Global Markets Update
- U.S. equity markets closed mostly higher overnight, with the Dow Jones down -0.2%, NASDAQ up +0.9% and S&P 500 gaining +0.4%. U.S. consumer sentiment remained weak in late August with the University of Michigan’s final sentiment index falling to a near-decade low of 70.3 during the month from 81.2 in July, amid ongoing concerns over inflation and the coronavirus pandemic.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.201% and the 10-Yr yield at 1.280%.
- European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 up +0.1% and German DAX up +0.2%. The U.K. FTSE was closed for a holiday. German inflation jumped to its highest level since 2008 in August with CPI rising +3.9% yoy (CPI EU harmonized up +3.4% yoy), significantly faster than the +2% the ECB aims to achieve sustainably for the euro area, driven by energy and higher costs passed on by businesses.
- Asian markets. Asian equity markets closed higher overnight, with the Hang Seng up +0.5% and Shanghai Composite up +0.2%, however, sentiment remained weak amid concerns of further regulatory crackdown by China, after the National Press and Publication Administration announced new rules that limit video game playing by children to three hours a week, and China Securities Regulatory Commission vowed to crackdown on private equity funds. Nikkei 225 gained +0.5%, after data revealed Japan’s retail sales rose again in July, gaining +1.1% MoM with fuel sales rising and spending on general merchandise holding up. KOSPI closed +0.3% higher.
- WTI oil is trading at US$69.05 a barrel. Iron ore price is at US$150.21 per ton. Spot gold is trading at US$1,811 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.22% higher yesterday.
- Altium Ltd (ALU) slumped -14.2%, after forecasting FY22 revenue of $209-217m, that came in below consensus forecasts. Nuix Ltd (NXL) declined -10.8%, after reporting FY21 net loss of A$1.64m vs profit of A$23.6m y/y. InvoCare Ltd (IVC) was up +8.7%, after reporting 1H21 net income of A$43.9m vs loss of A$18.0m y/y.
Today’s trading. In Australia, building approvals data is to be published.