European equities edged lower overnight while US markets were closed due to a public holiday.
United States
The US Markets were closed on Tuesday on account of the 4th of July Holiday. In economic data, the Canadian PMI (Purchasing Manager Index) fell slightly from 49 in May to 48.8 in June. Meanwhile investors in the US await the release of the latest FOMC policy minutes along with factory orders for the month of May later today, forecasted to rise from 0.4% in April to 0.8% in May. In focus this week, however, will be the non-farm payrolls report on Friday, providing investors with insight into the direction of the monetary policy.
Europe
In Europe, equities finished modestly lower with little economic data to guide investors, as well as US markets being closed. The Euro Stoxx 600 Index edged 0.07% higher while the DAX declined -0.26% along with the CAC -0.23% and FTSE100 -0.10%. Tonight will also be light in terms of economic data, with the final readings of June services PMI the only notable release.
*Note: These prices are based on futures and/or CFD pricing and may therefore differ slightly from spot pricing.
Australia
The ASX is set to edge lower this morning with ASX200 futures down -12 points or -0.17% to 7,233. The index rose 0.445% on Tuesday after the RBA left interest rates unchanged at 4.10%. The central bank noted the decision will allow the board time to assess the impact of previous hikes and how the economy develops, and that some further tightening may be required. Following the decision, the Australian dollar finished 0.28% higher at 0.6692 while the yield on the policy-sensitive 3-year bond was 3.9 basis points higher at 4.30%.
Property stocks rose following the decision, with the real estate sector 1% higher with LIC up 3.69%, along with CHC 2.49%, LLC 1.79% and SGP 1.49%. Energy was the best-performing sector, rising 1.16% following a gain in oil prices. Paladin jumped 4.73%, Whitehaven Coal 2.37%, Karoon Energy 2% and Woodside 1.36%. Materials were mixed with gains in gold miners offset by weakness among major miners. Silver Lake Resources was the best-performing stock, jumping 5.77%. Notable gains included West Africa Resources jumping 4% while Pilbara Minerals added 2.17%. Meanwhile, RIO declined -1.15% and BHP modestly lower by -0.13%.
Commodities
In commodities, the price of oil was boosted after Monday’s decision by Saudi Arabia to extend a unilateral 1m barrel per day production cut through to August. WTI and Brent Crude were up by 1.73% and 2.14% to $71 and $76.25 respectively. The price of precious metals rose slightly, spot gold gained 0.20% to $1,925, while spot silver edged up 0.21% to $22.96. In industrials metals, copper prices fell by -0.28% to $377 and SGX Iron ore rose 0.38% although has modestly reversed those gains this morning trading at US$108.60.
Economic Calendar
5th July 2023
Australian Judo Bank Services PMI (MoM Jun) 09:00
China Caixin Composite and Services PMI (MoM Jun) 11:45
Eurozone Services PMI (MoM Jun) 18:00
Eurozone PPI (MoM May) 19:00
This article was written by James Woods, Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
