Global Markets Update
- U.S. equity markets closed higher overnight, with the Dow Jones up +0.4%, S&P 500 up +0.3% and NASDAQ closing +0.1% higher, after data revealed applications for U.S. state unemployment benefits fell to a fresh pandemic low in the week ended August 28 with initial jobless claims falling 14,000 to 340,000. The U.S. trade deficit narrowed in July from a record a month earlier with the gap in trade of goods and services shrinking -4.3% to $70.1bn with imports decreasing -0.2% to $282.9bn partly reflecting fewer imports of consumer goods tied in part to lingering supply problems and a shift in household spending toward services, and exports climbing +1.3% to $212.8bn, the highest since 2019.
- Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.208% and the 10-Yr yield lower at 1.287%.
- European markets. European equity markets closed higher overnight with the Stoxx Europe 600 up +0.3%, U.K. FTSE 100 up +0.2% and German DAX gaining +0.1%.
- Asian markets. Asian equity markets closed mostly higher overnight, with the Hang Seng up +0.2% and Shanghai Composite up +0.8%, after China ramped up financial support for small businesses with PBOC announcing to provide 300bn yuan of low-cost funding to banks so they can lend to small and medium-sized companies and pledged better use of local government bonds as the economy showed further signs of a slowdown because of tight property controls and fresh virus outbreaks. KOSPI declined -1.0%, after data revealed South Korea’s inflation ran faster than expected in August and held above the central bank’s target for a fifth month, with CPI increasing +2.6% yoy. Nikkei 225 closed +0.3% higher.
- WTI oil gained +1.6% and is trading at US$69.72 a barrel, with investors wagering that the market can absorb additional supply from OPEC+ as the U.S. Gulf grapples with Hurricane Ida’s impact. Iron ore price is at US$153.14 per ton. Spot gold is trading at US$1,810 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.55% lower yesterday, led by declines in Metals & Mining (-2.49%) stocks.
- United Malt Group Ltd (UMG) declined -6.1%, after forecasting FY21 underlying Ebitda of A$129-134m, below A$156.1m in pcp.
- Today’s trading. In the U.S., unemployment data is to be published.