In US economic data, durable goods orders rose by 0.7% in May (survey: +0.1%). Pending home sales rose by 0.7% in May (survey: -3.7%). The Dallas Federal Reserve manufacturing index fell from -7.3 to -17.7 in June (survey: +1).
European sharemarkets posted gains on Monday. Mining stocks led gains, up 1.8% after China eased Covid restrictions. Reuters reported “Shanghai’s top party boss declared victory over COVID-19 after the city reported zero new local cases for the first time in two months.” Industrials rose 1.2% and healthcare rose 0.6% The panEuropean STOXX 600 index rose by 0.5%. The German Dax index rose by 0.5% and the UK FTSE index rose by 0.7%. In London trade, shares of Rio Tinto rose by 1.4% and BHP gained 3.3%.
US sharemarkets eased on Monday. While energy rose 2.8% in response to higher oil prices, technology stocks gave back some of Friday’s gains. Communication services fell by 1.1%. Shares in cryptocurrency exchange Coinbase Global fell 10.8% on a broker downgrade. The Dow Jones index fell by 62 points or 0.2%. The S&P 500 index lost 0.3% and the Nasdaq index fell by 83 points or 0.7%.
US treasuries fell on Monday (yields higher). Economic data was stronger than expected and oil prices continued to lift. Traders also noted a poor response to auctions of two-year and five-year notes.
The auction of $46 billion in two-year notes sold at a high-yield of 3.084%, while the $47 billion in five-year notes sold at a high-yield of 3.271%. US 10-year yields rose by 8 points to near 3.20% and US 2- year yields rose by 7 points to near 3.13%.
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Major currencies were mixed against the US dollar in European and US trade. The Euro rose from lows near US$1.0550 to highs near US$1.0615 and was near US$1.0580 at the US close. The Aussie dollar rose from lows near US69.10 cents to highs near US69.50 cents and was near US69.20 cents at the US close. And the Japanese yen eased from 134.70 yen per US dollar to JPY135.50 and was near JPY135.47 at the US close.
Global oil prices rose by near 1.8% on Monday. Investors awaited news from the Group of Seven nations for any moves against Russian oil and gas exports. In addition Libya warned it may have to stop production in the next 72 hours due to unrest. Ecuador also may have to halt oil production in the next 48 hours. OPEC+ oil nations meet on Thursday to discuss production quotas. The Brent crude price rose by US$1.97 or 1.7% to US$115.09 a barrel. And the US Nymex crude price lifted by US$1.95 or 1.8% to US$109.57 a barrel.
Base metal prices rose by as much as 9.4% on Monday with tin up the most. But zinc was the exception, down 2.9%.
The gold futures price fell by US$5.50 or 0.3% to US$1,824.80 an ounce. Spot gold was trading near US$1,823 an ounce at the US close. The iron ore futures price rose by US$1.15 or 0.9% to US$129.68 a tonne.
Published by CommSec