Markets Overview

  • ASX SPI 200 futures up 0.4% to 7,531.00
  • Dow Average little changed at 35,499.85
  • Aussie down 0.5% to 0.7337 per US$
  • U.S. 10-year yield rose 2.8bps to 1.3590%
  • Australia 3-year bond yield fell 2bps to 0.30%
  • Australia 10-year bond yield fell 4bps to 1.19%
  • Gold spot little changed at $1,753.22
  • Brent futures down 0.4% to $71.18/bbl

Economic Events

  • 11am: (AU) Australia to Sell A$1.2 Billion 4.75% 2027 Bonds
  • 11:20am: (AU) RBA’s Jones, Kearns at Parliament Committee

U.S. stocks set another record high even as the S&P 500 Index settles into the narrowest trading range since before the Covid pandemic roiled global financial markets. The dollar strengthened and Treasury yields were mostly higher. “Equities become the proverbial term — there is no alternative — and that’s ultimately a money-flow story,” David Kostin, chief equity strategist at Goldman Sachs, said during a Bloomberg TV interview. “From a valuation perspective, equities are reasonably valued in the context of interest rates.” Treasuries were mostly lower. An earlier report showed applications for U.S. state unemployment benefits dropped for the third week in a row. Investors are continuing to evaluate the implications of a likely Federal Reserve tapering announcement in the months ahead, the spread of the delta virus variant and China’s clampdown. Global stocks are up about 90% since the pandemic nadir in March 2020, spurring questions about how much further they can climb.

Other News

An Olympic softball player’s gold medal that was bitten by the mayor of Nagoya, landing him in trouble when the central Japanese city received more than 7,000 complaints, will be exchanged for a new one, a source close to the matter said Thursday. Days after Nagoya Mayor Takashi Kawamura’s biting shenanigans went viral on social media, the 72-year-old told reporters he offered to pay to have the gold medal that belongs to softball pitcher Miu Goto replaced. Kawamura has now apologized for inappropriate language that drew accusations of sexual harassment. Last week, Kawamura came under fire for removing his mask and putting the medal between his teeth to pose for photos during an event celebrating the medal-winning athlete who hails from Nagoya, despite hygiene concerns during the coronavirus pandemic.