Daily Update 26 July, 2021

Global Markets Update

  • U.S. equity markets closed higher on Friday, with the Dow Jones up +0.7% and both S&P 500 and NASDAQ closing +1.0% higher. A measure of activity at U.S. service providers settled back in July to a five-month low, with the IHS Markit flash index of purchasing managers in the service sector slipping to 59.8 from 64.6 a month earlier reflecting businesses’ persistent struggle to fill positions and stock shelves, however, the IHS Markit U.S. manufacturing purchasing managers’ index advanced to a fresh record of 63.1 from 62.1 a month earlier with the group’s price measures also climbing to the highest readings in data back to 2007, leading to the composite index, measuring output at both manufacturers and service providers, slipping to a four-month low.
  • Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.198% and the 10-Yr yield at 1.276%.
  • European markets. European equity markets closed higher on Friday, with the Stoxx Europe 600 up +1.1%, after data revealed Europe’s economic surge strengthened in July, boosted by the services sector, although businesses warned of threats to the outlook in the form of raw-material shortage, delivery delays and rising costs. The U.K. FTSE 100 closed +0.9% higher, led by gains in exporters after pound fell as data revealed
    Britain’s economy showed signs of slowing in July with an index based on a survey of purchasing managers falling unexpectedly to its lowest since March. German DAX gained +1.0%.
  • Asian markets. Asian equity markets closed mostly lower on Friday, with the Shanghai Composite down -0.7%, amid fears of increased regulation from Beijing with China banning school tutoring companies from making profits, raising capital or going public. The Hang Seng was down -1.4%, KOSPI up +0.1% and Nikkei 225 remained closed for a holiday. 
  • WTI oil is trading at US$72.07 a barrel. Iron ore price is at US$199.20 per ton. Spot gold is trading at US$1,802 per oz.

ASX Market Update

  • ASX performance. The ASX 200 closed +0.11% higher on Friday.
  • Silver Lake Resources Ltd (SLR) was down -8.5%, after forecasting gold sales volume for FY22 of 235,000-255,000 oz, ~9% below consensus estimates.
  • Today’s trading. In Japan, PMI data is to be published.