Daily Update 22 September, 2021

Global Markets Update

U.S. equity markets closed mostly lower overnight, with the Dow Jones down -0.1%, with Walt Disney Co being the biggest drag after the Company forecast slower subscriber growth in 4Q21 and announced dividends won’t return until pandemic ends. The S&P 500 was down -0.1% and NASDAQ gained +0.2%. U.S. housing starts rose by more than expected in August with residential starts rising +3.9% to a 1.62 million annualized rate, driven by multifamily projects, though backlogs continued to weigh on construction.

Long-dated U.S. treasury yields were mixed, with the 2-Yr yield lower at 0.214% and the 10-Yr yield higher at 1.323%.

European markets. European equity markets closed higher overnight, after OECD said global economy is growing faster than expected as it regains the levels it had before the height of the coronavirus pandemic a year ago, forecasting global economic growth of 5.7% in 2021 and 4.5% in 2022. The Stoxx Europe 600 was up +1.0%, German DAX up +1.4% and U.K. FTSE 100 closed +1.1% higher.

Asian markets. Asian equity markets closed mixed overnight, with the Hang Seng up +0.5%, however, sentiment remained weak amid China Evergrande Group’s liquidity crisis with the Group missing interest payments due Monday to at least two of its largest bank creditors and S&P announcing the developer is on the brink of default. The Nikkei 225 declined -2.2%, and both Shanghai Composite and KOSPI remained closed for a holiday.

WTI oil is trading at US$70.65 a barrel. Iron ore price is at US$117.94 per ton. Spot gold is trading at US$1,774 per oz.

ASX performance. The ASX 200 closed +0.35% higher yesterday. According to minutes from RBA’s September meeting, the outbreak of the Delta variant had interrupted the recovery in a manner that was more severe than expected a month earlier, with GDP expected to decline materially in the September quarter.

AusNet Services Ltd (AST) gained +9.7%, after APA Group trumped Brookfield Asset Management Inc’s $7bn bid for AST.