Global Markets Update
- U.S. equity markets closed lower overnight, with the Dow Jones down -0.8%, S&P 500 down -0.7% and NASDAQ declining -0.9%, amid poor economic data revealing U.S. retail sales fell in July by more than forecast with the value of overall retail purchases dropping -1.1% MoM (excluding autos, sales decreased -0.4% MoM), reflecting a steady shift in spending toward services and indicating consumers may be growing more price conscious as inflation picks up. Production at U.S. factories strengthened in July by the most in four months, rebounding above pre-pandemic levels, with manufacturing production increasing +1.4% and total industrial production, which also includes mining and utility output, rising +0.9% MoM.
- Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.213% and the 10-Yr yield lower at 1.262%.
- European markets. European equity markets closed mostly higher overnight, with the Stoxx Europe 600 up +0.1%, after data revealed
Euro-area businesses stepped up hiring during 2Q21 which saw employment increase +0.5% qoq (+1.8% yoy) vs -0.2% qoq (-1.8% yoy) decline in 1Q21, leading to the economy expanding +2% qoq (+13.6% yoy). German DAX closed flat. The U.K. FTSE 100 gained +0.4%, after data revealed U.K. job market improved in 2Q21 with wage growth hitting a record (average earnings surged +8.8% yoy) and the unemployment rate falling -10bps to 4.7%, the lowest since the summer of 2020.
- Asian markets. Asian equity markets closed lower overnight, with the Shanghai Composite down -2.0% and Hang Seng down -1.7%, after China’s State Administration for Market Regulation issued a set of draft rules banning unfair competition among online platform operators and rules to protect key network facilities and information systems, effective next month. Nikkei 225 was down -0.4% and KOSPI closed -0.9% lower.
- WTI oil is trading at US$66.79 a barrel. Iron ore price is at US$159.54 per ton. Spot gold is trading at US$1,785 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.94% lower yesterday.
- Magellan Financial Group Ltd (MFG) slumped -10.2%, after reporting FY21 adjusted net profit of A$412.7m, down -5.8% y/y, that came in below consensus estimate of A$434m.
- Today’s trading. In the U.S., housing starts data is to be published.