Global Markets Update
- U.S. equity markets closed mixed overnight, with the Dow Jones down -0.4%, S&P 500 flat and NASDAQ closing +0.7% higher, after the Federal Reserve held interest rates near zero (0-0.25%) and Chairman Jerome Powell said that despite the economy’s progress, he was still “a ways away” from raising them.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.200% and the 10-Yr yield at 1.228%.
- European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 up +0.7%, as relaxation of U.K. travel restrictions lifted Travel & Leisure tocks. Both German DAX and U.K. FTSE 100 closed +0.3% higher. U.K. house prices fell unexpectedly in July with the average value of a home falling -0.5% to 244,229 pounds, the first decline in 4 months, signaling a loss of momentum in the property market after a tax break on purchases began to be phased out.
- Asian markets. Asian equity markets closed mixed overnight, with the Hang Seng up +1.5%, as the Tech stocks rebounded after Chinese state media sought to reassure investors saying stocks will stabilize and flagged policy support in 2H21 and as sentiment was boosted after China’s securities regulator held a conference with executives of major investment banks in an attempt to ease market fears. The Shanghai Composite was down -0.6%, KOSPI up +0.1% and Nikkei 225 closed -1.4% lower.
- WTI oil is trading at US$72.25 a barrel. Iron ore price is at US$196.13 per ton. Spot gold is trading at US$1,807 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.70% lower yesterday. Australia’s inflation surged in 2Q21, with CPI accelerating +3.8% yoy, the fastest pace since 2008, fueled by one-off factors like free childcare (core measure that strips out volatility climbed +1.6% yoy).
- Nickel Mines Ltd (NIC) slumped -11.1%, after reporting 2Q21 RKEF production of 10,143 tons, almost flat (up +0.7%) q/q. Spark Infrastructure Group (SKI) was up +5.4%, after the Company confirmed that it has received a further revised proposal from the Consortium for an all-cash consideration of A$2.95 per stapled security.
- Today’s trading. In the U.S., GDP, personal consumption, and jobless claims data is to be published.