Modest gains and losses for most of the major indices
The European indices are closing the session with mixed results and modest changes for most of the major indices:
- German DAX, -0.1%
- France’s CAC, +0.7%
- UK’s FTSE 100, +0.35%
- Spain’s Ibex, +0.1%
- Italy’s FTSE MIB, unchanged
In other markets as London/European traders look to exit:
- Spot gold is down $-3.20 or -0.18% at $1809.70.
- Spot silver is up $0.15 or 0.56% $25.51
- WTI crude oil futures are off their lows but still down about $1.10 or -1.54% at $70.46. The low price reached $69.18.
- The price of bitcoin is trading just above the $38,000 level at $38,065
In the US stock market, the major indices are trading in the black with the NASDAQ lagging the Dow and S&P.
- Dow industrial average +200 points or 0.58% at 35,038.48
- S&P index up 20.03 points or 0.46% at 4407.19
- NASDAQ index up 9.6 points or 0.07% at 14690.73
In the US debt market, the benchmark 10 year yield is trading above and below unchanged on the day. It is currently up 0.2 basis point at 1.1740%.
The recent global dairy trade price auction results show a decline
The global dairy trade price index fell 1% in its auction today. The average sign price came in at $3784 per tonne. The decline is the eighth in a row.
China to target auto chip vendors next
Not much details being provided besides that they will punish vendors that “break the price rule”. I reckon they are a bit ticked off by the exorbitant surge in prices but then again with raw material shortages, there’s a valid reasoning for that.
In any case, when China does decide on something like this, more often than not there will be some form of follow-up action taken in due time.
China confronts its biggest spread of COVID-19 since January
The country reported 99 infections yesterday, before another seven cases were announced in Wuhan and one more in Beijing later in the day.
The latest spread is a bit concerning considering the supposedly extremely tight restrictions in place, especially in Wuhan.
The headline here is one that might border on being uncomfortable for risk assets as it could suggest that the risk of the delta variant spread is starting to have a broader impact across recovering economies all over the world.
Reports on New Zealand Prime Minister Jacinda Ardern says she has caught a cold.
But taking a coronavirus test. NZ’s Dept of Health urges anyone with symptoms to take a test.
Ardern’s duties will be carried out by deputy prime minister Grant Robertson.
Dow Jones, S&P give up gains and close in the red. NASDAQ closed mostly higher
The US stock market lost steam into the close with Dow industrial average and the S&P 500 closing in the red and giving up earlier gains. The NASDAQ index squeaked out a small gain on the day.
The final numbers are showing:
- Dow industrial average -97.11 points or -0.28% at 34838.36
- S&P index -8.11 points or -0.18% at 4387.15
- NASDAQ index rose 8.39 points or 0.06% at 14681.07
- Russell 2000 index fell -10.75 points or -0.48% at 2215.50
As the day went by, lower yields on the back of expectations of slower growth due to the Covid Delta variant, started to weigh on the major indices. The Dow industrial average was up as much as 256.64 points. The S&P index was up as much as 25.64 points and the NASDAQ index is up as much as 97.7 points before reversing back to the downside and closing near the lows for the day.