Daily Update 8 September, 2021

Global Markets Update                                                       

  • U.S. equity markets were closed mostly lower overnight, with the Dow Jones down -0.8%, S&P 500 down -0.3% and NASDAQ closing +0.1% higher, amid worries that the economic recovery is faltering.
  • Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.218% and the 10-Yr yield at 1.370%.
  • European markets. European equity markets closed lower overnight, with both the Stoxx Europe 600 and U.K. FTSE 100 down -0.5%. German DAX declined -0.6%, after data revealed investor confidence in the German economy declined for a fourth month in September after global supply disruptions worsened and infection rates surged. The euro-area economy expanded faster than previously reported in 2Q21 with GDP increasing +2.2% qoq, more than the +2% qoq initially reported, bolstered by a surge in consumer spending with household consumption up +3.7% qoq, government outlays and investment.
  • Asian markets. Asian equity markets closed mostly higher overnight, with the Shanghai Composite up +1.5%, after data revealed China’s export growth unexpectedly surged in August with exports rising +25.6% yoy in dollar terms to a record $294.3bn as suppliers likely boosted orders ahead of the year-end shopping season, and imports grew +33.1% yoy to $236bn, also the highest level ever, leaving a trade surplus of $58.3bn for the month. The Hang Seng was up +0.7%, KOSPI down -0.5% and Nikkei 225 gained +0.9%.
  • WTI oil is trading at US$68.38 a barrel. Iron ore price is at US$144.59 per ton. Spot gold is trading at US$1,794 per oz.

ASX Market Update

  • ASX performance. The ASX 200 closed +0.02% higher yesterday, with gains in Energy (+0.78%) mostly offset by declines in Metals & Mining (-0.81%) stocks. The RBA maintained its key interest rate at 0.1% and pushed ahead with a cautious winding back of its bond-buying program, announcing to purchase government securities at a pace of A$4bn a week, down from A$5bn previously, until at least mid-February. 
  • Fortescue Metals Group Ltd (FMG) declined -3.1%, amid falling iron ore prices.
  • Today’s trading. In Japan, GDP data is to be published. In the U.S., MBA mortgage applications data is anticipated.