In the U.S markets earlier in the day we witnessed the DOW and S&P 500 booked its best quarterly performance in 20years despite eventually sliding after the gauge rounded out a 20% second-quarter surge with U.S. consumer confidence posting its biggest rise since 2011., while the NASDAQ COMPOSITE had its best quarter since 1999, recovering from the lows seen towards the end of March. The DOW gained 217.08, or 0.9%, to close at 25,812.88, the S&P 500 SPX rose 47.05 points, or 1.5%, to close at 3,100.29, while the NASDAQ COMP added 184.61 points, or 1.9%, to close at 10,058.77.
Stocks in the U.K fell on Tuesday with Royal Dutch Shell’s warning of a potential write-down worth $22billion, this literally dragged the FTSE 100 lower after it closed 0.9% lower on the final day of June despite a climb of 9% since the beginning of April. The10-year yield gained three basis points to 0.197%.
The performance from the Asian stocks as investors assessed mixed data on the global economy amid concern over the coronavirus spread and Sino-American tensions were fairly muted as the Japan’s Nikkei 225 NIK slipped 0.2% while Hong Kong’s Hang Seng index HIS gained 0.5%. The Shanghai Composite SHCOMP rose 0.9% while Australia’s S&P/ASX 200 XJO gained 0.6%. Traders and investors also weighed a new national security law for Hong Kong, where China asserted broad new powers to rein in those who criticize its rule with their first arrest on Wednesday less than 24 hours after the new law in the territory.
Following a report which pointed to the first drop in U.S crude stockpiles since May, oil rose after its best quarter in almost three decades. While the stockpiles data spurred some optimism, the demand outlook for the world’s largest economy remains uncertain as a resurgence in the coronavirus sees some states pausing or reversing the opening of their economies. West Texas Intermediate crude increased 2.4% to $40.21 a barrel. Saudi Arabian crude exports fell in June from May in more evidence of the OPEC+ alliance’s determination to curb production. Russia also slashed output last month and the bloc is ratcheting up the pressure on laggard members to meet their commitments. Saudi Crown Prince Mohammed bin Salman held a call with the Nigerian president to discuss “ways of cooperation to enhance the stability” of the market, the state-run Saudi Press Agency reported.
In the Sub-Sahara Sovereign space, tickers in the Nigerian Sovereign curve did trade on a muted note throughout the day with more improved bids seen across the sovereign benchmark curve. Yields compressed slightly by c.5bps while the likes of Ghana and Angola continued to see improved offers as their yields compressed by an average of c.3bps and c.6bps respectively across their sovereign curves.