Global Markets Update
- U.S. equity markets closed mostly higher overnight, as solid economic data which revealed U.S. companies added more jobs in June than expected with 692,000 gain in private payrolls, tempered concern about high valuations. The Dow Jones was up +0.6%, S&P 500 up +0.1% and NASDAQ declined -0.2%.
- Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.251% and the 10-Yr yield lower at 1.461%.
- European markets. European equity markets closed lower overnight, with the Stoxx Europe 600 down -0.8%, amid broader reopening concerns due to the more contagious Delta variant of Covid-19. German DAX was down -1.0% and U.K. FTSE 100 closed -0.7% lower. Euro-zone inflation cooled in June with CPI rising +1.9% yoy, down from a more than two-year high of 2% in May. German joblessness slid for a second straight month in June, falling 38,000, putting the total number of unemployed at 2.69 million with unemployment rate of 5.9%.
- Asian markets. Asian equity markets closed mixed overnight, with the Shanghai Composite up +0.5%, after data revealed China’s manufacturing output continued to expand in June, with both input and output prices of manufacturers falling significantly, as the government clamps down on surging raw material costs. The Hang Seng was down -0.6% and KOSPI closed +0.3% higher. Nikkei 225 declined -0.1%, after data revealed Japan’s factory output slid sharply in May, falling -5.9% MoM, as semiconductor shortages dented car production and manufacturers of all kinds pulled back amid yet another round of restrictions to contain the coronavirus.
- WTI oil is trading at US$73.53 a barrel. Iron ore price is at US$210.98 per ton. Spot gold is trading at US$1,770 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.16% higher yesterday.
- AGL Energy Ltd (AGL) slumped -10.0%, after announcing it aims to complete work to split off its coal-fired power plants into a separate unit within 12 months.
- Today’s trading. In Australia, trade balance data is to be published. In the U.S., jobless claims and PMI data is anticipated. In China and the U.K., we get PMI data.