Daily Update 6 July, 2021

Global Markets Update

U.S. equity markets remained closed for a holiday in observance of Independence Day.

Long-dated U.S. treasury yields were unchanged, with the 2-Yr yield at 0.234% and the 10-Yr yield at 1.424%.

European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 up +0.3%, amid upbeat economic data which revealed the Eurozone composite PMI climbed to 59.5 in June, the highest since June 2006 and the fourth consecutive month of expansion. The U.K. FTSE 100 was up +0.6% and German DAX closed +0.1% higher.

Asian markets. Asian equity markets closed mixed overnight, with the Hang Seng down -0.6%, led by declines in Tech stocks after China expanded its latest crackdown on the technology industry beyond Didi Global Inc to include two other companies that recently listed in New York, ordering all three companies to halt new user registrations and ordering app stores to remove Didi’s service from their platforms. The Shanghai Composite was up +0.4% and KOSPI closed +0.3% higher. Nikkei 225 declined -0.6%, as mixed local election results with Japanese Prime Minister Yoshihide Suga’s party gaining seats in a Tokyo assembly vote but his ruling bloc failing to score a majority, damped investor enthusiasm. A gauge of China’s services industry slowed sharply in June following virus outbreaks in some parts of the country and weaker new orders, with reduced confidence hitting the job market.

WTI oil gained +1.6% and is trading at US$76.36 a barrel,
after OPEC+ abandoned its meeting without a deal, tipping the cartel into crisis and leaving the oil market facing tight supplies and rising prices. Iron ore price is at US$214.25 per ton. Spot gold is trading at US$1,792 per oz.

Sydney Airport Ltd (SYD) surged +33.9%, after receiving a A$22.3bn takeover offer from a group including IFM Investors, valuing SYD at $8.25 per share. Tabcorp Holdings Ltd (TAH) was down -4.4% after announcing that it intends to undertake a demerger of its Lotteries & Keno business.