Global Markets Update
- U.S. equity markets closed lower overnight, with both the Dow Jones and S&P 500 down -1.1% and NASDAQ declining -0.9%, amid geopolitical concerns prompted by the Taliban’s takeover of Afghanistan. Federal Reserve signaled that a decision on a reduction of its massive bond-buying program could happen in 2021, with minutes from Fed’s July policy meeting revealing that most officials agreed they could start tapering this year as they had hit their inflation goal and were closer to reaching their standard for progress on reducing unemployment.
- Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.216% and the 10-Yr yield flat at 1.262%.
- European markets. European equity markets closed mostly higher overnight, with the Stoxx Europe 600 up +0.1% and German DAX closing +0.3% higher. The U.K. FTSE 100 declined -0.2%, led by declines in Miners as BHP Group Plc fell amid worries about plans to scrap its dual-listing structure. U.K. inflation eased in July, with CPI falling back to the +2% yoy goal for the first time since April, easing from a +2.5% yoy increase in June.
- Asian markets. Asian equity markets closed higher overnight, with the Shanghai Composite up +1.1%, both Hang Seng and KOSPI up +0.5% and Nikkei 225 closing +0.6% higher. Japan’s export recovery showed signs of peaking in July with the value of overseas shipments increasing +37% yoy, smallest since March, with shipments to China and Europe especially of cars losing strength amid a global resurgence of the coronavirus and global chip shortages, and imports increased +28.5% yoy, leading to trade balance of 441bn yen.
- WTI oil is trading at US$64.78 a barrel. Iron ore price is at US$157.95 per ton. Spot gold is trading at US$1,786 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.12% lower yesterday.
- Pro Medicus Ltd (PME) surged +15.7%, after reporting FY21 EBIT of $42.7m, up +43% y/y, driven by the implementation of a series of major contract wins and further operating leverage. Domino’s Pizza Enterprises Ltd (DMP) was up +7.1%, after reporting FY21 net income of A$184.0m, up +33% y/y.
- Today’s trading. In Australia, employment data is to be published.