Global Markets Update
- U.S. equity markets closed higher overnight, after data revealed applications for U.S. state unemployment insurance fell to a fresh pandemic low in the week ended June 26 with initial jobless claims decreasing by 51,000 to 364,000. The Dow Jones was up +0.4%, S&P 500 up +0.5% and NASDAQ gained +0.1%. U.S. manufacturing continued to expand at a solid, yet slightly slower pace in June while a measure of prices paid for materials jumped to an almost 42-year high.
- Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.255% and the 10-Yr yield lower at 1.463%.
- European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 up +0.6%, with Energy stocks gaining as oil prices rose with OPEC+ producers reaching a tentative agreement to add limited supplies to the market in the coming months, and Financial stocks surging after ECB President Christine Lagarde said restrictions on dividends could be lifted in September. The U.K. FTSE 100 was up +1.2%, as the pound retreated on a cautious economic outlook from BOE’s Governor Andrew Bailey, saying the U.K.’s rapid growth surge after coronavirus lockdowns is likely to fade in the coming months. German DAX closed +0.5% higher.
- Asian markets. Asian equity markets closed lower overnight, with the Shanghai Composite down -0.1%, after PBOC drained short-term cash from the financial system as borrowing costs declined after the quarter-end. The Hang Seng was closed for a holiday, KOSPI was down -0.4% and Nikkei 225 declined -0.3%. Confidence among Japan’s large manufacturers rebounded to the highest since 2018 in 2Q21, with large firms of all types saying they plan to boost investment by nearly 10%.
- WTI oil is trading at US$74.94 a barrel. Iron ore price is at US$210.98 per ton. Spot gold is trading at US$1,776 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.65% lower yesterday, after data revealed Australia’s manufacturing sector eased expansion in June, owing to the lockdown in the state of Victoria and supply constraints.
- Regis Resources Ltd (RRL) gained +8.1%, as gold steadied after posting the biggest monthly decline in more than four years.
- Today’s trading. In the U.S., unemployment rate data is to be published.