Markets Overview
- ASX SPI 200 futures little changed at 7,499.00
- Dow Average up 0.6% to 35,484.97
- Aussie up 0.3% to 0.7373 per US$
- U.S. 10-year yield fell 1.8bps to 1.3320%
- Australia 3-year bond yield rose 0.6bps to 0.32%
- Australia 10-year bond yield rose 2bps to 1.22%
- Gold spot up 1.3% to $1,752.14
- Brent futures up 1.3% to $71.58/bbl
Economic Events
- 10:30am: (AU) Australia to Sell A$1.5 Billion 105-Day Bills
- 10:30am: (AU) Australia to Sell A$500 Million 196-Day Bills
- 11am: (AU) Aug. Consumer Inflation Expectation, prior 3.7%
Asian stocks look set for modest gains early Thursday after U.S. shares and Treasuries rose on signs of moderating inflation that reduced concerns about an imminent paring back of Federal Reserve stimulus.
Futures edged up in Japan and Australia and were steady in Hong Kong. U.S. contracts fluctuated after the S&P 500 hit a record and the tech-heavy Nasdaq 100 fell amid a rotation to cyclical shares. Treasuries advanced following a strong auction of 10-year notes and a U.S. inflation report supporting the Fed’s assessment that reopening price pressures are transitory. The dollar slipped.
Prices paid by U.S. consumers climbed at a slower pace in July but remained elevated. The inflation trajectory has implications for the Fed’s likely timeline for tapering bond purchases and President Joe Biden’s push for unified Democrat support for another $3.5 trillion in social spending. Some lawmakers fear more outlays could push up the cost of living.
China’s crackdown on private enterprise is again in focus. Its banking and insurance watchdog is stepping up scrutiny of insurance technology platforms, widening a regulatory dragnet that has roiled global investors. The nation’s central bank is also facing mounting calls to cut interest rates as fresh coronavirus outbreaks threaten to hamper the economic recovery.
Other News
A woman from Omsk, Russia, is reportedly suing McDonald’s over an advert featuring cheeseburgers and chicken nuggets, which she said caused her to break her fast during Lent. Ksenia Ovchinnikova, an Orthodox Christian, said she was trying to stay away from meat and other animal products during the six-week period leading up to Easter in 2019, according to multiple reports. The case was first reported by Russian state media and picked up by western outlets including Fox News, which wrote that she abstained from eating meat for a month when the enticing McDonald’s advert made her give in, according to the lawsuit. Lent is a strict period in which many devout Christians are expected to sacrifice the eating of meat, poultry, eggs, and dairy for the entire season. “When I saw an advertising banner, I could not help myself. I visited McDonald’s and bought a cheeseburger,” she reportedly said in her statement. Fox News reported that Ovchinnikov accused the fast-food chain of breaking consumer protection law and insulting her religious feelings. She is suing McDonald’s for $14 (1,000 rubles) as compensation for sustained moral damage.
