Global Markets Update
- U.S. equity markets closed higher overnight, however, gains were kept in check as investors remained concerned about the spread of the delta variant and a slowdown in vaccination rates which saw confirmed cases in the U.S. soar +47% in the week ending Sunday, the largest weekly rise since April 2020. The Dow Jones was up +0.4%, S&P 500 up +0.3% and NASDAQ closed +0.2% higher.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.227% and the 10-Yr yield at 1.368%.
- European markets. European equity markets hit a record high overnight, amid ECB President Christine Lagarde’s comments that fresh measures might be brought in next year to support the euro-area economy after the current emergency bond program ends. The Stoxx Europe 600 was up +0.7%, with gains in Real Estate stocks partially offset by declines in Banks after ECB signaled it could take steps to ensure that lenders avoid paying excessive dividends later this year. The U.K. FTSE 100 was flat and German DAX closed +0.7% higher.
- Asian markets. Asian equity markets closed higher overnight, with the Shanghai Composite up +0.7%, with investor sentiment buoyed by China’s move to an easy monetary policy. The Hang Seng was up +0.6% and KOSPI closed +0.9% higher. Nikkei 225 gained +2.2%, after data revealed Japan’s business optimism reached a 12-year record-high in June with businesses expecting COVID-19 vaccination programs to blunt the pandemic. Japan’s PPI rose +5% yoy (+0.6% MoM) in June.
- WTI oil is trading at US$74.17 a barrel. Iron ore price is at US$209.68 per ton. Spot gold is trading at US$1,805 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.83% higher yesterday, led by gains in Metals & Mining (+2.19%) stocks following a rally in base metal prices.
- NRW Holdings Ltd (NWH) surged +12.0%, after entering into an agreement to sell 38 major mobile mining assets owned by its subsidiary Golding to Boggabri Coal for $81m.
- Today’s trading. In Australia, business conditions and confidence data is to be published. In the U.S., CPI and small business optimism data is anticipated.