Global Markets Update
- U.S. equity markets closed higher on Friday, with the Dow Jones up +0.7%, NASDAQ up +1.2% and S&P 500 gaining +0.9%, as appetite for risk assets was boosted after the Federal Reserve Chair Jerome Powell reassured market participants that rate increases won’t be rushed, announcing the U.S. central bank could begin slowing down asset purchases this year as the U.S. economy recovers from the pandemic, but it won’t be in a hurry to raise interest rates. U.S. personal income growth accelerated in July, increasing +1.1% on the heels of an advance disbursement of the child tax credit and a pickup in compensation, however, personal spending growth moderated with purchases of goods and services rising +0.3% following a revised +1.1% increase in June, reflecting a slowdown in outlays for merchandise.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.215% and the 10-Yr yield at 1.307%.
- European markets. European equity markets closed higher on Friday, with both the Stoxx Europe 600 and German DAX up +0.4% and U.K. FTSE closing +0.3% higher.
- Asian markets. Asian equity markets closed mixed on Friday, with the Hang Seng flat, following a report that Beijing plans to ban companies with large amounts of sensitive consumer data from going public in the U.S. The Shanghai Composite was up +0.6%, after PBOC signaled targeted steps to cushion the economy, signaling it may reduce the reserve requirement ratio for banks to spur rural finance. KOSPI was up +0.2% and Nikkei 225 closed -0.4% lower.
- WTI oil is trading at US$68.74 a barrel. Iron ore price is at US$147.25 per ton. Spot gold is trading at US$1,818 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.04% lower on Friday. Australian household spending recorded its largest monthly decline this year in July, with retail sales dropping -2.7% MoM, as the delta variant of coronavirus spread along the nation’s east coast from its epicenter in Sydney, which now remains in its ninth week of lockdown.
- Clinuvel Pharmaceuticals Ltd (CUV) surged +18.0%, after reporting FY21 net income of A$24.7m, up +64% y/y.
- Today’s trading. In Japan, retail sales data is to be published.