Morning Recap Thursday 3 June 2021

Global Markets Update                                                                                                   

  • U.S. equity markets closed higher overnight, with all the S&P 500, Dow Jones and NASDAQ closing +0.1% higher, as the tussle between economic optimism and inflation concern continued to play out, with Federal Reserve’s Beige book indicating, the pace of the U.S. recovery picked up in the past two months, with the economy expanding at a moderate pace from early April to late May, a somewhat faster rate than the prior reporting period, however, overall price pressures increased further, with selling prices increasing moderately, while input costs rising more briskly.
  • Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.145% and the 10-Yr yield at 1.589%.
  • European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 up +0.3% and German DAX closing +0.2% higher. The U.K. FTSE 100 gained +0.4%, as Britain recorded no new Covid-19 deaths yesterday for the first time since the pandemic began, bolstering demands for restrictions to be lifted next month. U.K. mortgage approvals rose unexpectedly for the first time in five months in April, increasing +4.2% month-on-month, after the Treasury extended a tax holiday on property purchases.
  • Asian markets. Asian equity markets closed mixed overnight, with the Shanghai Composite down -0.8%, Hang Seng down -0.6%, KOSPI up +0.1% and Nikkei 225 gaining +0.5%, as inflation concerns kept sentiment in check with South Korea announcing that inflation rose at its highest pace since 2012 in May as the economy’s rebound gathered momentum.
  • WTI oil is trading at US$68.77 a barrel. Iron ore price is at US$203.38 per ton. Spot gold is trading at US$1,908 per oz.


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