Global Markets Update
- U.S. equity markets closed mostly lower overnight, with the Dow Jones down -0.6%, as a plunge in Treasury yields to the lowest since February weighed on Banks. The S&P 500 was down -0.2% and NASDAQ gained +0.2%. U.S. service providers expanded in June by less than forecast as a measure of employment contracted, reflecting employers’ struggle to attract workers in industries like hotels and restaurants.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.218% and the 10-Yr yield at 1.350%.
- European markets. European equity markets closed lower overnight, with the Stoxx Europe 600 down -0.5%, amid concerns about an economic revival as the delta variant continues to boost case numbers worldwide. The U.K. FTSE 100 was down -0.9%, after the U.K. government warned that infection rates could rocket to 100,000 new cases per day, and German DAX closed -1.0% lower, after data revealed investor confidence in Germany’s economic recovery eased in July to lowest since January, as supply bottlenecks weigh on manufacturing and spreading coronavirus variants threaten the revival in services.
- Asian markets. Asian equity markets closed mixed overnight, with the Hang Seng down -0.3% and Shanghai Composite declining -0.1%, amid latest regulatory move by China, announcing it would tighten rules that let Chinese companies list overseas and revise its IPO approval process. KOSPI was up +0.4% and Nikkei 225 closed +0.2% higher.
- WTI oil is trading at US$73.72 a barrel. Iron ore price is at US$214.25 per ton. Spot gold is trading at US$1,797 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.73% lower yesterday. The RBA opted against extending its yield-target horizon beyond April 2024 and scaled back purchases of longer-dated bonds, keeping borrowing costs unchanged at 0.1% and announcing once the current A$5bn a week quantitative easing program ends in September, it would shift to A$4bn a week with a review in mid-November.
- Ramelius Resources Ltd (RMS) declined -5.4%, after reporting FY21 gold production of 272,109 oz, below management’s guidance of 275,000-280,000 oz.
- Today’s trading. In China, foreign reserves data is to be published.