Markets Overview

  • ASX SPI 200 futures up 1.1% to 7,262.00
  • Dow Average up 1.3% to 34,870.16
  • FTSE 100 up 1.3% to 7,121.88
  • Euro up 0.3% to $1.1876
  • Aussie up 0.7% to 0.7482 per US$
  • U.S. 10-year yield rose 6.7bps to 1.3595%
  • Australia 3-year bond yield fell 0.1bps to 0.35%
  • Australia 10-year bond yield rose 4bps to 1.36%
  • Gold spot up 0.3% to $1,808.32
  • Brent futures up 1.9% to $75.55/bbl

Economic Events

Futures pointed higher in Japan, Australia and Hong Kong. U.S. contracts were little changed. The S&P 500 finished last week at all-time highs as investors continued to bet that global growth remains on track despite new Covid-19 variants. China’s central bank cut the amount of cash most banks must hold in reserve, underpinning gains, and the government proposed new rules on companies listing overseas. Treasuries snapped an eight-session rally that saw 10-year yields tumble as low as 1.25% in a volatile week. They will remain in focus amid new supply coming to the market this week, as well as key U.S. inflation data and Federal Reserve Chair Jerome Powell’s semi-annual appearance before Congress.

Other News

Some fish got hooked – on meth. Scientific researchers got brown trout addicted to the drug in a test that had them swimming in a tank with meth-laced water for eight weeks, a study published Tuesday said. When they were later given an option of a clean stream or one with methamphetamine the trout preferred the tainted water – a sign they were experiencing withdrawal, the researchers said in The Journal of Experimental Biology. The study, which aimed to test the effects of drugs seeping into natural waterways, also found the trout moved around less after meth exposure than their drug-free counterparts. The study’s head researcher told CNN that as the drug seeps through the filtration process at water treatment plants, drug-addicted fish could seek out water change behavioural patterns and throw the ecosystem into disarray. Wastewater plants are not equipped to remove drugs such as meth that have seeped into the water supply. Addicted fish may gather around where the plants are discharging water, the researcher warned. Prescription drugs may also have a potential negative impact on fish and wildlife, said Pavel Horky of the Czech University of Life Sciences in Prague. “Current research from teams around the world undoubtedly shows their adverse impact on ecosystems, which in turn can influence humans,” he told CNN. But chemical biologist Randall Peterson with the University of Utah urged caution about the study in The Scientist magazine. He said he expected waterways to have less concentration of meth than what was used in the study – 1 microgram per litre.