Advanced Share Registry : Market News 24 June 2021

An undecided market thought it best to play it safe near the neutral line last night in the States as indices bobbed either side of neutral. A 2.5% bounce in the recently decimated Bitcoin price charged up A 5.3% rally in Tesla for the Nasdaq Composites sixteenth high for 2021, albeit by 0.1%. Bitcoin remains up by 240% for the year FYI.

Microsoft helped in with a new intraday high to crack the $2 trillion market capitalisation level that had only been occupied by Apple until then. Semi-conductor stocks chipped in, with Nvidia and Micron Technology up about 1% each. Ten-year U.S. Treasury notes yielded 1.486% from 1.471% on Tuesday. Inflation barometer Copper popped 2 per cent on the London Metal Exchange. Oil reached $74 per barrel, which pushed six of the S&P 500's ten largest movers up while newly electrified Ford wheeled out a +1.5% for shareholders.

The most notable news revolves around an old drama oft-repeated in America- the debt Limit. The current postponement of the U.S. debt limit ends July 31. If it isn't raised or suspended, then Treasury can't borrow funds to cover government expenses like maturing debt repayments.

Treasury Secretary Janet Yellen said the U.S. Treasury would exhaust emergency measures that avoid exceeding the U.S. debt limit by August unless Congress raises the limit again. Said Congress is closed from August to mid-September. Nice one. She warned the consequences of default would '.. precipitate a financial crisis. It would threaten the jobs and savings of Americans -- and at a time when we're still recovering from the Covid pandemic.' We have heard Treasury Secretary's make these alarming sounds in the past so markets largely assume its political theatre- lets hope so.

On other Federal hand-wringing data, the pandemic pushed the nation's debt to other countries up by nearly 12%. The U.S. current account deficit expanded by $20.7 billion (11.7%) to $195.7 billion in the first quarter of 2021. Thats equal to 3.6% of GDP in the first quarter, up from 3.3% at the end of 2020. Thats the highest since 2008, when oil prices hit $150 a barrel but well below the 2005 peak of 6.3%. Exports will eventually tame this number into the future, all things well.

The usual suspects of short supply and rising prices weighed new home sales which declined 5.9% in May over April, compared to a rise of 0.2% expected. Other data saw a divergence between Manufacturers PMI and the Service sector PMI.

Manufacturers PMI rose to a record high of 62.1 in May and beat estimates for 61.5. However, the services sector PMI fell more than anticipated to 64.8 from 70.4 in May after forecasters guessed 70.0 for the month. Prices for goods and services are still growing sharply, with record supply shortages so acute that manufacturers warehouse stocks are being consumed quickly with firms grappling to meet demand.

US Dow Jones	33874.24	-71.34	-0.2%
US S&P500	4241.84	-4.6	-0.1%
US Nasdaq	14271.73	+18.465	+0.1%
UK FTSE	7074.06	-15.95	-0.2%
German Dax	15456.39	-179.94	-1.2%
Gold futures ($US/oz)	1783.4	+6	+0.3%
Spot Iron Ore ($US/t)	216.6	+3.9	+1.8%

Europes' STOXX 600 lost 0.7% after resounding PMI numbers reflected business growth at 15 years records which stoked inflation fears. Utility stocks fell 1.4%, with most sectors and major bourses closed in the red.

IHS Markit's 'flash' reading increased from 57.1 in May to 59.2 in June, its highest since June 2006, and a third successive month of quickening output as the EU re-opens. Our futures are off 25 thirty minutes to open after Wednesdays 44-point loss for the S&P/ASX 200.

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