Daily Update 30 June, 2021

Global Markets Update                                                        

  • U.S. equity markets closed mixed overnight, as stocks struggled to find direction amid concern over elevated valuations and the spread of a highly infectious coronavirus strain. Both the Dow Jones and S&P 500 closed flat and NASDAQ gained +0.2%. U.S. consumer confidence soared in June to a fresh pandemic high, however, consumers also expected inflation to pick up in the coming year.
  • Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.250% and the 10-Yr yield at 1.473%.
  • European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 up +0.3%, after data revealed confidence in the euro-area economy improved to the highest level in more than two decades in June, driven by surging optimism in services, though industry, retail trade and construction also improved. German DAX was up +0.9% and U.K. FTSE 100 gained +0.2%. U.K. house prices grew at their fastest annual pace for more than 17 years in June as buyers rushed to seal deals in time to benefit from a government tax break.
  • Asian markets. Asian equity markets closed lower overnight, on concerns the infectious Delta virus variant could assuage global economic recovery. The Hang Seng was down -0.9%, following a rainstorm that cancelled the morning session. The Shanghai Composite was down -0.9% and KOSPI closed -0.5% lower. Nikkei 225 declined -0.8%, after data revealed virus restrictions in Japan continued to weigh on the labor market in May, with the jobless rate increasing for a second month and hitting 3% amid rising unemployment among women. Japanese retail sales fell -0.4% MoM in May, with higher spending on food and beverages more than offset by declining purchases of cars and general merchandise. 
  • WTI oil is trading at US$73.41 a barrel. Iron ore price is at US$212.63 per ton. Spot gold is trading at US$1,762 per oz.

ASX Market Update

  • ASX performance. The ASX 200 closed -0.08% lower yesterday.
  • Metcash Ltd (MTS) was up +5.7%, after announcing off-market share buyback of up to ~A$175m.
  • Today’s trading. In Australia, private sector credit data is to be published. In the U.S., employment data is anticipated.