Global Markets Update
- U.S. equity markets closed higher overnight, with the Dow Jones up +0.2%, the S&P 500 up +0.5% and NASDAQ closing +0.8% higher, after Federal Reserve Chair Jerome Powell reiterated his views that inflation pressures will be transitory even after a notable increase in recent months, noting that a 5% inflation environment wouldn’t be acceptable, and urged patience at evaluating data on prices. Sales of previously owned U.S. homes fell for a fourth straight month in May, declining -0.9% MoM, as higher home prices and lean inventories weighed on home buying.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.228% and the 10-Yr yield at 1.462%.
- European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 up +0.3%, after data revealed consumer confidence in the euro area improved to well above its pre-pandemic levels in June, rising to -3.3 from -5.1 in prior month, as coronavirus infection rates fell and restrictions began to be lifted across the bloc. The U.K. FTSE 100 was up +0.4% and German DAX gained +0.2%.
- Asian markets. Asian equity markets closed mostly higher overnight, with the Shanghai Composite up +0.8%, as Banking stocks gained after Beijing’s reform measures with China allowing banks to set ceilings on deposit rates by adding basis points to the benchmark rate, a shift from the previous practice of multiplying the benchmark rate, helping ease pressure on banks’ funding costs. The Hang Seng was down -0.6%, as cryptocurrency-related stocks plunged after PBOC asked local lenders and Alipay not to get involved in providing services for virtual currency trading. KOSPI was up +0.7% and Nikkei 225 gained +3.1%.
- WTI oil is trading at US$72.82 a barrel. Iron ore price is at US$215.79 per ton. Spot gold is trading at US$1,777 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +1.48% higher yesterday.
- IGO Ltd (IGO) was up +6.2%, after announcing key regulatory requirements for the internal restructure of the Australian arm of Tianqi Lithium Corporation to proceed have now been satisfied. Bank of Queensland Ltd (BOQ) gained +5.5%, as Australia’s Treasurer provided BOQ approval to hold a controlling stake of 100% in Members Equity Bank.
- Today’s trading. In the U.S., PMI data is to be published.