Global Markets Update
- U.S. equity markets closed mostly higher overnight, with the Dow Jones down -0.2% and both S&P 500 and NASDAQ gaining +0.1%, after data revealed applications for U.S. state unemployment benefits dropped for a fourth consecutive week to a fresh pandemic low with initial jobless claims dropping 29k to 348k in the week ended August 14 and continuing claims falling to 2.8m in the week ended August 7, also the lowest since the pandemic began.
- Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.220% and the 10-Yr yield lower at 1.24%.
- European markets. European equity markets closed lower overnight, with the Stoxx Europe 600 down -1.5%, as luxury stocks tumbled after Chinese state media said President Xi Jinping offered an outline for “common prosperity” that puts some of the country’s wealthiest citizens on notice. German DAX was down -1.3% and U.K. FTSE 100 declined -1.5%.
- Asian markets. Asian equity markets closed lower overnight, with the Shanghai Composite down -0.6% and Hang Seng declining -2.1%, as the rout in Chinese technology giants deepened, after industry was hit with a fresh round of proposed regulations with China announcing it is studying proposals to further ensure the rights of drivers who work for online companies and to step up oversight of the live streaming industry, and Tencent warned the industry to prepare for more regulations including potential substantial changes to how companies use data for advertising. KOSPI was down -1.9% and Nikkei 225 declined -1.1%.
- WTI oil is trading at US$64.08 a barrel. Iron ore price is at US$157.95 per ton. Spot gold is trading at US$1,781 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.50% lower yesterday. Australia’s labor market softened in July, despite the jobless rate falling -30bps MoM to 4.6%, driven mainly by a fall in the participation rate, the lowest level since 2008, as an outbreak of the delta variant of coronavirus shuttered Sydney and saw hours falling and under-employment climbing.
- NRW Holdings Ltd (NWH) surged up +17.4%, after guiding to an increase in FY22 operating Ebit and revenue. Chorus Ltd (CNU) gained +14.2%, after the NZCC’s draft decision valued CNU’s fiber network at NZ$5.4bn.
Today’s trading. In Japan, CPI data is to be published