Global Markets Update
- U.S. equity markets closed higher on Friday, with the Dow Jones up +0.6%, S&P 500 up +0.8% and NASDAQ gaining +1.2%, as dip buyers resurfaced and sentiment was boosted by the news the U.S. Food and Drug Administration is poised to fully approve Pfizer Inc’s coronavirus vaccine early next week.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.224% and the 10-Yr yield at 1.255%.
- European markets. European equity markets closed higher on Friday, with both the Stoxx Europe 600 and German DAX up +0.3% and U.K. FTSE 100 gaining +0.4%. Consumer prices in Germany rose +3.1% yoy in July, the highest level since December 1993, mainly due to rising gas, power and oil prices. U.K. retail sales fell unexpectedly at the sharpest pace since the economy was in lockdown in January, with the volume of goods sold in shops and online dropping -2.5% MoM in July after a +0.2% MoM gain in June, a signal that a sharp recovery may be losing momentum.
- Asian markets. Asian equity markets closed lower on Friday, with the Shanghai Composite down -1.1% and Hang Seng declining -1.8% to enter a technical bear market, as Chinese state media called for tougher oversight to protect consumers, hurting liquor makers, cosmetics firms and online pharmacies. KOSPI was down -1.2% and Nikkei 225 declined -1.0%. Japan’s inflation dropped for a 12th month in July, extending the longest losing streak in a decade, with CPI down -0.3% yoy (CPI excluding fresh food down -0.2% yoy) with the impact of declining mobile phone rates partially cushioned by rising energy and hotel prices.
- WTI oil is trading at US$62.14 a barrel. Iron ore price is at US$145.59 per ton. Spot gold is trading at US$1,781 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.05% lower on Friday.
- Cochlear Ltd (COH) declined -7.4%, after Company’s FY22 net income guidance of A$265-285m came in below consensus estimates. Inghams Group Ltd (ING) gained +4.6%, after reporting FY21 revenue of A$2.67bn, up +4.4% y/y and net income of A$83.3m, up +108% y/y, driven by volume and revenue growth, combined with continued operational efficiencies, net feed cost benefit and frozen poultry inventory reduction.
- Today’s trading. In Australia, PMI data is to be published.