South Africa
The JSE all share index closing the day at 63 661 from its opening price of 64 282.
On Friday the South African equity markets saw Aveng Ltd. (AEG) being the biggest loser of the day with a -16.67% loss moving from R0.06 to close the day at R0.05, whilst Rebosis Property Fund Ltd. (REA) saw a 43.90% gain moving from R0.41 to R0.59, making it the biggest winner in the equity market.
The Rand closed Friday with a good recovery against the US Dollar, moving from R15.07 to R14.88.
SABRIC’s crime statistics show that digital banking fraud has increased by 33% between 2019 and 2020 while debit card fraud has increased by 22%. The rise in cybercrimes has a direct correlation with the rise of digital banking usage and the rise in online payment systems. Consumers are urged to be vigilant when paying for goods and services online.
Commodities
Commodities showed strong signs of recovery with most of our listed commodities seeing recoveries and closing Friday higher than their opening prices.
Gold gained by 0.2% moving from 1 756.95 USD/oz to 1 760.98 USD/oz.
Platinum slightly recovered, closing at 977.11 USD/oz from its opening price of 967.43 USD/oz.
Copper gained by 2.1% closing Friday on 9 135 USD/t from its opening price of 8 944.50 USD/t
Oil prices saw strong signs of recovery with Brent Crude still trading below the 80.00 USD mark. Brent Crude moved from 78.52 USD to closing at 79.28 USD.
Global Markets
The US Dollar Index holds at highs but down from Thursday’s 94.50 high. Strong US data on Friday (ISM Manu PMI 61.1, PCE 4.3% & UoM 72.8). Its NFP Jobs and Pandora Papers week.
Yields hold at recent highs (10yr closed 1.465%) now at 1.47% in Asian trades (huge spike to 1.567% last week cooled but Yields “on notice”) China closed until Thursday, HK Property group (Hopson) has offered $5bn for 50% of Evergrande Real Estate. Contagion still a worry.
Equities rallied on Friday, (Merck +8.37%) anti-viral drug Covid drug) USA500 +49.0 (+1.5%) at 4357 (but remains weak) USA500.F lower 4330. Asian equities mixed. VIX closed at 21.20 Friday – trades at 22.15 now.
USOil holds at $75.20 ahead of today’s OPEC+ meeting which is expected to agree “gradual” production increases, amid supply bottlenecks and inventory drawdowns. OPEC meetings are attended by representatives from 13 oil-rich countries. They discuss a wide variety of topics regarding energy markets and agree on how much oil they will produce or cut back. OPEC is responsible for nearly 40% of the world’s oil supply and have a significant influence on the price of oil.
The December 10-year Bund future is up 8 ticks at 170.30. Asian stock markets traded mixed, but DAX and FTSE 100 are up 0.4%, in catch up trade, after news from Merck lifted Wall Street on Friday. The boost, which also seemed to underpin the outperformance of the ASX in Asia seems to be waning though as China angst and mutterings of stagflation fears weigh on sentiment.
Things to watch today
Switzerland Consumer Price Index (CPI) MoM, Spain Unemployment Change, Vice-President of the European Central Bank Luis De Guindos Speaks, Brazil IPC-Fipe Inflation Index MoM, OPEC Meeting, U.S. Factory Orders MoM, New Zealand Institute of Economic Research Business Confidence
Disclaimer
All prices captured are taking from the previous business day. The material is provided for a general information purpose and do not constitute an independent investment research. Nothing in this market wrap contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance.
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