US markets

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%

Canadian markets

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.

European markets

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%.

Asian markets

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.

Commodities

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.

Cryptocurrency

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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