Shiller price index

CommSec Morning Report – The Bull

In US economic data, the Chicago Federal Reserve’s National Activity Index was flat at -0.19 in June (survey: -0.03). And the Dallas Federal Reserve Manufacturing Index fell from -17.7 to -22.6 in July (survey: -22).

European stock markets were mixed on Monday. The pan-European STOXX 600 index rose 0.1% with the banking sector up 1.7%. But the German Dax index fell 0.3%. Reuters reported that “Russia’s Gazprom has announced it is shutting down operation of another Siemens gas turbine on Nord Stream 1’s Portovaya compressor
station, taking into account the technical condition of the engine. Nord Stream 1 is the largest gas connection between Russia and Germany. But Britain’s FTSE index rose 0.4% on the back of rising mining and energy stocks. In London trading, shares of Rio Tinto rose 1.6% and shares of BHP rose 1.1%.

U.S. stock markets were mixed on Monday as investors awaited key earnings results and the Federal Reserve’s rate decision. Apple, Amazon, Alphabet, Microsoft and Meta Platforms are among the companies that announced their results this week. The Dow Jones index rose 91 points or 0.3%; the S&P 500 index rose 0.1%; and the Nasdaq index lost 51 points or 0.4%.

US Treasuries were lower on Monday (higher yields). The US Treasury sold US$45 billion of 2-year notes at a yield of 3.015% in “good” demand. The US Treasury will sell $46 billion in five-year notes on Tuesday and $38 billion in seven-year debt on Thursday. US 10-year yields rose about 3 points to nearly 2.81%. And US 2-year yields rose about 3 points to almost 3.02%.

Major currencies were mixed against the US dollar in European and US trading. The Euro moved from a low near US$1.0185 to a high near US$1.0250 and was around US$1.0220 at the close in the United States. The Australian dollar moved from a low of nearly 69 US cents to a high of nearly 69.60 US cents and was near a high at the US close. And the Japanese yen eased from around 136.25 yen per US dollar to around 136.78 JPY and was at 136.67 JPY at the US close.

Global oil prices rose nearly 2% on Monday on concerns about near-term global market supply from Russia and Libya. The price of Brent rose US$1.95 or 1.9% to US$105.15 per barrel. And the price of US Nymex crude rose US$2.00 or 2.1% to US$96.70 a barrel.

Base metal prices fell 2.9% on Monday, with aluminum falling the most. But copper and nickel both rose 0.4%.

The gold futures price fell US$8.30 per ounce or 0.5% to settle at US$1,719.10 per ounce. Spot gold was trading near US$1,718 an ounce at the close in the United States. The iron ore futures price rose 55 US cents or 0.5% to US$105.01 per tonne.

Coming soon: In Australia, data on consumer confidence and regional population are planned. In the U.S., weekly chain store sales data is released along with new home sales numbers, the Conference Board Consumer Confidence Index, and home prices from S&P/Case Shiller and the Federal Housing Finance Agency. There are also two regional surveys of the Federal Reserve Banks of Richmond and Dallas

Originally posted by CommSec