Tuesday 03rd August 2021: After ed-tech, guns trained on Chinese gaming stocks

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.50%, Shanghai Composite down 0.47%, Hang Seng down 0.16%, ASX down 0.23%
  • Commodities : Gold at $1813.95 (-0.45%), Silver at $25.43 (-0.56%), Brent Oil at $73.31 (+0.58%), WTI Oil at $71.70 (+0.62%)
  • Rates : US 10-year yield at 1.190, UK 10-year yield at 0.534, Germany 10-year yield at -0.472

News & Data:

  • (EUR) Spanish Unemployment Change -197.8K vs -115.5K expected
  • (AUD) Cash Rate 0.10% vs 0.10% expected
  • (USD) ISM Manufacturing PMI 59.5 vs 60.8 expected
  • (EUR) German Final Manufacturing PMI 65.9 vs 65.6 expected

Markets Update:

Asian stocks turned in a mixed performance on Tuesday amid lingering concerns over the spread of the Delta virus variant and China’s regulatory crackdown over technology companies in dramatic ways. South Korea is struggling to contain a fourth Covid-19 wave, with new cases staying in the 1,200s for the second day in a row. In China, the spread of the Delta variant from the mainland’s coast to inland cities prompted authorities to implement strict measures.

Australian markets ended lower as the Reserve Bank stuck with its plan to taper its bond-buying program despite Sydney’s prolonged lockdown. Japanese shares fell after Prime Minister Yoshihide Suga flagged growing COVID-19 infections among Japanese in their 20s and 30s. Hong Kong-listed shares of firms in the Chinese online gaming market plummeted after the activity was described as a type of “opium” by Chinese state media.

Oil weakened late on Tuesday after initially gaining in the Asian time zone following a 3.3% to 3.6% decline in the United States on Monday. Analysts said the fall was the result of investors questioning whether the Delta variant would hurt global economic growth. The benchmark 10-year Treasury yield was down 5.5 basis points at 1.1839% in afternoon trading, extending a pattern of declines playing out since the spring.

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