Global Markets Update
- U.S. equity markets closed mostly lower overnight, with both the Dow Jones and S&P 500 down -0.2% and NASDAQ gaining +0.1%, after data saw applications for U.S. state unemployment benefits rose in the week ended Sep 11 with initial jobless claims increasing 20k to 332k, as Hurricane Ida continues to throw a wrench in the labor market’s broad recovery. U.S. retail sales rose unexpectedly in August with value of overall retail purchases climbing +0.7% MoM, as a pickup in purchases across most categories more than offset weakness at auto dealers.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.217% and the 10-Yr yield at 1.336%.
- European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 up +0.4% and both German DAX and U.K. FTSE 100 gaining +0.2%.
- Asian markets. Asian equity markets closed lower overnight, with the Shanghai Composite down -1.3%, led by declines in real estate stocks as fear that China Evergrande Group’s debt woes may spill over into Chinese property sector intensified after Evergrande’s onshore property unit suspended bond trading for a day. The Hang Seng was down -1.5%, Nikkei 225 down -0.6% and KOSPI closed -0.7% lower. Gains in Japanese exports slowed more than expected in August with the value of Japan’s overseas shipments increasing +26.2% yoy a delta-driven wave of the coronavirus weighed on the global trade recovery and supply chain blockages crimped auto shipments, however, imports growth increased to +44.7% yoy, leaving a trade deficit of 635.4bn yen.
- WTI oil is trading at US$72.59 a barrel. Iron ore price is at US$128.18 per ton. Spot gold is trading at US$1,754 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.58% higher yesterday. Australia’s labor market softened in August with employment dropping by 146,300 and unemployment rate falling -10bps MoM to 4.5%, as the participation rate slid -80bps to 65.2%.
- Incitec Pivot Ltd (IPL) gained +4.4%, after announcing it has not identified any material hurricane-related damage to its Waggaman ammonia plant in Louisiana.
- Today’s trading. In the U.K., retail sales data is to be published.