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Wealth Daily 28 September 2021

WEALTH DAILY 2021-09-28
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US equities were mixed on Mon. Growth stocks came under pressure while Treasury yields rose. The yield on the 10-year Treasury note added another 3.62 basis points (bps) to 1.4871%. The 10-year yield traded as high as 1.505%. 

The S&P 500 Index slipped by 0.28% to 4,443.11 and the tech-heavy Nasdaq Composite shed 0.52% to close at 14,969.97. The Dow Jones Industrial Average rose by 71.37 points to 34,869.3. 

Higher yields boosted financial stocks. Goldman Sachs (GS US, +2.3%) and JPMorgan Chase (JPM US, +2.4%) were among the Dow’s best performers. 

Energy stocks were also outperformers on Mon, as US crude futures breached the US$75 per barrel mark. Exxon Mobil (XOM US, +3.0%) and ConocoPhillips (COP US, +2.6%) rose. 

US WTI crude for Nov delivery rose $1.47, or 2%, to settle at US$75.45, the highest price in almost three years on Mon. Brent crude for Nov delivery increased US$1.44 dollars, or 1.8%, to close at US$79.53 a barrel. 

US natural gas had its highest front month finish since Feb 2014, as investors monitored concerns of an energy shortage in Europe. Oct natural gas rose 57 cents, or 11%, to settle at US$5.706 per million British thermal units. 

The most actively traded US gold futures (Dec) contracts settled up $0.30, or 0.02%, at US$1,752.00/oz. Dec silver, which is the most actively traded silver futures, rose 26.9 cents, or 1.2%, to end at US$22.694/oz. 

The ICE dollar index (DXY), which measures the strength of the greenback against a basket of currencies, rose 0.06% to 93.383. 

The UK’s 10-year gilt yield rose 3 bps to 0.95%, the highest yield in 30 months. 

European stocks finished mostly higher on Monday, as investors digested German election results. The UK FTSE gained 0.17%, France's CAC 40 rose 0.19%, while the German DAX advanced 0.27%. 

Rolls Royce (RR/ LN, +11.3%) soared, boosted by a new order to supply new B52 engines and the sale of its ITP Aero unit to PE firm Bain Capital.