Global Markets Update
- U.S. equity markets closed mostly higher overnight, with both the Dow Jones and S&P 500 up +0.1% and NASDAQ closing -0.2% lower, after Fed announced the pace of the U.S. recovery picked up in the past two months, however, economic recovery still hasn’t progressed enough to begin scaling back asset purchases. Prices paid to U.S. producers rose in June with PPI increasing +7.3% yoy (+1% MoM) and core PPI rising +1% MoM, the most on record, and +5.6% yoy.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.225% and the 10-Yr yield at 1.348%.
- European markets. European equity markets closed mostly lower overnight, with the Stoxx Europe 600 down -0.1% and German DAX closing flat. The U.K. FTSE 100 declined -0.5%, after data revealed U.K. inflation unexpectedly accelerated to the highest level in three years in June with CPI climbing +2.5% yoy, with BOE’s Deputy Governor commenting inflation may peak at double the targeted level in the U.K., indicating monetary policy might need tightening.
- Asian markets. Asian equity markets closed lower overnight, as pandemic concerns resurfaced as Indonesia’s daily cases surpassed India’s, marking a new virus epicenter for the region, cases in Malaysia and South Korea reaching record highs, Tokyo seeing the most cases since January and Singapore reporting its most daily infections since April 2020. The Shanghai Composite was down -1.1%, after U.S. extended Trump-era halt to economic dialogue with China. The Hang Seng was down -0.6%, KOSPI down -0.2% and Nikkei 225 declined -0.4%.
- WTI oil declined -3.3% is trading at US$72.74 a barrel, after UAE made significant progress in resolving its standoff with OPEC+, nearing a compromise that could give it a more generous output limit next year and allowing the whole group to pump more oil in the coming months. Iron ore price is at US$212.25 per ton. Spot gold is trading at US$1,828 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.31% higher yesterday, after data revealed Australia’s July consumer confidence gained +1.5% MoM.
- Zip Co Ltd (Z1P) slumped -11.4%, following the news Apple Inc is teaming up with Goldman Sachs to move into the buy-now pay-later space.
- Today’s trading. In Australia, employment data is to be published.