Daily Update 13 October, 2021

Global Markets Update                                                  

  • U.S. equity markets closed lower overnight, with the Dow Jones down -0.3%, S&P 500 down -0.2% and NASDAQ declining -0.1%. Sentiment among U.S. small-business owners fell to lowest since March in September as owners grew more pessimistic about the economy amid ongoing labor and supply chain challenges.
  • Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.340% and the 10-Yr yield lower at 1.570%.
  • European markets. European equity markets closed lower overnight, after IMF downgraded global growth for 2021 by -10bps to 5.9% (with U.S. down -100bps to 6%, euro area up +40bps to 5%, China down -10bps to 8%, India unchanged at 9.5%, U.K. down -20bps to 6.8% and Japan down -40bps to 2.4%) and forecast growth of 4.9% in 2022 and about 3.3% over the next few years beyond 2022, however, revised inflation expectations higher with consumer inflation in rich countries rising by 2.8% in 2021 (up +40bps) and 2.3% in 2022. The Stoxx Europe 600 was down -0.1% and U.K. FTSE 100 declined -0.2%. German DAX fell -0.3%, after data revealed German investor confidence declined for a fifth month in October. U.K. companies pushed the number of workers on payrolls above pre-coronavirus levels in September with payrolls climbing by a record 207k.
  • Asian markets. Asian equity markets closed lower overnight, with the Shanghai Composite down -1.2%, amid worries over rising contagion risk from the debt crisis at Evergrande Group with Chinese real estate firm Sinic Holdings Group Co warning of imminent default on dollar bond. Both the Hang Seng and KOSPI were down -1.4% and Nikkei 225 declined -0.9%.
  • WTI oil is trading at US$80.52 a barrel. Iron ore price is at US$131.42 per ton. Spot gold is trading at US$1,761 per oz.

ASX Market Update

  • ASX performance. The ASX 200 closed -0.26% lower yesterday. Australian business confidence surged in September to highest since May.
  • CSL Ltd (CSL) was up +1.8%, after reaffirming FY22 revenue growth (in CC) of 2-5% and NPAT (in CC) of $2.15-2.25bn. Westpac Banking Corp (WBC) was down -1.6%, after flagging a hit of A$1.3bn to its reported 2H21 net profit. 
  • Today’s trading. In Australia, consumer confidence data is to be published.