Global Markets Update
- U.S. equity markets closed mostly higher overnight, with the Dow Jones down -0.4%, S&P 500 up +0.2% and NASDAQ gaining +1.0%, with Tech stocks climbing as the reflation trade waned.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.254% and the 10-Yr yield at 1.477%.
- European markets. European equity markets closed lower, with the Stoxx Europe 600 down -0.6%, as fresh travel curbs with popular destinations imposing fresh restrictions on U.K. travelers amid worries about a fast-spreading strain of the coronavirus, dampened hopes for a strong revival in summer tourism. German DAX was down -0.3% and U.K. FTSE 100 declined -0.9%.
- Asian markets. Asian equity markets closed mixed overnight, with the Shanghai Composite flat, as weak economic data revealing China’s industrial profit growth slowed in May, rising +36.4% yoy (vs +57% increase in prior month) was offset by reassuring comments by PBOC that
China’s economy is showing more stability and improvement even though both the domestic and overseas environments remain complex and grim, with the bank reiterating that the macro leverage ratio, or total debt as a proportion of gross domestic product, will be kept stable and vowing to match the expansion of money supply and aggregate financing in the economy with the nominal GDP growth rate. Both the Hang Seng and Nikkei 225 were down -0.1% and KOSPI closed flat.
- WTI oil is trading at US$72.68 a barrel. Iron ore price is at US$212.63 per ton. Spot gold is trading at US$1,778 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.01% lower yesterday.
- Gold Road Resources Ltd (GOR) was down -7.4%, after announcing it anticipates gold production for the 2021 calendar year to be within the lower half of guidance of 260,000-300,000 oz on a 100% basis. Webjet Ltd (WEB) declined -4.7%, amid a broader selloff in Australian travel and tourism shares after Sydney was put into a two-week lockdown to battle an outbreak of the highly contagious Delta strain of Covid-19.
- Today’s trading. In Japan, retail sales and jobless rate data is to be published.