Global Markets Update
- U.S. equity markets closed lower overnight, with the Dow Jones down -0.9%, S&P 500 down -1.3% and NASDAQ declining -2.1%, after President Joe Biden warned that the U.S. government was at risk of breaking its legal debt limit, describing the risk as a “meteor” headed for the economy.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.280% and the 10-Yr yield at 1.481%.
- European markets. European equity markets closed lower overnight, with the Stoxx Europe 600 down -0.5%, U.K. FTSE 100 down -0.2% and German DAX declining -0.8%, as positive sentiment from the news that
EU advisory committee cleared booster shots of Pfizer Inc’s Covid-19 vaccine for all adults as well as extra doses of Moderna Inc’s for those with severely weakened immune systems, was more than offset by concerns of region’s earnings outlook from higher inflation and supply chain disruptions.
- Asian markets. Asian equity markets closed lower overnight, with the Hang Seng down -2.2%, as another Chinese developer Fantasia Holdings Group Co fell into crisis after failing to repay a maturing bond, adding to the strains of the nation’s heavily leveraged property firms following industry giant China Evergrande Group’s debt woes. Nikkei 225 was down -1.1% and both KOSPI and Shanghai Composite were closed for a holiday. Japan’s official Consumer Confidence Index rose in September to a seasonally adjusted 37.8, up from 36.7 in August and the highest reading since February 2020.
- WTI oil gained +2.3% is trading at US$77.61 a barrel, an almost seven-year high, following OPEC+’s decision to maintain a gradual supply hike of 400,000 barrel-a-day for November, even as a natural-gas crisis boosts crude demand. Iron ore price is at US$116.81 per ton. Spot gold is trading at US$1,768 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +1.29% higher yesterday.
- Commonwealth Bank of Australia Ltd (CBA) was up +5.1%, after completing A$6bn off-market buyback, buying back about 3.8% of the issued share capital, reducing CBA’s CET 1 Capital ratio by ~133bps (based upon June 30 reported capital).
- Today’s trading. In Australia, RBA’s cash rate target is to be published.