Daily Update 14 July, 2021

Global Markets Update

U.S. equity markets closed lower overnight, with the Dow Jones down -0.3%, and both S&P 500 and NASDAQ closing -0.4% lower, as inflationary pressures remained a concern after data revealed prices paid by U.S. consumers surged in June by the most since 2008, with CPI jumping +5.4% yoy (+0.9% MoM) and core CPI rising +4.5% yoy, the largest advance since November 1991. Sentiment among U.S. small-business owners rose to an eight-month high in June as a larger share expected the economy to improve while more said they plan to expand and hire.

Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.251% and the 10-Yr yield at 1.413%.

European markets. European equity markets remained unchanged overnight, with all the Stoxx Europe 600, U.K. FTSE 100 and German DAX closing flat, with investors continuing to shift out of cyclical sectors.

Asian markets. Asian equity markets closed higher overnight, with the Shanghai Composite up +0.5%, after data revealed China’s export growth unexpectedly picked up in June, accelerating +32.2% yoy in dollar terms, and imports climbed +36.7% yoy, leaving a trade surplus of $51.5bn, the highest since January. The Hang Seng was up +1.6%, KOSPI up +0.8% and Nikkei 225 gained +0.5%.

WTI oil gained +1.7% is trading at US$75.37 a barrel, after International Energy Agency warned of a deepening supply crunch. Iron ore price is at US$209.68 per ton. Spot gold is trading at US$1,808 per oz.

ASX performance. The ASX 200 closed -0.02% lower yesterday. Australia June business confidence fell -9 pts MoM to 11, however, still remained around twice its long-run average after strengthening in early 2021.

Nearmap Ltd (NEA) surged +14.4%, after announcing its annual contract value portfolio is expected to close at A$133.8m, exceeding recently upgraded guidance. Platinum Asset Management Ltd (PTM) was down -8.3%, after reporting net outflows of A$167m for June. Incitec Pivot Ltd (IPL) gained +5.8%, after announcing it’s shifting to a regional management structure for manufacturing and confirmed that its Waggaman ammonia plant has restarted.