Global Markets Update
- U.S. equity markets closed higher overnight, with both the Dow Jones and S&P 500 up +0.4% and NASDAQ closing +0.1% higher, after the U.S. Senate voted to move ahead with a broad infrastructure package, after a bipartisan group of senators and the White House reached an agreement on a $550bn plan. Applications for U.S. state unemployment fell in the week ended July 24, with initial jobless claims declining 24k to 400k. U.S. growth missed forecasts in 2Q21, with GDP expanding at a +6.5% annualized rate following a revised +6.3% pace in 1Q21 as the effects of supply-chain constraints reverberated through the economy and took the shine off one of the biggest gains in consumer spending in decades with personal consumption increasing an annualized +11.8%, the second-largest advance since 1952.
- Long-dated U.S. treasury yields were mixed, with the 2-Yr yield flat at 0.202% and the 10-Yr yield higher at 1.263%.
- European markets. European equity markets closed higher overnight, with both the Stoxx Europe 600 and German DAX up +0.5%. The U.K. FTSE 100 closed +0.9% higher, after data revealed the number of jobs supported by the U.K. government furlough program fell to the lowest level since the start of the pandemic as the economy took a further step toward normality.
- Asian markets. Asian equity markets closed higher overnight, with the Shanghai Composite up +1.5%, after authorities intensified efforts to calm fears about a crackdown on the private education industry and as the central bank pumped liquidity into the financial system, pumping in a net 20bn yuan of liquidity with seven-day reverse repurchase agreements. The Hang Seng was up +3.3%, KOSPI up +0.2% and Nikkei 225 gained +0.7%.
- WTI oil is trading at US$73.51 a barrel. Iron ore price is at US$194.90 per ton. Spot gold is trading at US$1,828 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.52% higher yesterday.
- IRESS Ltd (IRE) surged +13.9%, after announcing plans to more than double Npat by 2025, announcing on-market share buy-back of up to $100m and confirming it is in talks with EQT after rejecting A$15.30-15.50/shr bid.
- Today’s trading. In Australia, PPI data is to be published.