Daily Update 7 September, 2021

Global Markets Update                                                   

  • U.S. equity markets were closed for a holiday in observance of the Labor Day. U.S. service providers expanded at a robust pace in August, though a step slower than the record rate seen a month earlier, suggesting that concerns about the highly contagious delta variant are cooling demand for some services like dining out, leisure and travel and service providers continue to face supply and labor constraints, however, the recent build-up in inflationary pressures moderated with the ISM’s prices paid index falling to the lowest since March after hitting an almost 16-year high in July.
  • Long-dated U.S. treasury yields were unchanged, with the 2-Yr yield at 0.206% and the 10-Yr yield at 1.322%.
  • European markets. European equity markets closed higher overnight, with both the Stoxx Europe 600 and U.K. FTSE 100 up +0.6%. German DAX gained +1.0%, after data revealed German manufacturing orders rose in July, reaching the highest level since the beginning of the series in 1991, with manufacturing orders increasing +3.4% MoM in July in adjusted terms, following a revised +4.6% MoM increase in June. 
  • Asian markets. Asian equity markets closed higher overnight, with the Hang Seng up +1.0% and Shanghai Composite closing +1.1% higher, led by gains in aluminium stocks after price of aluminum hit the highest in over a decade as political unrest in Guinea after a unit of the military seized power and suspended the constitution, fueled concerns over supply of the raw material needed to make the metal. KOSPI closed +0.1% higher. Nikkei 225 gained +1.8%, on prospects of better economic and pandemic policies for Japan under a new leader.
  • WTI oil declined -0.6% and is trading at US$68.89 a barrel, after Saudi Arabia slashed crude prices for Asian buyers. Iron ore price is at US$144.59 per ton. Spot gold is trading at US$1,823 per oz.

ASX Market Update

  • ASX performance. The ASX 200 closed +0.07% higher yesterday, with gains in Telcos (+1.16%) and Insurance (+0.98%) mostly offset by declines in Energy (-1.68%) stocks.
  • Fortescue Metals Group Ltd (FMG) declined -10.9, after trading ex-dividend.
  • Today’s trading. In Australia, RBA’s cash rate target is to be published. In China, trade balance data is anticipated.