Global Markets Update
- U.S. equity markets closed mostly higher on Friday, with the Dow Jones up +0.7%, as some of the biggest banks rose on speculation of a potential deluge of dividends and buybacks after the Fed’s stress tests. The S&P 500 was up +0.3% and NASDAQ declined -0.1%. U.S. consumer sentiment rose in June by less than forecast and longer-term inflation expectations moderated from a month earlier with consumers expecting inflation to rise +4.2% over the next year, the second-highest in a decade, and expect prices over the longer term to increase +2.8%, compared to +3% last month. U.S. personal spending stagnated in May, reflecting a decline in outlays for merchandise, as person income declined -2% MoM.
- Long-dated U.S. treasury yields were mixed, with the 2-Yr yield lower at 0.266% and the 10-Yr yield higher at 1.522%.
- European markets. European equity markets closed higher on Friday, with the Stoxx Europe 600 up +0.1%, after PMI data indicated that the euro area’s private-sector economy is growing at its fastest rate in 15 years, while average prices charged for goods and services in the region also advancing a pace. German DAX was up +0.1%, after data revealed
German business confidence climbed to the strongest in more than two years in June with a gauge of German business expectations for the next six months surging to the highest in more than a decade, and a measure of current conditions also improving. The U.K. FTSE 100 gained +0.4%.
- Asian markets. Asian equity markets closed higher on Friday, with the Shanghai Composite up +1.1%, after PBOC added another round of financing to the financial system, injecting 30bn yuan with reverse repo. The Hang Seng was up +1.4%, KOSPI up +0.5% and Nikkei 225 closed +0.7% higher. Tokyo consumer prices were flat yoy in June, halting a 10-month slide amid firmer global energy markets and despite business restrictions that remain in place to contain the coronavirus.
- WTI oil is trading at US$73.95 a barrel. Iron ore price is at US$209.97 per ton. Spot gold is trading at US$1,780 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.45% higher on Friday.
- Boral Ltd (BLD) gained +6.4%, after receiving an improved takeover bid from Seven Group.
- Today’s trading. In China, industrial profits data is to be published.