Global Markets Update
- U.S. equity markets closed mostly lower overnight, amid concerns over a $20bn wave of U.S. block trades that roiled the region’s banking and financial services sectors, and warning of “impending doom” by CDC as cases and deaths began to rise again in the country. The S&P 500 was down -0.1%, Dow Jones up +0.3% and NASDAQ declined -0.6%.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.141% and the 10-Yr yield at 1.708%.
- European markets. European equity markets closed mostly higher overnight, with the Stoxx Europe 600 up +0.2%, UK FTSE 100 down -0.1% and German DAX gaining +0.5%, as investor sentiment was lifted after data from U.S. Centers for Disease Control revealed, Covid-19 vaccines from Pfizer Inc and Moderna Inc effectively prevented coronavirus infections, not just illness, with substantial protection evident two weeks after the first dose. U.K. mortgage approvals fell -9.9% month-on-month in February to 87,669.
- Asian markets. Asian equity markets closed mixed overnight, with the Shanghai Composite up +0.5%, Hang Seng flat, Nikkei 225 up +0.7% and KOSPI closing -0.2% lower. IMF raised its growth outlook for the South Korean economy to +3.6% in 2021 from prior estimate of +3.1%, citing strong outbound shipments, the country’s strong macroeconomic fundamentals, effective public health response and fiscal, monetary and financial measures amid the pandemic.
- WTI oil is trading at US$61.60 a barrel. Iron ore price is at US$155.56 per ton. Spot gold is trading at US$1,711 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.36% lower yesterday. According to Australian Prudential Regulation Authority, Australia’s bank loans that are having repayments deferred has dropped to about 0.5% at the end of February from about 10% in May 2020, and non-performing loans continue to remain very low.
- South32 Ltd (S32) was up +3.3%, after announcing the transfer of shareholding in South32 SA Coal to Seriti Resources is now expected to complete following the end of the March 2021 quarter.
- Today’s trading. In Japan, data on employment and retail sales is to be published