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Monday Morning Report

Global Markets Update 

  • US markets. US markets finished higher on Friday’s close, as investors overlooked the played out risk of a government shutdown in the US. The S&P 500 and Dow Jones both rose, gaining +0.4% and +0.2% respectively. The USD resumed declines amongst prolonged debt ceiling talks and the US government shutdown continued for a second day.
  • Long-dated US treasury yields rose, with the 2-Yr yield at 2.06%, and the 10-Yr yield continuing to rise +1.28bps to 2.66%.
  • European markets. European markets rose as investors awaited corporate earnings announcements to be released in the coming week. The Stoxx 600 (+0.5%), the DAX (+1.2%) and the FTSE 100 (+0.4%) all experienced gains, with personal and household goods firms leading rises, up +1.6%.
  • Asian markets. Asian stocks rose for the sixth week in a row, in accordance with optimism over global growth prospects. The Hang Seng (+0.4%), Shanghai Composite (+0.4%), Nikkei (+0.2%) and Kospi (+0.2%) all experienced gains, led by the strong performance of industrial and technology stocks.
  • The WTI oil price fell -0.9%, trading at US$63.37/bbl. Iron ore prices remained flat, trading at US$73.02 per tonne. Spot gold prices rose +0.4% to US$1,332 per ounce.

ASX Market Update 

  • ASX performance. On Friday’s close, the ASX200 retreated from the week’s earlier gains, falling -0.1% to 6,005.81. Losses across Telcos (-1.2%), Energy (-0.7%) and Metals & Mining (-0.6%) dragged on the index, overpowering gains in Consumer Staples (+0.9%).
  • A2 Milk Co Ltd (A2M) experienced another day of gains (+5.2%), after the Company announced expansion into the North East region of the US earlier last week. Lithium stocks Orocobre Ltd (ORE), Galaxy Resources Ltd (GXY) and Mineral Resources Ltd (MIN) continued their fall, down -9.3%, -7.4% and -6.6% respectively as forecasts for lithium prices continued to fall. Spark Infrastructure Group (SKI) fell -3.3%, its biggest drop in two months.

Today’s trading. In Australia and the US, no significant data release is expected

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