Global Markets Update
- U.S. equity markets closed mostly lower overnight, with the Dow Jones up +0.2%, S&P 500 down -0.3% and NASDAQ closing -0.7% lower, as Fed Chair Jerome Powell’s persistent dovishness raised concern about the sustainability of the economic recovery. U.S. June industrial production rose +0.4% MoM after rising +0.7% in May. Applications for U.S. state unemployment insurance fell to a fresh pandemic low in the week ended July 10 with initial claims decreasing by 26,000 to 360,000.
- Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.225% and the 10-Yr yield lower at 1.299%.
- European markets. European equity markets closed lower overnight, with the Stoxx Europe 600 down -0.9% and German DAX closing -1.0% lower. The U.K. FTSE 100 declined -1.1%, after data which revealed U.K. companies added payrolls at a record pace in June with vacancies exceeding their pre-pandemic level, prompted BOE to steps up debate about cutting stimulus as soon as next month.
- Asian markets. Asian equity markets closed mostly higher overnight, with the Shanghai Composite up +1.0%, Hang Seng up +0.8%, KOSPI up +0.7% and Nikkei 225 declining -1.2%. China’s economic rebound steadied in 2Q21 with GDP expanding +7.9% yoy, down from +18.3% yoy in 1Q21, however, growth remained strong in June with industrial output rising +8.3% yoy, retail sales expanding +12.1% yoy and jobless rate remaining unchanged at 5%.
- WTI oil declined -2.2% is trading at US$71.55 a barrel, after OPEC forecast supplies will continue to climb, remaining well above the group’s current output and exceeding pre-virus levels by 2H22, but will go through a lull in 1Q22 that could see the global market return to surplus. Iron ore price is at US$212.25 per ton. Spot gold is trading at US$1,829 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.26% lower yesterday. Australian unemployment tumbled to a 10-year low in June with the jobless rate falling -20bps MoM to 4.9% as the economy added 29,100 roles, driven by full-time positions, with the participation rate remaining at 66.2%.
- ARB Corp Ltd (ARB) was up +7.2%, after announcing it sees its FY21 profit before tax within the range of A$145-150m.
- Today’s trading. In the U.S., retail sales data is to be published.