Morning Recap Tuesday 8 June 2021

Global Markets Update                                                                                                   

  • U.S. equity markets closed mostly lower overnight, as investors weighed the potential impact of a minimum corporate tax of 15% proposed by G7 nations, that could enable foreign governments to impose levies on big American companies. The S&P 500 was down -0.1%, Dow Jones down -0.4% and NASDAQ closed +0.5% higher. Demand for Federal Reserve’s overnight repo, a key facility used to help control short-term rates and in which counterparties like money-market funds can place cash with the central bank, surged to the highest on record, with forty-six participants parking a total of $486.1bn.
  • Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.153% and the 10-Yr yield at 1.565%.
  • European markets. European equity markets closed mostly higher overnight, however, worries over inflation with U.S. Treasury Secretary Janet Yellen commenting that higher interest rates would be a “plus” for the U.S., kept gains muted. The Stoxx Europe 600 was up +0.2%, German DAX down -0.1% and U.K. FTSE 100 gained +0.1%.
  • Asian markets. Asian equity markets closed mostly higher overnight, with the Shanghai Composite up +0.2%, Hang Seng down -0.5%, KOSPI up +0.3% and Nikkei 225 closing +0.4% higher. China’s exports continued to surge in May, growing +28% yoy in dollar terms, and imports soared +51.1% yoy, the fastest pace since March 2010, boosted by rising commodity prices, leaving a trade surplus of $45.5bn for the month.
  • WTI oil is trading at US$69.23 a barrel. Iron ore price is at US$205.18 per ton. Spot gold is trading at US$1,900 per oz.

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