Global Markets Update
- U.S. equity markets closed lower overnight, with the Dow Jones down -2.1%, S&P 500 down -1.6% and NASDAQ closing -1.1% lower. Confidence among U.S. homebuilders pulled back in July to an 11-month low as builders contend with elevated materials prices and ongoing supply shortages.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.214% and the 10-Yr yield at 1.192%.
- European markets. European equity markets closed lower overnight, with the Stoxx Europe 600 down -2.3% and German DAX declining -2.6%. The U.K. FTSE 100 closed -2.3% lower, as Covid-19 cases in the U.K. rose the most in the world.
- Asian markets. Asian equity markets closed mostly lower overnight, with the Shanghai Composite flat, amid rising tensions between the White House and China after the U.S., U.K. and their allies formally attributed the Microsoft Exchange hack to actors affiliated with the Chinese government and accused Beijing’s leadership of a broad array of malicious cyber activities. The Hang Seng was down -1.8%, as President Joe Biden warned U.S. firms about the risks of doing business in Hong Kong. Nikkei 225 declined -1.3%, as eroding public support for Prime Minister Yoshihide Suga ahead of an election later this year weighed on investor sentiment, with a Kyodo poll showing that his cabinet’s support rate fell to 35.9%, the lowest since he took power last September. KOSPI declined -1.0%.
- WTI oil declined -8.1% and is trading at US$71.81 a barrel, after OPEC+ agreed to boost production into 2022, pledging to add 400,000 barrels a day each month from August until all halted output is revived. 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 -0.85% lower yesterday, with the spread of the highly contagious delta variant continuing to weigh on risk assets.
- Oil Search Ltd (OSH) declined -5.2%, after revealing CEO Dr. Keiran Wulff has resigned for health reasons.
- Today’s trading. In Australia, minutes from RBA’s June policy meeting are to be published.