Daily Market Update 22/11/2022

“The US dollar weakened against its peers this morning and Treasury yields declined. Meanwhile, companies across Europe are looking to sell bonds after months of turbulence in the markets as investors start warming up to riskier debts.”

Main Headlines

The Biden administration announced preliminary approval to spend up to $1.1 billion to help keep California’s last operating nuclear power plant running. The Energy Department said it was creating a path forward for the Diablo Canyon Power Plant on California’s central coast to remain open. The plant was chosen in the first round of funding for the administration’s new civil nuclear credit program, intended to bail out financially distressed owners or operators of nuclear power reactors. The program is part of Biden’s effort to cut planet-warming greenhouse gas emissions in half by 2030, compared with 2005 levels.

UK public sector borrowing rose last month as the government’s measures to shield households and businesses from soaring energy prices took effect. Public sector net borrowing was £13.5bn in October, £4.4bn more than in the same month last year and the fourth highest October borrowing figure since monthly records began in 1993, according to data published by the Office for National Statistics on Tuesday. Government measures including the energy bills support scheme, the energy price guarantee, and the energy bill relief scheme, came into effect last month to help businesses and consumers with soaring energy costs.


European shares advanced, boosted by oil majors as crude prices recovered. US futures gained as investors parsed comments from Federal Reserve officials to assess the potential for slower interest rate hikes. The Stoxx Europe 600 Index climbed 0.7%, with Shell Plc and BP Plc among the biggest drivers of the gains. Contracts on the S&P 500 and the Nasdaq 100 were both higher, reversing earlier losses. In US premarket trading, Zoom Video Communications Inc. fell after reporting slower sales and trimming its full-year revenue forecast.


Sterling is well bid against most major currencies overnight. One of Europe’s leading meat companies is to build a £100mn production facility in the UK as the country’s appetite for bacon surges. Danish Crown will build the plant in Rochdale, north of Manchester, creating more than 300 jobs in the second half of next year. The government’s flagship “Brexit freedoms” bill, intended to purge swaths of EU law from the British statute book, has been slammed by official experts, who warned that an impact assessment signed off by ministers was “not fit for purpose.”


Euro is stronger against the dollar and weaker against sterling this morning. Italy’s new right-wing government signed off on its first budget today, a package focusing on curbing sky-high energy bills and cutting taxes from next year for payroll workers and the self-employed. German industrial production is on track to rise slightly this year thanks to order backlogs but the outlook for 2023 is gloomy as high energy prices and geopolitical uncertainties hurt businesses, the BDI industry association said today.


The dollar is weaker than most major currencies in the early morning trade. The US, fresh from reversing its 30 years of opposition to a “loss and damage” fund for poorer countries suffering the worst impacts of the climate crisis, has signalled that its longstanding image as global climate villain should now be pinned on China. US vice-president, Kamala Harris, visited the Philippine Island of Palawan on the edge of the disputed South China Sea in a bold demonstration of how Washington and Manila are reinvigorating their security alliance as they guard against an increasingly assertive Beijing.

Ballinger & Co. Market Analysis– 22nd November 2022

Today’s Market Rates

Today’s Interbank Rates at 09:25 am against sterling movement.

GBP>EUR – 1.1538

GBP>USD – 1.1844

EUR>USD – 1.0274

GBP>CAD – 1.5838

GBP>AUD – 1.7850

GBP>SEK – 12.648

GBP>AED – 4.3548

GBP>HKD – 9.2640

GBP>ZAR – 20.507

GBP>CHF – 1.1340

Today’s Highlights

·        8:00 a.m.: UK Oct. Public Finances

·        10:00 a.m.: ECB’s Holzmann speaks

·        11:00 a.m.: OECD Economic Outlook

·        11:15 a.m.: ECB’s Rehn speaks

·        2:00 p.m.: Hungary rate decision

·        4:00 p.m.: Euro-area Nov. Consumer Confidence

·        5:00 p.m.: Fed’s Mester speaks

·        7:00 p.m.: ECB’s Nagel speaks

·        8:15 p.m.: Fed’s George speaks

·        8:45 p.m.: Fed’s Bullard speaks


This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited/Manor House Foreign eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.


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