Morning Recap Friday 10 September 2021

Global Markets Update                                                                                                   

  • U.S. equity markets closed lower overnight, with the Dow Jones down -0.4%, S&P 500 down -0.5% and NASDAQ closing -0.3% lower. Applications for U.S. state unemployment benefits fell to a pandemic-era low with initial jobless claims declining 35k to 310k in the week ended September 4.
  • Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.212% and the 10-Yr yield at 1.294%.
  • European markets. European equity markets closed mostly lower overnight, with the Stoxx Europe 600 down -0.1%, after ECB announced it will slow the pace of its pandemic bond-buying program in 4Q21, in a sign of confidence in the region’s economic recovery predicting the economy will return to pre-crisis levels by year-end, however, pledged to keep the 1.85 trillion-euro program running until March 2022 or later if needed. German DAX was up +0.1% and U.K. FTSE 100 declined -1.0%.
  • Asian markets. Asian equity markets closed mostly lower overnight, with the Hang Seng down -2.3%, led by declines in tech stocks as Chinese regulators took aim at gaming firms for focusing solely on profit with a report that China would halt approvals for new online games further weighing on sentiment. Shanghai Composite gained +0.5% and Nikkei 225 declined -0.6%. KOSPI closed -1.5% lower, amid concerns of regulatory crackdown spreading to South Korea with Financial Services Commission in Seoul saying it would sternly respond if fintech firms show no efforts to correct practices that could violate local rules. China’s factory-gate inflation accelerated to a 13-year high with PPI rising +9.5% yoy in August mainly driven by higher commodity prices, however, consumer inflation slowed, with CPI up +0.8% yoy, reflecting weak domestic demand.
  • WTI oil declined -2.0% and is trading at US$67.94 a barrel, after China released crude from its strategic reserves to ease a surge in energy costs. Iron ore price is at US$140.02 per ton. Spot gold is trading at US$1,795 per oz.

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