Global Markets Update
- U.S. equity markets closed mostly higher overnight, with both the Dow Jones and S&P 500 up +0.2% and NASDAQ closing flat. Sales of new U.S. homes dropped unexpectedly in June to the lowest since April 2020, with purchases of new single-family homes falling -6.6% to a 676,000 annualized pace, showing a further weakening in demand against a backdrop of elevated prices and tight supply.
- Long-dated U.S. treasury yields were mixed, with the 2-Yr yield lower at 0.194% and the 10-Yr yield higher at 1.291%.
- European markets. European equity markets closed mostly lower overnight, with the Stoxx Europe 600 down -0.1%, with declines in Healthcare partially offset by gains in Banks after ECB said it will let a cap on dividends and buybacks expire at the end of September. German DAX declined -0.3%, after data revealed German business confidence unexpectedly slipped in July with an index measuring expectations slipping to the lowest in three months, signaling concern that supply bottlenecks and resurgent infections could slow the recovery. The U.K. FTSE 100 was flat.
- Asian markets. Asian equity markets closed mostly lower overnight, with sentiment hurt by geopolitical tensions after China lashed out at U.S. policies in a tense start to high-level talks in Tianjin, declaring the relationship between the world’s two largest economies in a “stalemate.” The Shanghai Composite was down -2.3% and Hang Seng declined -4.1%, amid new efforts from Beijing to overhaul a range of industries with the government issuing new directives affecting online platforms behind food delivery services and online education technology companies. KOSPI was down -0.9% and Nikkei 225 closed +1.0% higher. Activity in Japan’s service shrank more sharply in July with service PMI declining 1.6 points to 46.4 as the nation prepared for a spectator-less Olympics amid an extended virus emergency in Tokyo, and manufacturing PMI declined 0.2 point to 52.2.
- WTI oil is trading at US$72.17 a barrel. Iron ore price is at US$196.13 per ton. Spot gold is trading at US$1,798 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed flat yesterday.
- Lynas Rare Earths Ltd (LYC) surged +10.6%, after reporting 4Q21 sales revenue of A$185.9m, up +69% q/q.
- Today’s trading. In China, industrial profits data is to be published.