Global Markets Update
- U.S. equity markets closed higher overnight, with both the Dow Jones and NASDAQ up +0.1% and S&P 500 gaining +0.2%. Orders placed with U.S. factories for business equipment unexpectedly stalled in July after four straight gains, with bookings for durable goods decreasing -0.1% MoM, reflecting a pullback in orders for commercial aircraft (the value of core capital goods orders, which exclude aircraft and military hardware and is seen as a barometer of business equipment investment, was little changed after an upwardly revised +1% increase a month earlier), marking a pause in a months-long buildup in capital investment.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.239% and the 10-Yr yield at 1.342%.
- European markets. European equity markets closed mixed overnight, with the Stoxx Europe 600 flat and the U.K. FTSE 100 up +0.3%. German DAX declined -0.3%, after a key measure of German business confidence slipped more than estimates in August, as businesses grew increasingly concerned that global supply issues and rising cases will put a dampener on economic recovery.
- Asian markets. Asian equity markets closed mixed overnight, with the Hang Seng down -0.1%, as sentiment remained weak after SEC Chair Gary Gensler’s warning “the clock is ticking” on Chinese firms to allow inspections of their financial audits or risk being delisted. The Shanghai Composite was up +0.7%, after PBOC pumped in 50bn yuan of liquidity into the financial system via seven-day reverse repurchase agreements. Nikkei 225 closed flat, after Japanese Prime Minister Yoshihide Suga expanded a state of emergency to eight more areas to cover almost 80% of the population as a delta-variant fueled surge sent Covid-19 cases to record. KOSPI closed +0.3% higher.
- WTI oil is trading at US$68.28 a barrel. Iron ore price is at US$145.92 per ton. Spot gold is trading at US$1,791 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.38% higher yesterday.
- WiseTech Global Ltd (WTC) surged +28.5%, after FY22 Ebitda forecast of A$260-285m came in above consensus estimate of A$239.1m and the Company declared FY21 final dividend of 3.85cps, up +141% y/y.
- Today’s trading. The U.S., jobless claims data is to be published.