Global Markets Update
- U.S. equity markets closed higher overnight, with the Dow Jones up +1.0%, the S&P 500 up +0.6% and NASDAQ closing +0.7% higher, as President Joe Biden’s bipartisan $579bn infrastructure deal added to optimism the economic recovery will keep pushing ahead. Applications for U.S. state unemployment insurance fell slightly last week with initial claims decreasing by 7k to 411k in the week ended June 19 and continuing claims falling by 144k in the week ended June 12 to 3.4 million. Orders for U.S. durable goods rose in May at the fastest pace since January, increasing +2.3% MoM, bolstered by a sizable gain in orders for commercial planes.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.268% and the 10-Yr yield at 1.492%.
- European markets. European equity markets closed higher overnight, led by a broad rally in value and cyclical shares amid a revival of the reflation trade helped by the BOE’s dovish tone, with the bank pushing back against speculation that a surge in U.K. inflation means it’s preparing to boost interest rates, saying the economy still needs support to recover from the pandemic, with officials keeping the benchmark lending rate at 0.1% and vowing to maintain the pace of its bond purchases, targeting a cumulative 895bn pounds by the end of this year. Both the Stoxx Europe 600 and German DAX were up +0.9% and U.K. FTSE 100 closed +0.5% higher.
- Asian markets. Asian equity markets closed mixed overnight, with the Shanghai Composite flat, as positive sentiment from PBOC increasing its injection of short-term cash into the financial system for the first time since March amid rising demand for liquidity, was mostly offset by concerns over coronavirus with the delta coronavirus variant first identified in India raging across the world. The Hang Seng was up +0.2%, KOSPI up +0.3% and Nikkei 225 closed flat.
- WTI oil is trading at US$73.30 a barrel. Iron ore price is at US$206.19 per ton. Spot gold is trading at US$1,775 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed -0.32% lower yesterday.
- Afterpay Ltd (APT) was up +6.2%, after expanding reach into the U.S. with virtual cards.
- Today’s trading. In the U.S., personal income and spending data is to be published.