Global Markets Update
- U.S. equity markets closed mostly higher overnight, with the Dow Jones up +0.5%, NASDAQ down -0.5% and S&P 500 gaining +0.1%, however, sentiment remained fragile amid virus concerns with new coronavirus cases in the U.S. surging to the highest weekly level since early February, while deaths increasing the most since December. Sentiment among U.S. small-business owners fell more than expected in July as owners turned increasingly downbeat on future sales and the economy.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.234% and the 10-Yr yield at 1.346%.
- European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 gaining +0.3% and climbing to the seventh straight record high as earnings optimism offset concerns about stimulus tapering. The U.K. FTSE 100 was up +0.4% and German DAX closed +0.2% higher. Investor confidence in Germany’s recovery dropped to the lowest level since late last year in August, after a rise in infection rates stoked concerns over a possible tightening of pandemic curbs. U.K. retailers reported their slowest sales growth in five months during July with the volume of goods sold in shops and online growing +6.4% yoy, as consumers shifted toward spending on entertainment and social gatherings and away from in-store shopping.
- Asian markets. Asian equity markets closed mostly higher overnight, with the Shanghai Composite up +1.0%, Hang Seng up +1.2% and KOSPI closing -0.5% lower. Nikkei 225 gained +0.2%, after data revealed Japanese corporate bankruptcies fell -39.67% yoy in July to 476 cases.
- WTI oil is trading at US$68.41 a barrel. Iron ore price is at US$170.90 per ton. Spot gold is trading at US$1,729 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.32% higher yesterday. Australia’s business conditions and confidence deteriorated sharply in July, with the latter now back in negative territory, as outbreaks in the country prompted lockdowns.
- Ramelius Resources Ltd (RMS) declined -5.9%, as the precious metal remained under pressure.
- Today’s trading. In the U.S., data on CPI, MBA mortgage applications and monthly budget is to be published.