Global Markets Update
- U.S. equity markets closed mostly higher overnight, with both the Dow Jones and S&P 500 up +0.3% and NASDAQ closing flat, after minutes from the Federal Reserve’s June meeting showed policy makers continued to see elevated uncertainty and debated the tapering of debt purchases, with various participants mentioning that they expect the conditions for beginning to reduce the pace of asset purchases to be met somewhat earlier than they had anticipated at previous meetings.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.216% and the 10-Yr yield at 1.316%.
- European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 up +0.8%, U.K. FTSE 100 up +0.7% and German DAX closing +1.2% higher. European Central Bank policy makers agreed to raise their inflation goal to 2% from the previous target of ‘below, but close to, 2% over the medium term’ and allow room to overshoot it when needed.
- Asian markets. Asian equity markets closed mostly lower overnight, with the Shanghai Composite up +0.7%, as inflation concerns eased after China pledged to release more base metals from its state reserves in its latest effort to rein in surging raw material costs. The Hang Seng was down -0.4% and KOSPI closed -0.6% lower. Nikkei 225 declined -1.0%, following the news Japan plans to declare a fresh state of emergency for Tokyo that would cover the entirety of the Olympics. China’s foreign-currency holdings slipped for the first time in three months in June to $3.214 trillion from $3.222 trillion in May, as a stronger dollar cut the value of assets in other currencies.
- WTI oil is trading at US$71.91 a barrel. Iron ore price is at US$217.24 per ton. Spot gold is trading at US$1,803 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.90% higher yesterday, led by gains in Consumer Staples (+1.86%) stocks.
- Challenger Ltd (CGF) gained +8.8%, following the news Athene along with Apollo Global Management has bought 15% interest in CGF from an existing holder.
- Today’s trading. In the U.S., jobless claims and consumer comfort data is to be published.