50 1.73%

 

Currency Exchange Rates

The U.S. Dollar rose for the fourth consecutive trading day on Monday as investors continued to believe that inflation and jobs data will prompt the Fed to increase interest rates again.

  • U.S. inflation data for September will be released on Thursday and analysts expect an inflation rate of 8.1%.
  • The U.S. Dollar Index was up 0.3% on Monday and is currently at 113.14, slightly below its 20-year high of 114.78 from September.
  • The British Pound was down despite the Bank of England announcing it would double its previous plan to buy bonds to stabilize the currency.
Market Price Move
UK(GBP) £0.90 0.26%
Europe (EURO) €1.03 0.37%
Canada (Canadian Dollar) $1.38 0.30%
Japan (Yen) ¥145.73 0.25%

 

Cryptocurrency

Bitcoin and the cryptocurrency market as a whole were down on Monday as investors expect that the inflation data on Thursday will encourage the Federal Reserve to further increase interest rates.

  • Blockwater Technologies, a South Korean crypto investment firm, has defaulted on a $3.4M loan to TrueFi.
  • USDC is back below a $50B market cap after surging following Terra’s collapse, which caused users to move into other stablecoins.
  • The EU’s crypto licensing regulation was approved in a commitee vote and, if passed by the European Parliament, would take effect in 2024, bringing clear rules to protect investors and ensure market stability, which could lead to higher crypto adoption.
Market Price Move
Bitcoin $19,234.90 -0.95%
Ethereum $1,304.27 -1.45%
Litecoin $53.19 -1.39%
Bitcoin Cash $113.19 -3.29%

 

Good trading,
Chris Svorcik

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