Global Markets Update
- U.S. equity markets closed lower on Friday, with the Dow Jones down -0.5% and both S&P 500 and NASDAQ declining -0.9%. U.S. consumer sentiment rose slightly in early September but remained close to a near-decade low, while buying conditions deteriorated to their worst since 1980 because of high prices.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.222% and the 10-Yr yield at 1.362%.
- European markets. European equity markets closed lower on Friday, with both the Stoxx Europe 600 and U.K. FTSE 100 down -0.9% and German DAX declining -1.0%, after the ECB Governing Council member Martins Kazaks said the euro area’s inflation outlook may turn out higher than currently anticipated if the coronavirus doesn’t inflict any further shocks. U.K. retail sales volumes (including autos fuel) fell -0.9% MoM in August, marking the first run of four consecutive months of decline since comparable records began in 1996.
- Asian markets. Asian equity markets closed higher on Friday, with the Shanghai Composite up +0.2%, with sentiment boosted after China injected more cash into its banking system with PBOC adding 90bn yuan of funds on a net basis through seven-day and 14-day reverse repurchase agreements, and Chinese Premier Li Keqiang’s announcement that the government will continue efforts to stabilize commodity prices using a variety of measures and macro-level policies will be calibrated precisely to the requirements of local businesses. The Hang Seng gained +1.0%, after China’s top regulators defended their market-roiling crackdown on various industries in a meeting with Wall Street executives, while reassuring them the stricter rules aren’t aimed at stifling technology companies or the private sector. Nikkei 225 was up +0.6% and KOSPI closed +0.3% higher.
- WTI oil is trading at US$71.97 a barrel. Iron ore price is at US$117.94 per ton. Spot gold is trading at US$1,754 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.76% lower on Friday.
- IRESS Ltd (IRE) slumped -10.7%, after advising that discussions with EQT have concluded and that the parties have been unable to agree to a transaction and the pact has been terminated.
- Today’s trading. No major data is to be published.