Global Markets Update
- U.S. equity markets closed lower overnight, with both the Dow Jones and NASDAQ down -0.7% and S&P 500 closing -0.9% lower, after data revealed applications for U.S. state unemployment insurance edged up in the week ended July 3, though remained near a pandemic low, with initial claims increasing by 2,000 to 373,000, as the labor market grinds its way toward a full recovery.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.192% and the 10-Yr yield at 1.291%.
- European markets. European equity markets tumbled the most in nearly two months with the Stoxx Europe 600 down -1.7%, as investors shifted out of this year’s winners of the reopening trade amid concerns over economic growth and stimulus. Both the U.K. FTSE 100 and German DAX closed -1.7% lower, after the World Health Organization urged caution on reopening worldwide.
- Asian markets. Asian equity markets closed lower overnight, with the Shanghai Composite down -0.8% and Hang Seng declining -2.9%, as Beijing’s latest crackdown hits the technology giants. KOSPI closed -1.0% lower, as daily virus cases in South Korea hit a new high. Nikkei 225 declined -0.9%, after Japanese Prime Minister Yoshihide Suga declared a fourth state of emergency for Tokyo, running from July 12 through August 22.
- WTI oil gained +1.3% and is trading at US$73.13 a barrel, after a U.S. government report showed rapidly declining inventories and record-high fuel demand in the midst of the peak summer travel season. Iron ore price is at US$217.24 per ton. Spot gold is trading at US$1,803 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.20% higher yesterday, led by gains in Consumer Staples (+1.05%) stocks.
- ZIP Co Ltd (Z1P) surged +13.7%, following a report that a strategic investor has acquired about a 4% stake in the Company. Seven Group Holdings Ltd (SVW) was up +4.4%, after securing more than a third of Boral’s shares.
- Today’s trading. In China, CPI and PPI data is to be published. In the U.K., industrial production data is anticipated.