Global Markets Update
- U.S. equity markets closed mostly lower overnight, with the Dow Jones down -0.2%, the S&P 500 down -0.1% and NASDAQ closing +0.1% higher.
A measure of U.S. manufacturing activity expanded in June at the fastest pace in records dating back to 2007 and service activity measure was at second highest on record, however, factories continued to struggle to keep pace with demand amid supplier delays, record growth in input costs and hiring difficulties, with a measure of manufacturers’ output prices rising to the highest in data back to 2007 and service providers also registering continued growth in costs and prices charged.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.262% and the 10-Yr yield at 1.484%.
- European markets. European equity markets closed lower overnight, with the Stoxx Europe 600 down -0.7%, as strong economic data which showed euro-area activity growing at the fastest pace in 15 years in June with average prices charged for goods and services in the euro area rising at by far the fastest pace since 2002, spurred concern about faster inflation in the region. The U.K. FTSE 100 was down -0.2% and German DAX closed -1.2% lower.
- Asian markets. Asian equity markets closed mostly higher overnight, with the Shanghai Composite up +0.2%, Hang Seng up +1.8%, KOSPI up +0.4% and Nikkei 225 closing flat. Japan’s manufacturing activity expanded for a fifth month in June while services continued to shrink amid measures to contain the coronavirus.
- WTI oil is trading at US$73.25 a barrel. Iron ore price is at US$206.19 per ton. Spot gold is trading at US$1,778 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.60% lower yesterday. Australia posted a record goods trade surplus of A$13.3bn in May, as iron ore, together with strong coal and meat exports, helped boost total exports to a new record of A$39.2bn, and imports increased +1%, driven by transport equipment, general industrial machinery, non-monetary gold, and electrical machinery, partially offset by declines in road vehicles and petroleum.
- Washington H Soul Pattinson & Co Ltd (SOL) was up +8.5%, after the Company agreed to buy Milton Corp in scrip deal.
- Today’s trading. In the U.S., GDP data is to be published.