Morning Recap Wednesday 9 June 2021
- U.S. equity markets closed mixed overnight, with the S&P 500 flat, Dow Jones down -0.1% and NASDAQ closing +0.3% higher. An index of small-business sentiment eased 0.2 point from the prior month to 99.6 in May, and forward-looking components of the index retreated, with more U.S. small businesses than at any time since the 1980s saying they raised prices, stoking inflationary concerns as surging materials costs and rising wages drive up costs.
- Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.153% and the 10-Yr yield at 1.531%.
- European markets. European equity markets closed mostly higher overnight, with the Stoxx Europe 600 up +0.1%, after data revealed the euro-area recession was shallower than expected in 1Q21, with GDP shrinking -0.3% qoq (-1.3% yoy) vs prior estimate of -0.6% qoq (-1.8% yoy). German DAX was down -0.2% and U.K. FTSE 100 gained +0.3%.
- Asian markets. Asian equity markets closed mostly lower overnight, with the Shanghai Composite down -0.5%, led by declines in copper miners on reports that Peru’s presidential candidate Pedro Castillo, who has vowed to nationalize the nation’s mineral resources, is leading in vote tallies. The Hang Seng was flat, KOSPI down -0.1% and Nikkei 225 closed -0.2% lower. Japan’s economy contracted an annualized -3.9% qoq in 1Q21, less than initially reported, easing concern over the risk of a double-dip recession.
- WTI oil is trading at US$70.25 a barrel. Iron ore price is at US$205.18 per ton. Spot gold is trading at US$1,893 per oz.