Global Markets Update
- U.S. equity markets closed mostly lower overnight, with the Dow Jones down -0.9%, S&P 500 down -0.5% and NASDAQ gaining +0.1%, after the vice-chair of the Federal Reserve suggested rates could rise by 2023, announcing the central bank was on track to begin interest rates hikes in 2023 with a possible taper announcement later this year. U.S. companies added far fewer jobs than expected in July with Businesses’ payrolls increasing by 330,000, the smallest gain since February, indicating persistent hiring obstacles despite broader improvement in the economy. U.S. service providers expanded in July at the fastest pace since 1997 as measures of business activity, new orders and employment all improved.
- Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.178% and the 10-Yr yield lower at 1.172%.
- European markets. European equity markets closed higher overnight, as sentiment was boosted after the EU expanded its portfolio of potential vaccines, signing an advance purchase agreement with Novavax Inc. The Stoxx Europe 600 was up +0.6%, German DAX up +0.9% and U.K. FTSE 100 gained +0.3%.
- Asian markets. Asian equity markets closed mostly higher overnight, with Shanghai Composite up +0.8%, led by gains in sports stocks after China announced plans to boost sports spending in the run-up to the 2022 Winter Olympics with the State Council reiterating a goal of boosting the sector to 5 trillion yuan by 2025, a +70% increase from 2019 levels. The Hang Seng was up +0.9%, KOSPI up +1.3% and Nikkei 225 declined -0.2%.
- WTI oil is trading at US$67.92 a barrel. Iron ore price is at US$179.25 per ton. Spot gold is trading at US$1,812 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.38% higher yesterday, after data revealed Australia’s retail sales volumes increased +0.8% qoq in 2Q21, as households increased their discretionary spending for much of the quarter, with cafes, restaurants and takeaway food services, other retailing and, clothing, footwear and personal accessory retailing all benefiting in volume terms.
- BWP Trust (BWP) declined -2.2%, after reporting FY21 distributable profit of A$117.5m, flat over pcp.
- Today’s trading. In Australia, trade balance data is to be published.