Global Markets Update
- U.S. equity markets closed mostly higher overnight, with the Dow Jones up +0.3%, S&P 500 up +0.2% and NASDAQ declining -0.2%, after Fed Chair Jerome Powell and his counterparts at the ECB, BOJ and BOE voiced cautious optimism that supply-chain disruptions lifting inflation rates around the world would ultimately prove temporary, however, investors remained alert to the potential for market disruption should politicians in Washington fail to raise the debt-ceiling in time to avoid a default on U.S. obligations with the Congressional Budget Office predicting the U.S. Treasury is likely to exhaust its ability to borrow as soon as late October. A gauge of U.S. pending home sales rebounded in August to a seven-month high as buyers welcomed more attractive pricing and additional inventory.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.293% and the 10-Yr yield at 1.525%.
- European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 up +0.6%, after data revealed confidence in the euro-area economy unexpectedly rose in September as consumers turned more optimistic about the outlook and construction companies saw employment prospects improve, however, trouble in services, retailing and industry continued to weigh on the sentiment gauge, with manufacturers lowering production expectations amid persistent supply bottlenecks. The U.K. FTSE 100 was up +1.1% and German DAX gained +0.8%.
- Asian markets. Asian equity markets closed mostly lower overnight, with the Shanghai Composite down -1.8%, following the news the Chinese government is considering raising power prices for industrial consumers to help ease a growing supply crunch. The Hang Seng gained +0.7%, KOSPI declined -1.2% and Nikkei 225 closed -2.1% lower. Fumio Kishida is set to become Japan’s prime minister, after the ex-foreign minister overcame popular reformer Taro Kono to win leadership of the country’s ruling party.
- WTI oil is trading at US$74.61 a barrel. Iron ore price is at US$116.81 per ton. Spot gold is trading at US$1,726 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -1.08% lower yesterday.
- Chalice Mining Ltd (CHN) declined -6.0%, as nickel fell amid concerns over lower stainless steel output given China’s electricity shortages.
- Today’s trading. In Australia, building approvals data is to be published.