Global Markets Update
- U.S. equity markets closed mostly lower overnight, with the Dow Jones up +0.2%, S&P 500 down -0.3% and NASDAQ declining -0.5%, as markets digested the prospects of a more hawkish tilt from central banks.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.276% and the 10-Yr yield at 1.487%.
- European markets. European equity markets closed mostly higher overnight, with the Stoxx Europe 600 down -0.2% and U.K. FTSE 100 up +0.2%. German DAX gained +0.3%, as investors cheered Olaf Scholz of the center-left Social Democrats defeating Chancellor Angela Merkel’s conservatives in an extremely tight election, viewing prospect of a government led by the Social Democrats as supportive for equity markets due to an expected boost in public spending.
- Asian markets. Asian equity markets closed mixed overnight, with the Shanghai Composite down -0.8%, with electricity-intensive businesses tumbling after Beijing curbed power supplies in the country’s manufacturing hubs to cut emissions, and tech stocks declining after a senior Chinese cyberspace official said that authorities will take further steps to rein in internet companies, citing the shared economy, online health care and smart delivery as areas of concern. The Hang Seng gained +0.1%, after PBOC vowed to ensure “healthy” property market development and ensure legitimate rights of home buyers and pledged to push the real lending rates to fall further, in efforts to stabilize the economy, as the recovery is not solid and not balanced. KOSPI was up +0.3% and Nikkei 225 closed flat.
- WTI oil is trading at US$75.45 a barrel. Iron ore price is at US$105.77 per ton. Spot gold is trading at US$1,751 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.57% higher yesterday.
- Flight Centre Travel Group Ltd (FLT) gained +7.5%, after Australian Prime Minister Scott Morrison said state premiers must not keep borders closed once agreed Covid-19 vaccination targets are reached. Beach Energy Ltd (BPT) gained +4.2%, after signing 5-year deal with BP Singapore regarding the supply of BPT’s share of liquefied natural gas from Waitsia Gas Project Stage 2.
- Today’s trading. In Australia, retail sales data is to be published.