Morning Recap Monday 13 September 2021
Global Markets Update
- U.S. equity markets closed lower on Friday to notch their biggest weekly decline since mid-June, with the Dow Jones down -0.8%, with Apple Inc being the biggest decliner after a court ordered the Company to make a change to the way it generates money from its App Store, allowing app developers steer consumers to outside payment methods. The S&P 500 was down -0.8% and NASDAQ declined -0.9%. Prices paid to U.S. producers increased in August by more than forecast with PPI for final demand increasing +0.7% MoM (+8.3% yoy), a fresh series high and core PPI advancing +0.6% MoM (+6.7% yoy), as persistent supply chain disruptions squeeze production costs higher.
- Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 0.213% and the 10-Yr yield at 1.341%.
- European markets. European equity markets closed mostly lower on Friday, amid rising geopolitical tensions following the news the Biden administration is weighing a new investigation into Chinese subsidies and their damage to the U.S. economy as a way to pressure Beijing on trade and looking at enforcement options along with a path forward for roughly $300 billion in tariffs imposed on Chinese imports. The Stoxx Europe 600 was down -0.3%, German DAX down -0.1% and U.K. FTSE 100 closed +0.1% higher.
- Asian markets. Asian equity markets closed higher on Friday, with the Hang Seng up +1.9%, as tech stocks rebounded after a newspaper report clarified that Beijing was slowing down instead of halting new game approvals. The Shanghai Composite gained +0.3% and Nikkei 225 gained +1.2% and KOSPI closed +0.4% higher. China’s credit growth rebounded in August with aggregate financing increasing +169% MoM to 2.96 trillion yuan, after PBOC vowed to stabilize money supply and provide targeted support to a slowing economy.
- WTI oil is trading at US$69.72 a barrel. Iron ore price is at US$136.66 per ton. Spot gold is trading at US$1,788 per oz.