Daily Update 6 September, 2021

Global Markets Update                                                       

  • U.S. equity markets closed mixed on Friday, with the Dow Jones down -0.2%, S&P 500 flat and NASDAQ closing +0.2% higher, after data revealed U.S. hiring downshifted abruptly in August with the smallest jobs gain in seven months with nonfarm payrolls increasing 235,000 after an upwardly revised 1.05 million gain in July, which saw the unemployment rate falling -20bps MoM to 5.2%. Investor sentiment remained weak following the news Democratic lawmakers are discussing a range of tax proposals targeting corporations and the wealthy, including levies on stock buybacks, carbon emissions and executive compensation, a wider set of measures than President Joe Biden had proposed to help fund a ramp-up in spending on social programs.
  • Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.206% and the 10-Yr yield at 1.322%.
  • European markets. European equity markets closed lower on Friday, with the Stoxx Europe 600 down -0.6%, after data revealed euro-area PMI slipped in August from July’s 15-year peak, as the coronavirus delta variant and manufacturing shortage dented the reopening boom. Both the U.K. FTSE 100 and German DAX declined -0.4%. 
  • Asian markets. Asian equity markets closed mixed on Friday, with the Hang Seng down -0.7%, amid concerns that the tech firms might be forced to make their own contributions following Alibaba’s $15.5bn pledge to Beijing’s “common prosperity” vision, that would hit profits in coming years. The Shanghai Composite declined -0.4%, after Beijing tightened the reins, suspending key approval route for offshore listings and Chinese officials pledged to tighten supervision in the financial services industry, suggesting a recent regulatory onslaught on the private sector that sent shockwaves globally is not over yet. Nikkei 225 gained +2.0%, amid news of Japanese Prime Minister Yoshihide Suga’s resignation. KOSPI closed +0.8% higher.
  • WTI oil is trading at US$69.29 a barrel. Iron ore price is at US$144.95 per ton. Spot gold is trading at US$1,828 per oz.

ASX Market Update

  • ASX performance. The ASX 200 closed +0.50% higher on Friday.
  • Mesoblast Ltd (MSB) is up +5.9%, following assurances from the CEO that the US FDA has not halted the development program of its key drug.
  • Today’s trading. In Australia, inflation data is to be published.