Global Markets Update
- U.S. equity markets closed lower overnight, with both the Dow Jones down -0.2%, S&P 500 down -0.5% and NASDAQ closing -1.2% lower. U.S. consumer confidence improved for a sixth straight month in July to a fresh pandemic high as Americans grew more optimistic about current business and labor market conditions. The IMF raised global growth outlook for 2022 to +4.9%, up from +4.4%, and maintained its world output growth outlook at +6% in 2021 following last year’s -3.2% drop, however, reduced the forecast for emerging-market expansion to +6.3% compared with the +6.7% increase projected in April, and raised the estimate for advanced economies by 50bps to +5.6%, with the U.K. getting the biggest bump among major economies, with the IMF now forecasting a growth rate of +7% in 2021, all the U.S., the euro area, Latin America and the Middle East and Central Asia getting GDP upgrades.
- Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.204% and the 10-Yr yield lower at 1.234%.
- European markets. European equity markets closed lower overnight, with the Stoxx Europe 600 down -0.5%, German DAX down -0.6% and U.K. FTSE 100 closing -0.4% lower, as a widening regulatory tech crackdown in China and possibility of rising virus cases derailing the economic and profit recovery, weighed on sentiment.
- Asian markets. Asian equity markets closed mixed overnight, with the Hang Seng down -4.2%, following the news China’s top legislative body will discuss imposing new laws on Hong Kong and Macau next month, a move that could see Beijing assert more influence in the two former colonial cities. The Shanghai Composite was down -2.5%, as speculation swirled that U.S. funds are offloading China and Hong Kong assets, KOSPI was up +0.2% and Nikkei 225 closed +0.5% higher.
- WTI oil is trading at US$71.81 a barrel. Iron ore price is at US$196.13 per ton. Spot gold is trading at US$1,800 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.50% higher yesterday.
- OZ Minerals Ltd (OZL) was up +6.5%, after maintaining its FY21 copper output forecast of 120,000-145,000 tons and upgrading gold production forecast to 205,000-228,000 oz from 190,000-215,000 oz.
- Today’s trading. In Australia, CPI data is to be published.