Daily Update 15 October, 2021

Global Markets Update                                              

  • U.S. equity markets closed higher overnight, with the Dow Jones up +1.6%, and both S&P 500 and NASDAQ gaining +1.7%, as inflation concerns were eased after data revealed prices paid to U.S. producers rose in September at the slowest pace of the year with PPI increasing +0.5% MoM (+8.6% yoy) and core PPI rising +0.2% MoM (+6.8% yoy) amid cooling costs of services including airfares. Applications for U.S. state unemployment benefit fell to the lowest since March 2020 in the week ended October 9, with initial jobless claims totalling 293,000, a decrease of 36,000 from the prior week.
  • Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.362% and the 10-Yr yield lower at 1.514%.
  • European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 up +1.2% and U.K. FTSE 100 up +0.9%, led by gains in energy stocks as oil rallied after IEA said shortages of natural gas in Europe and Asia are boosting demand for oil, deepening what was already a sizable supply deficit in crude markets. German DAX gained +1.4%.
  • Asian markets. Asian equity markets closed mostly higher overnight, with the Shanghai Composite down -0.1%, both KOSPI and Nikkei 225 up +1.5% and Hang Seng remaining closed for a holiday. China’s factory-gate prices grew at the fastest pace in almost 26 years in September with PPI climbing +10.7% yoy, however, consumer goods factories remained reluctant to pass higher input costs to customers, which saw consumer prices growing at a slower pace of +0.7% yoy, leading to gap between producer and consumer inflation increasing +130bps MoM to 10%, the widest level since 1993.
  • WTI oil is trading at US$81.43 a barrel. Iron ore price is at US$129.27 per ton. Spot gold is trading at US$1,797 per oz.

ASX Market Update

  • ASX performance. The ASX 200 closed +0.54% higher yesterday. Australia’s labor market softened in September with employment falling 138,000 in the month, edging up unemployment rate by +10bps MoM to 4.6%.
  • Netwealth Group Ltd (NWL) surged +15.6%, after boosting its FUA net inflows forecast for the full year to A$12.5bn from A$10bn.
  • Today’s trading. In the U.S., retail sales data is to be published.