Major European indices close higher. German DAX closes at a new record high.

France’s CAC continues to move toward its all-time high price from 2000

The major European indices are closing higher. The German Dax closed at a new all-time high. The France’s CAC also closed at a 2021 new high and works closer to its 2000 all time high.

The provisional closes are showing:
  • German DAX, +0.3%
  • France’s CAC, +0.5%
  • UK’s FTSE 100, +0.8%
  • Spain’s Ibex, +0.9%
  • Italy’s FTSE MIB, +1.0%
In other markets as European traders look to exit:
  • Spot gold is trading up $20.20 or 1.17% at $1749.29.
  • Spot silver is up $0.16 or 0.69% $23.49
  • WTI crude oil futures are trading down $0.79 or -1.16% at $67.66
  • Bitcoin is trading up $1000 at $46,637
In the US stock market, the Dow and S&P traded to a new all-time highs and remain on track for a record close today. The NASDAQ index continues its slide as investors rotate out of the big cap tech into cyclicals.
  • Dow, up 164 points or 0.47% at 35429
  • S&P up 2.55 points or 0.06% at 4440
  • NASDAQ index down 68 points or -0.46% at 14719
In the forex, the NZD and the AUD are the strongest of the majors, while the USD and CAD are the weakest. The USD has corrected lower today after the recent run to the upside. Although CPI inflation came in more or less as expected, the market is hopeful that the peak is in place (time will tell). The fall in the dollar may also be attributed to a technical correction after some key targets were reached.

Dollar holds slightly firmer in European morning trade

USD/JPY inches up to five-week highs

The dollar sits in a good spot to start the day as it continues the more solid momentum from last week, with the US jobs report on Friday providing a springboard for the greenback to push higher against the rest of the major currencies bloc.

USD/JPY D1 11-08
In particular, the rise in 10-year Treasury yields above 1.30% (currently near 1.37%) is helping to bolster USD/JPY to fresh highs in five weeks at 110.75. The pair will be looking towards the 111.00 handle next after pushing past the 14 July high @ 110.70.
Elsewhere, EUR/USD continues to linger at the year’s lows, testing support @ 1.1704-11. GBP/USD is also down 0.2% to 1.3815 and heading for a fourth straight down day, while AUD/USD is down 0.3% to 0.7325 near its lowest levels in two weeks.

Chip shortage worsens – more than 20 week wait for deliveries

The ‘chip lead time’, which is the time from ordering a semiconductor to taking delivery, increased 8 days in July from June.

  • Now more than 20 weeks
The shortages are constraining production of autos, industrial equipment, IT devices, amongst others.
Data comes from Susquehanna Financial Group, reported here (link).
The shortages are not evenly spread across types of chips, some waits are longer than others. More at that link.
The 'chip lead time', which is the time from ordering a semiconductor to taking delivery, increased 8 days in July from June.

Singapore Q2 GDP -1.8% q/q and +14.7% y/y

ingapore Q2 GDP +14.7% y/y (Reuters poll +14.2%)

 -1.8% q/q at seasonally adjusted rate



  • The Ministry of Trade and Industry upgrades 2021 GDP growth forecast to 6.0% to 7.0% (previous forecast 4.0% to 6.0%)


MTI says performance of Singapore economy in H1 2021 was stronger than expected


  •  says barring major setback in global economy, Singapore economy expected to continue gradual recovery in H2
  • says easing curbs as vaccination ramps up to support recovery of consumer-facing sectors, alleviate labour shortages


2021 NODX forecast now +8% (from +7% previous forecast)

US debt ceiling – 46 Republican senators will not co-operate with Dems

DJ / WSJ with the report. Before you read, be aware the debt ceiling will be raised once this dance of farce is complete.

OK, here we go, via the Journal (may be gated) :
  • Most Republican senators have signed on to a pledge to force Democrats to raise the debt ceiling through procedures that don’t rely on GOP votes
  • Sen. Ron Johnson (R., Wis.) said in an interview that some 46 Republicans have signed on to a letter that he circulated during a rapid-fire series of votes on a budget resolution that kicks off Democrats’ efforts to pass a $3.5 trillion cornerstone of President Biden’s agenda.
Bipartisanship has its limits.

Bloomberg report on $600 million cryptocurrency theft – “biggest ever” DeFi looting

Bloomberg report on a hack of a protocol known as PolyNetwork that has resulted in the theft of circa US$600m in crypto


  • what is likely the biggest theft ever in the world of decentralized finance
  • PolyNetwork lets users swap tokens across multiple blockchains
  • Tens of thousands of people are affected by the hack


Link here for more info.

Leading crypto BTC doesn’t appear that fussed, its not far from recent highs:

hack of a protocol known as PolyNetwork crypto theft

Dow and S&P close at record highs

NASDAQ closes lower

The Dow and S&P both closed at record levels in trading today with the Dow industrial average leading the way with a 0.46% gain.  The S&P squeaked out a new high closing above the high close from August 6 at 4436.51. The close today came in at 4436.82. The NASDAQ index lagged today with a decline as traders are concerned about valuatiions given the prospects for higher rates earlier rather than later.
The final numbers are showing
  • Dow rose 162.82 points or 0.46% at 35264.68
  • S&P index rose 4.4 points or 0.10%  at 4436.74.
  • Nasdaq fell -72.95 points or -0.49% at 14788.08
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