Global Markets Update
- U.S. equity markets closed mixed on Friday, with both the Dow Jones and NASDAQ flat and S&P 500 gaining +0.2%. U.S. consumer sentiment fell in early August to the lowest level in nearly a decade as Americans grew more concerned about the economy’s prospects, inflation and the recent surge in coronavirus cases, risking a more pronounced slowing in economic growth in coming months should consumers rein in spending.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.207% and the 10-Yr yield at 1.277%.
- European markets. European equity markets posted their tenth straight record, the longest winning streak since the 1999 dotcom era, amid optimism over economic growth and robust earnings. The Stoxx Europe 600 was up +0.2% and German DAX up +0.3%. The U.K. FTSE 100 gained +0.4%, after data revealed the U.K. is slowly emerging from the latest wave of the pandemic, even after the government pushed ahead with an almost full reopening of the economy last month with virus reproduction numbers indicating Covid-19 is in retreat in five of England’s seven regions and in the nation as a whole.
- Asian markets. Asian equity markets closed lower on Friday, with the Shanghai Composite down -0.2%, Hang Seng down -0.5%, KOSPI declining -1.2% and Nikkei 225 closing -0.1% lower. Hong Kong raised its economic growth forecast for 2021, with the city now projecting GDP growth of 5.5-6.5% in the year, compared with an earlier range of 3.5-5.5%.
- WTI oil declined -0.9% and is trading at US$68.44 a barrel, after the IEA cut forecasts for global oil demand “sharply” for the rest of this year, lowering estimates for consumption in 2H21 by 550,000 barrels a day as the resurgent pandemic hits major consumers, and predicted a new surplus in 2022. Iron ore price is at US$163.11 per ton. Spot gold is trading at US$1,780 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.54% higher on Friday.
- Downer EDI Ltd (DOW) was up +5.2%, after reporting FY21 net income of A$181.6m vs loss of A$150.3m y/y.
- Today’s trading. In China, industrial production and retail sales data is to be published. In Japan, GDP and industrial production data is anticipated.