Daily Update 8 October, 2021

Global Markets Update                                                           

  • U.S. equity markets closed higher overnight, with both the Dow Jones and NASDAQ up +1.0% and S&P 500 gaining +0.8%, after Democrats signaled, they would take up Senate Republican leader Mitch McConnell’s offer to raise the U.S. debt ceiling into December, alleviating the immediate risk of a default. Applications for U.S. state unemployment benefits retreated in the week ended October 2 to the lowest in a month in a broad-based decline, with initial jobless claims down 38k to 326k.
  • Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.306% and the 10-Yr yield at 1.571%.
  • European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 up +1.6%, as investors were reassured with a report that the ECB is studying a new bond-buying program to prevent turbulence when emergency purchases get phased out next year. The U.K. FTSE 100 was up +1.2% and German DAX gained +1.9%.
  • Asian markets. Asian equity markets closed higher overnight, as sentiment toward risks assets was supported as a senior U.S. official said President Joe Biden plans to meet virtually with Chinese President Xi Jinping before the end of the year. The Hang Seng up +3.1%, however, sentiment towards tech stocks remained week following an announcement by a Chinese embassy that the nation is tightening oversight of tech companies to sustain growth and PBOC Governor Yi Gang’s announcement that China will continue taking steps to curb monopolistic behavior among internet platform companies. KOSPI was up +1.8% and Shanghai Composite remained closed for a holiday. Nikkei 225 gained +0.5%, after BOJ Governor Haruhiko Kuroda said the economy is picking up as a trend.
  • WTI oil is trading at US$78.85 a barrel. Iron ore price is at US$116.81 per ton. Spot gold is trading at US$1,756 per oz.

ASX Market Update

  • ASX performance. The ASX 200 closed +0.70% higher yesterday.
  • Collins Foods Ltd (CKF) was up +6.9%, after signing an agreement with KFC Europe, a unit of Yum! Brands, for the appointment of CKF as KFC’s corporate franchisee in the Netherlands under a corporate franchise agreement.
  • Today’s trading. In the U.S., unemployment data is to be published.