Global Markets Update
- U.S. equity markets closed lower on Friday, with the Dow Jones down -0.9% and both S&P 500 and NASDAQ closing -0.8% lower, after data revealed U.S. consumer sentiment unexpectedly declined to a five-month low in early July with a sharp deterioration in buying conditions for big-ticket items led by mounting concerns over rising prices, with consumers expecting inflation to rise +4.8% over the next year, the highest since August 2008. U.S. retail sales rose unexpectedly in June with the value of overall retail purchases advancing +0.6% following a downwardly revised -1.7% drop in May, reflecting fairly broad gains across spending categories including solid gains at electronics and appliance outlets, clothing stores and restaurants, and wrapping up a solid quarter for household demand.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.222% and the 10-Yr yield at 1.290%.
- European markets. European equity markets closed lower on Friday, with the Stoxx Europe 600 down -0.3%, led by declines in Mining stocks after Rio Tinto Plc flagged its iron ore shipments this year are likely to be at the low end of its forecast. German DAX was down -0.6% and U.K. FTSE 100 closed -0.1% lower.
- Asian markets. Asian equity markets closed mostly lower on Friday, as Southeast Asia continued to reel from a wave of infections. The Shanghai Composite was down -0.7%, Hang Seng flat and KOSPI closed -0.3% lower. Nikkei 225 declined -1.0%, as investors mulled rising COVID-19 new infection tallies in Japan with Olympic athletes testing positive in Tokyo’s Olympic Village. The Bank of Japan kept interest rate targets at -0.1% for short-term deposits and at 0% for 10-year Japanese government bond yields, and said it would maintain quantitative-easing programs, however, downgraded its real GDP forecast for FY21 to 3.8% from 4.0%.
- WTI oil is trading at US$71.81 a barrel. Iron ore price is at US$210.39 per ton. Spot gold is trading at US$1,812 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.17% higher on Friday.
- Evolution Mining Ltd (EVN) was down -5.3%, after reporting production of 680,788 oz of gold in the 12 months through June, which was -2% below revised guidance of 695,000-710,000 oz provided to the market in April.
- Today’s trading. No major data is to be published.