In US economic data, ISM manufacturing index fell from 53 to 52.8 in July (survey: 52). the S&P Global manufacturing purchasing managers index fell from 52.7 to 52.2 in July (survey: 52.3). Construction spending fell by 1.1% in June (survey: +0.2%).

European sharemarkets eased on Monday. The euro zone manufacturing purchasing managers index contracted in July, the first fall since June 2020. Energy stocks fell most, down 1.5%. But banks rose 0.9% after earnings of HSBC beat market expectations. Shares in HSBC rose 6.1%. And shares in Pearson rose 12.7% after the British education group reiterated its full-year profit outlook. The pan-European STOXX 600 index fell by 0.2%. The German Dax index eased by less than 0.1% and the UK FTSE index fell by 0.1%. In London trade, shares of Rio Tinto fell by 1.2% and BHP shares fell by 1.8%.

US sharemarkets fell on Monday. Economic data was generally softer. But shares in Boeing rose 6.1% after Reuters reported the US aviation regulator approved the planemaker’s inspection and modification plan to resume deliveries of 787 Dreamliners. The energy sector fell 2.2% in response to a lower oil price. Shares in Exxon Mobil fell by 2.5%. The Dow Jones index fell by 47 points or 0.1%. The S&P 500 index lost 0.3% and the Nasdaq index fell by 22 points or 0.2%.

US treasuries were mixed on Monday as investors digested global manufacturing data. US 10-year yields fell by around 5 points to near 2.59%. But US 2-year yields were steady near 2.89%.

Major currencies were firmer against the US dollar in European and US trade. The Euro rose from lows near US$1.0215 to near US$1.0275 and was near US$1.0260 at the US close. The Aussie dollar rose from lows near US69.85 cents to near US70.45 cents and was near US70.25 cents at the US close. And the Japanese yen lifted from near 132.63 yen per US dollar to JPY131.60 and was near the strongest levels at the US close.


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Global oil prices fell by around 4-5% on Monday in response to weak readings on manufacturing in Asia, Europe and the US. Investors also await the meeting of OPEC+ oil producers on Wednesday. The Brent crude price fell by US$3.94 or 3.8% to US$100.03 a barrel. And the US Nymex crude price fell by US$4.73 or 4.8% to US$93.89 a barrel.

Base metal prices eased on Monday by as much as 2.4% (aluminium). But lead rose by 1.0% and zinc rose by 0.8%.

The gold futures price rose by US$5.90 an ounce or 0.3% to US$1,787.70 an ounce. Spot gold was trading near US$1,771 an ounce at the US close. The iron ore futures fell by US62 cents or 0.1% to US$114.86 a tonne.

Ahead: In Australia, lending indicators and building approvals data are released with weekly consumer confidence. The Reserve Bank Board meets. In the US, the JOLTs job openings data is released.

Originally published by CommSec