Global Markets Update
- U.S. equity markets closed lower overnight, with both the Dow Jones and S&P 500 down -0.7% and NASDAQ declining -0.6%, amid an intensifying debate on whether inflation pressures will be transitory or derail the economy, after WTI crude climbed above $80 a barrel for the first time since late 2014 as a growing power crisis from Europe to Asia boosted demand for oil ahead of winter and Aluminum, the energy-intensive metal, hit a 13-year high.
- Long-dated U.S. treasury yields were unchanged, with the 2-Yr yield at 0.318% and the 10-Yr yield at 1.612%.
- European markets. European equity markets closed mostly higher overnight, with the Stoxx Europe 600 up +0.1%, as a jump in commodity prices boosted mining and energy shares, offsetting weakness in sectors hit by inflation concerns. German DAX was flat and U.K. FTSE 100 closed +0.7% higher.
- Asian markets. Asian equity markets closed mixed overnight, with the Shanghai Composite flat, after China expanded its crackdown to banks with Chinese President Xi Jinping announcing scrutinization of Chinese financial institutions’ ties with private firms. The Hang Seng was up +2.0% and KOSPI closed -0.1% lower. Nikkei 225 gained +1.6%, after Prime Minister Fumio Kishida said he is not considering changes to the country’s capital-gains tax at present, and pledged government spending to recover from the pandemic and to build a “new capitalism” in which the benefits of economic growth are spread more widely.
- WTI oil is trading at US$80.50 a barrel. Iron ore price is at US$127.21 per ton. Spot gold is trading at US$1,754 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.28% lower yesterday, led by declines in Consumer Discretionary (-1.54%) stocks.
- Star Entertainment Group Ltd (SGR) slumped -22.9%, after the Sydney Morning Herald reported the Company has enabled suspected money laundering, organized crime and fraud at its Australian casinos for years. Fortescue Metals Group Ltd (FMG) gained +5.3%, after the Company announced it plans to build a green energy factory to rival China.
- Today’s trading. In Australia, business confidence data is to be published. In the U.S., small business optimism data is anticipated.