Morning Recap Friday 4 June 2021
Global Markets Update
- U.S. equity markets closed lower overnight, with the S&P 500 down -0.4%, Dow Jones down -0.1% and NASDAQ closing -1.0% lower, on the back of mounting geopolitical tensions with Russia announcing it would eliminate the dollar from its National Wellbeing Fund to reduce exposure to U.S. assets, however, stocks pared back some losses after a report President Joe Biden may be open to a lower corporate tax rate than 28%. U.S. businesses in May added the most jobs in nearly a year, with the 978,000 increase in private payrolls being the largest since June 2020 and reflecting a large pickup in hiring in the leisure and hospitality industry. U.S. initial jobless claims decreased to a fresh pandemic low, declining by 20k to 385k in the week ended May 29.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.157% and the 10-Yr yield at 1.627%.
- European markets. European equity markets closed mostly lower overnight, with the Stoxx Europe 600 down -0.1%, German DAX up +0.2% and U.K. FTSE 100 declining -0.6%, as market participants weighed prospects of a stimulus reduction.
- Asian markets. Asian equity markets closed mixed overnight, with the Shanghai Composite down -0.4% and Hang Seng down -1.1%, following the news President Joe Biden will sign an order amending a ban on U.S. investment in Chinese companies begun under his predecessor, naming 59 companies with ties to China’s military or in the surveillance industry including Huawei Technologies Co and the country’s three biggest telecommunications companies. KOSPI was up +0.7% and Nikkei 225 gained +0.4%. Saudi Arabia increased oil prices for customers in Asia, with state energy firm Saudi Aramco hiking its key Arab Light grade for July shipments to Asia by 20 cents to $1.90 a barrel above a benchmark.
- WTI oil is trading at US$68.88 a barrel. Iron ore price is at US$203.38 per ton. Spot gold is trading at US$1,871 per oz.