Global Markets Update
- U.S. equity markets closed higher overnight, with the Dow Jones up +0.7% and both S&P 500 and NASDAQ gaining +0.8%. The UN expects the global economy to undergo its fastest recovery in almost five decades this year, with world GDP surging +5.3% in 2021 due to “radical” policy interventions and a successful vaccine rollout in advanced economies, however, warned deepening inequities between advanced and developing countries threaten to undermine this.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.209% and the 10-Yr yield at 1.301%.
- European markets. European equity markets closed lower overnight, with the Stoxx Europe 600 down -0.8% and German DAX down -0.7%. The U.K. FTSE 100 fell -0.2%, as the pound gained after data revealed U.K. inflation surged more than expected to the strongest pace in more than nine years in August with CPI up +3.2% yoy, prompting investors to anticipate a sharper increase in interest rates in 2022.
- Asian markets. Asian equity markets closed mostly lower overnight, with the Shanghai Composite down -0.2%, after data revealed China’s economy took a knock in August from stringent virus controls and tight curbs on property, which saw retail sales growth slowing to +2.5% yoy (vs +8.5% yoy in July) and industrial production increasing +5.3% yoy (vs +6.4% yoy in July), and construction investment contracting -3.2% in the eight months of the year, a reflection of the government’s steady tightening of property restrictions as part of a campaign against financial risk. The Hang Seng was down -1.8%, led by declines in tech stocks following a report that China will accelerate the drafting and implementation of Internet rules to protect minors, Nikkei 225 down -0.5% and KOSPI closed +0.1% higher.
- WTI oil is trading at US$72.64 a barrel. Iron ore price is at US$128.18 per ton. Spot gold is trading at US$1,794 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.27% lower yesterday.
- Pilbara Minerals Ltd (PLS) was up +8.4%, after the Company unveiled the results of its second spodumene concentrate auction held via the Battery Material Exchange, with the highest bid almost doubling that of its July tender.
- Today’s trading. In Australia, employment data is to be published.