Daily Update – 25 October 2021

Global Markets Update

  • U.S. equity markets closed mostly lower on Friday, with the S&P 500 down -0.1%, Dow Jones up +0.2% and NASDAQ declining -0.8%, after Fed Chair Jerome Powell signaled some concern about inflation, noting global supply-chain constraints and shortages that have led to elevated inflation are likely to last longer than previously expected, likely well into next year.
  • Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.457% and the 10-Yr yield lower at 1.641%.
  • European markets. European equity markets closed higher on Friday, with both the Stoxx Europe 600 and German DAX up +0.5%. The U.K. FTSE 100 declined from intraday highs to close +0.2% higher, after data revealed U.K. consumer confidence fell in October to the lowest level since the country was stuck in lockdown as a powerful combination of surging inflation, food and fuel shortages and climbing Covid-19 cases left people increasingly worried about their future. Euro-area businesses reported a sharp slowdown in activity in October with private-sector activity slowing to the weakest since April caused by an aggravating global supply squeeze that also continued to produce record inflation as firms passed input cost increases on to customers, with selling prices accelerating at the fastest pace in almost two decades.
  • Asian markets. Asian equity markets closed mixed on Friday, with the Hang Seng up +0.4%, as sentiment towards property stocks improved after Beijing called for support for first-home purchases, adding to recent official rhetoric on property market stability and China Evergrande Group pulled back from the brink of default by paying a bond coupon before weekend’s deadline. The Shanghai Composite was down -0.3%, KOSPI flat and Nikkei 225 gained +0.3%. 
  • WTI oil is trading at US$84.16 a barrel. Iron ore price is at US$116.60 per ton. Spot gold is trading at US$1,794 per oz.

ASX Market Update

  • ASX performance. The ASX 200 closed flat on Friday.
  • Lynas Rare Earths Ltd (LYC) declined -8.1%, after reporting a 16% qoq drop in oxide production in 1Q22 on pandemic-related difficulties at its processing operation in Malaysia.
  • Wesfarmers Ltd (WES) gained +3.2%, after noting improved sales growth in some of its retail businesses
  • Today’s trading. No major data is to be published.