Global Markets Update
- U.S. equity markets closed mostly higher overnight, with the Dow Jones up +0.6%, NASDAQ down -0.2% and S&P 500 gaining +0.2%. Prices paid by U.S. consumers climbed in July at a moderate pace with CPI increasing +0.5% MoM (+5.4% yoy) with gains in prices of food, energy, shelter and new vehicles partially offset by declining costs of airfares and auto insurance (core CPI rose +0.3% MoM and +4.3% yoy).
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.217% and the 10-Yr yield at 1.329%.
- European markets. European equity markets closed higher overnight, with both the Stoxx Europe 600 and German DAX up +0.4% and U.K. FTSE 100 closing +0.8% higher.
- Asian markets. Asian equity markets closed mostly higher overnight, with the Shanghai Composite up +0.1%, with sentiment remaining fragile after China stepped up scrutiny of the nation’s insurance technology platforms, ordering companies and local agencies to curb improper marketing and pricing practices, and step up user privacy protection, with State Council also signaling regulatory crackdown will be deep and sustained over the next five years especially in areas including national security, technological innovation as well as anti-monopoly. The Hang Seng was up +0.2%, KOSPI declined -0.7% after South Korea posted a record number of coronavirus cases, and Nikkei 225 gained +0.7%. China added new credit in July at the slowest pace since February 2020, with financial institutions offering 1.08 trillion yuan of new loans in the month (vs 2.1 trillion yuan in June), with the slowdown exacerbated by a drop in shadow banking.
- WTI oil is trading at US$69.32 a barrel. Iron ore price is at US$165.07 per ton. Spot gold is trading at US$1,752 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.29% higher yesterday. Confidence among Australian consumers weakened less than expected in early August as they remained optimistic that the economy will quickly recover from virus lockdowns in the country’s two largest cities.
- IRESS Ltd (IRE) was up +5.8%, after announcing it will back EQT’s increased takeover offer of $15.91 per share cash proposal.
- Today’s trading. In the U.S., data on PPI and jobless claims is to be published.