Global Markets Update
- U.S. equity markets closed higher on Friday, after data revealed U.S. consumer sentiment continued to improve in late March to a one-year high. The S&P 500 was up +1.7% and Dow Jones closed +1.4% higher, led by gains in Financials stocks after the Federal Reserve freed banks from restrictions on dividends, and NASDAQ gained +1.2%. U.S. household spending declined in February (-1% MoM) and incomes fell -7.1% MoM.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.139% and the 10-Yr yield at 1.676%.
- European markets. European equity markets closed higher on Friday, with the Stoxx Europe 600 up +0.9% and UK FTSE 100 closing +1.0% higher. German DAX gained +0.9%, after data revealed German business confidence surged by more than expected in March.
- Asian markets. Asian equity markets closed higher on Friday, with the Shanghai Composite up +1.6%, after data revealed industrial profits in China climbed +179% in January and February from a year earlier amid a surge in exports. Both the Hang Seng and Nikkei 225 were up +1.6% and KOSPI gained +1.1%. PBOC estimates the maximum China’s economy can expand without fueling inflation is 5-5.7% in the next five years, representing an overall “medium to high” growth rate. China and Iran signed an overarching deal aimed at charting the course of their economic, political and trade relations over the next 25 years. A quarrel over allegations of human-rights abuses in China continued as Beijing announced retaliatory sanctions on individuals in the U.S. and Canada and the corporate fallout spread.
- WTI oil is trading at US$60.97 a barrel. Iron ore price is at US$155.09 per ton. Spot gold is trading at US$1,733 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.50% higher on Friday. Ties between Australia and China soured, after China announced imports of Australian wine products will incur anti-dumping levies of between 116.2% and 218.4% with effect from March 28.
- TPG Telecom Ltd (TPG) was down -6.7%, after David Teoh resigned as a Director and Chairman.
- Today’s trading. In the U.K., data on mortgage approvals is to be published.