Global Markets Update
- U.S. equity markets closed higher on Friday, with the Dow Jones up +1.4%, S&P 500 up +1.1% and NASDAQ gaining +0.8%, after Merck & Co said its Covid-19 antiviral pill reduced the risk of hospitalization or death by 50% in an interim analysis of a late-stage trial, and data revealed U.S. manufacturing expanded in September at the fastest pace in four months, bolstered by robust demand for factory goods and burgeoning inventory.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.264% and the 10-Yr yield at 1.462%.
- European markets. European equity markets closed lower on Friday, with the Stoxx Europe 600 down -0.4%, after data revealed inflation in the euro area surged to a 13-year high in September with CPI up +3.4% yoy (CPI excluding food and energy climbed to 1.9%, highest since 2008), meanwhile, a gauge measuring business activity in manufacturing fell in the month by the biggest margin since April 2020. The U.K. FTSE 100 declined -0.8% and German DAX closed -0.7% lower.
- Asian markets. Asian equity markets closed lower on Friday, with the KOSPI down -1.6%, as sentiment was dented by concerns over inflation and the impact of China’s power crisis on global supply chains. Nikkei 225 declined -2.3%, after data revealed Japan’s factory production and retail sales dropped in August with declines in auto output pushing overall factory production down -3.2% MoM while receipts at retailers sliding -4.1% MoM, as the damage from global supply chain disruptions widened and the country’s worst wave of the virus kept shoppers home. The Hang Seng and Shanghai Composite were closed for a holiday. According to the BOJ’s quarterly Tankan survey, confidence among Japan’s large manufacturers unexpectedly improved for a fifth straight quarter in 3Q21, suggesting a potentially faster recovery under the nation’s new prime minister.
- WTI oil is trading at US$75.88 a barrel. Iron ore price is at US$116.81 per ton. Spot gold is trading at US$1,758 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -2.00% lower on Friday.
- Virgin Money UK Plc (VUK) declined -7.4%, after unveiling plans to increase investment in technology, anticipating restructuring costs for the year to be around GBP145m, up from the previously planned GBP100m.
- Today’s trading. In Australia, inflation data is to be published.