Advanced Share Registry : Market Update - 22 September 2021

Published: 2021-09-22 03:12:45 ET ASW.AX

Wall St closed mixed after the meltdown yesterday with the Nasdaq closing in the black. Technology stocks were in favour after they rode the coattails of Uber as they provided a bullish earnings outlook. Investors bought into the dip as they await an update from the Fed, while the over reaction on contagion concerns from China's property giant Evergrande eased. Multi-dwelling homes heats up in August, single family homes drops again. The housing market was in focus as demand continues to weigh on homebuilders. According to the Commerce Department, Homebuilding rose more than expected in August. Housing starts jumped 3.9 per cent with a seasonally adjusted 1.6 million units. This was lastly driven by a rise in multi-dwellings.

Single family homes, which is the biggest share of the housing market fell for the second month at 2.8 per cent. Builders are struggling with issues with labour and land shortages to higher material costs. Demand is on the move in the low rate environment as investors get into the property market before the likely rate hike in the coming future.Fed starts meeting, focus on removing officials as trading on the job. Elsewhere the Fed have started their two-day policy meeting but their focus is on two of their members. Two advocacy groups are calling for Dallas Fed leader Robert Kaplan and Boston Fed President Eric Rosengren to be sacked over their trading activity while on the job. Fed Chair Jerome Powell will address the trading guidelines for Fed members over these concerns. However, if tension mounts on scrutinizing their trading behaviour after their conduct review, the FOMC may lose two of their members. Markets are expecting Fed to start tapering in November

European markets bounced back tracking similarly to Wall St. Paris gained 1.5 per cent, Frankfurt added 1.4 per cent and London's FTSE closed 1.1 per cent higher. In U.K. trade, oil players BP rose 1.7 per cent while Shell jumped 3.3 per cent. Mining giants were mixed. Rio Tinto shed 0.1 per cent while BHP rose 0.4 per cent.

Yesterday, the Australian sharemarket closed 0.4 per cent higher at 7,274 after starting the week in the red. The day started on a grim note and firmed up defying the wobbly price in iron ore and contagion concerns in China. For some, it was payday with BHP (ASX:BHP), Santos (ASX:STO) and Oil Search (ASX:OSH) pencilled in to reward shareholders. BHP was set to pay out a whopping amount of over $8 billion. Taking a look at the sectors, gains were almost across the board with financials as the outlier. Energy rose the most at 1.5 per cent followed by technology at 1.2 per cent then consumer discretionary.

Today we have the Reserve Bank Assistant Governor, Michele Bullock slated to deliver an online speech on Bloomberg's Inside Track.

RECENT INDIAN OCEAN SECURITIES TRANSACTIONS

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Advanced Share Registry Limited published this content on 22 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 September 2021 07:11:04 UTC.