Global Markets Update
- U.S. equity markets closed mostly higher overnight, with the Dow Jones flat and both NASDAQ and S&P 500 gaining +0.3%, after data revealed applications for U.S. state unemployment benefits dropped for the third week in a row with initial jobless claims declining 12k to 375k in the week ended August 7. Prices paid to U.S. producers rose more than expected in July, with PPI increasing +1% Mom (+7.8% yoy) and core PPI rising +1% MoM, a second-month of record gains. U.S. home prices rose the most on record in 2Q21 with median price of an existing single-family home jumping +23% yoy, as buyers battled for a scarcity of listings.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.223% and the 10-Yr yield at 1.361%.
- European markets. European equity markets closed mostly higher overnight, with the Stoxx Europe 600 up +0.1%, German DAX up +0.7% and U.K. FTSE 100 declining -0.4%. The British economy swung back into growth in 2Q21, growing +4.8% qoq (+22.2% yoy) vs -1.6% qoq (-6.1% yoy) contraction in 1Q21, as consumers spent heavily on restaurants, hotels and transport, leaving the economy only 2.2% smaller than pre-pandemic level, with BOE forecasting the lost output from new rise in infection rates will return by the end of this year.
- Asian markets. Asian equity markets closed lower overnight, as rising virus cases across the region and China’s moves to regulate businesses, with the country releasing a five-year blueprint calling for greater regulation of vast parts of the economy, weighing on sentiment. The Shanghai Composite was down -0.2%, Hang Seng down -0.5% and KOSPI declined -0.4%. Nikkei 225 declined -0.2%, after Tokyo reported 4,989 new virus cases with a member of a Tokyo Metropolitan Government coronavirus advisory panel of experts warning it is now impossible to control the spread of Covid-19 in the capital.
- WTI oil is trading at US$68.96 a barrel. Iron ore price is at US$165.07 per ton. Spot gold is trading at US$1,753 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.05% higher yesterday.
- GrainCorp Ltd (GNC) surged +11.7%, after upgrading FY21 underlying Ebitda forecast to A$310-330m from A$255-285m.
- Today’s trading. No major data is to be published.