Global Markets Update
- U.S. equity markets closed lower overnight, with the Dow Jones down -0.2%, S&P 500 down -0.1% and NASDAQ closing -0.6% lower, as investors reassessed valuations in light of global economic risks including the spread of the Covid-19 delta variant and reductions in central bank stimulus. According to Federal Reserve’s Beige Book, U.S. economic growth downshifted slightly to a moderate pace in early July through August, largely attributable to a pullback in dining out, travel, and tourism in most Districts due to the rise of the Delta variant.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.216% and the 10-Yr yield at 1.338%.
- European markets. European equity markets closed lower overnight, with the Stoxx Europe 600 down -1.1% and German DAX closing -1.5% lower, as growth concerns were compounded by speculation that the European Central Bank is getting ready to slow down emergency stimulus. The U.K. FTSE 100 declined -0.8%, after Bank of England Governor Andrew Bailey said in testimony to the Treasury Committee in Parliament that the pace of the U.K.’s economic recovery from the Covid-19 pandemic is plateauing.
- Asian markets. Asian equity markets closed mostly lower overnight, with the Shanghai Composite flat and Hang Seng down -0.1%, as sentiment took a hit after gaming companies including Tencent and NetEase were summoned by a pair of China’s government agencies. Nikkei 225 gained +0.9%, after data revealed Japan’s GDP expanded at an annualized pace of +1.9% qoq in 2Q21, faster than an earlier estimate of +1.3% qoq, buoyed by government spending, business investment and private consumption. KOSPI closed -0.8% lower.
- WTI oil is trading at US$69.37 a barrel. Iron ore price is at US$140.02 per ton. Spot gold is trading at US$1,790 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.24% lower yesterday.
- Macquarie Group Ltd (MQG) gained +4.7%, after issuing positive guidance for 1H22, announcing favourable market conditions are driving a stronger-than-expected 1H in commodities and global markets division, with the sale of the UK commercial and industrial smart meter portfolio also contributing to the result.
- Today’s trading. In the U.S., jobless claims data is to be published.