Markets Overview
- ASX SPI 200 futures down 1.0% to 7,124.00
- Dow Average down 2.1% to 33,962.04
- Aussie down 0.8% to 0.7341 per US$
- U.S. 10-year yield fell 9.9bps to 1.1921%
- Australia 3-year bond yield fell 2bps to 0.28%
- Australia 10-year bond yield fell 4bps to 1.25%
- Gold spot little changed at $1,811.87
- Brent futures down 6.6% to $68.70/bbl
Economic Events
- 9:30am: (AU) July ANZ Roy Morgan Weekly Consumer, prior 110.0
- 11:30am: (AU) RBA Minutes of July Policy Meeting
A global stocks selloff is set to continue in Asia on Tuesday as the spread of the delta coronavirus variant stokes concerns about the resilience of the economic recovery and bolsters haven assets.
Futures fell about 1% in Japan, Australia and Hong Kong. Cyclical companies have suffered the brunt of the rout, reversing the reopening trade. Commodity, financial and industrial shares led losses in the S&P 500, which fell the most in two months. Volatility soared, sending the Cboe Volatlity Index, or VIX, higher. Escalating tensions between the U.S. and China added to the negative mood.
Long-term Treasury rates spiraled to their lowest since February, flattening the yield curve. Ten-year yields tumbled as much 12 basis points to as little as 1.17% Monday.
Other News
An unopened copy of Nintendo’s “Super Mario 64” sold at auction Sunday for a whopping $1.56 million, shattering the previous record amount paid for a single video game which was set just two days earlier. Dallas, TX-based Heritage Auctions noted that it’s the first time a single video game has ever sold for more than $1 million. Super Mario 64 was released in 1996 and quickly became a classic. It was the first video game to feature the world-famous Mario character in 3D, Heritage Auctions said in a statement, and it was the best-selling game on the Nintendo 64 console. The game received the highest possible A++ grade from video game grading company WataGames, Heritage Auctions said, meaning it was preserved in nearly impeccable condition.
