Global Markets Update
- U.S. equity markets closed higher overnight, with both the Dow Jones and S&P 500 up +0.8% and NASDAQ gaining +0.5%, as mostly positive earnings were able to offset fresh concerns about China’s technology clampdown and the delta virus variant.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.170% and the 10-Yr yield at 1.174%.
- European markets. European equity markets closed mostly higher overnight, with the Stoxx Europe 600 gaining +0.2%, led by gains in Energy stocks after BP Plc surged after increasing its dividend and announcing a buyback. German DAX was down -0.1% and U.K. FTSE 100 gained +0.3%.
- Asian markets. Asian equity markets closed mostly lower overnight, as sentiment was hurt following a statement by Infectious Diseases Society of America that the spread of the delta coronavirus variant has pushed the threshold for herd immunity to well over 80% and potentially approaching 90%. The Shanghai Composite was down -0.5% and Hang Seng declined -0.2%, with game stocks leading the declines after the Chinese state-owned media reported that the country should stay alert to the harm of online games and regulate the sector as soon as possible. KOSPI was up +0.4% and Nikkei 225 declined -0.5%.
- WTI oil declined -0.9% and is trading at US$70.61 a barrel, as the spread of the delta virus variant continued to pose a risk to demand, with China National Petroleum Corp estimating 5% of worldwide short-term oil demand remains potentially at risk. Iron ore price is at US$178.63 per ton. Spot gold is trading at US$1,811 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.23% lower yesterday. The RBA kept its key interest rate and three-year bond yield target unchanged at 0.10% and retreated it will maintain its flexible approach to the rate of bond purchases, continuing to buy A$5bn/week of bonds until early September, then tapering to A$4bn/week until at least mid-November.
- PointsBet Holdings Ltd (PBH) slumped -11.2%, after completing its institutional entitlement offer at 25% discount to last closing price.
- Today’s trading. In Australia, retail sales data is to be published. In the U.S., employment data is anticipated.