Global Markets Update
- U.S. equity markets closed lower overnight, with the Dow Jones down -1.6%, S&P 500 down -1.2% and NASDAQ declining -0.4%, even after confirmation that the House passed a nine-week spending bill to avert a U.S. government shutdown. U.S. initial jobless claims unexpectedly rose for a third straight week in the week ended September 25, increasing 11k to 362k, a seven-week high, led by another surge in California.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.283% and the 10-Yr yield at 1.499%.
- European markets. European equity markets closed mostly lower overnight, with the Stoxx Europe 600 flat. The U.K. FTSE 100 declined -0.3%, after BOE Governor warned that Britain’s GDP will now not recover to pre-pandemic levels until early 2022, up to two months later than anticipated in August, as staff shortages, shipping chaos and surging fuel costs are likely to cause further disruption as winter draws near. German DAX declined -0.7%, after data revealed Germany’s labor-market recovery continued at a slower pace in September with unemployment falling by 30k, keeping the jobless rate at 5.5%, however, CPI rose at the fastest pace in nearly three decades, jumping to 4.1% yoy, fueled by supply bottlenecks.
- Asian markets. Asian equity markets closed mixed overnight, with the Hang Seng down -0.4%, following a report that Beijing’s regulatory review of video game content is getting stricter. The Shanghai Composite was up +0.9%, with real estate stocks gaining after Chinese authorities urged financial institutions at a central bank meeting to help local governments stabilize the rapidly cooling housing market and protect the rights of some home buyers. KOSPI was up +0.3% and Nikkei 225 declined -0.3%. Activity in China’s factory sector contracted in September for the first time since the pandemic began with manufacturing PMI below the 50-mark.
- WTI oil is trading at US$75.02 a barrel. Iron ore price is at US$116.81 per ton. Spot gold is trading at US$1,758 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +1.88% higher yesterday.
- Beach Energy Ltd (BPT) gained +9.1%, after China’s government ordered the country’s top state-owned energy companies, from coal to electricity and oil, to secure supplies for this winter at all costs.
- Today’s trading. In Australia, commodity index data is to be published.