South Africa
The JSE all-share index closing the day at 68 15 from its opening price of 68 156.
On Friday the South African equity markets saw Eastern Platinum Ltd. (EPS) being the biggest loser of the day with a -76.52% loss moving from R4.60 to close the day at R1.08, whilst Stefanutti Stocks Holdings Ltd. (SSK) saw a 20.83% gain moving from R0.48 to R0.58, making it the biggest winner in the equity market.
The Rand continued to fight back against the US Dollar despite positive US employment numbers on Friday, moving from R15.22 to R15.04
Commodities
Gold moved from 1 769.04 USD/oz to close on 1 818.36 USD/oz.
Platinum closed Friday at 1 036.23 USD/oz from its opening price of 1 028.82 USD/oz
Copper closed on 9 753.00 USD/t from its opening price of 9 699.00 USD/t
Brent Crude moved from 80.54 USD to close on 82.74 USD
Global Markets
US Dollar Index down from Friday’s 1-yr high 94.62 – post NFP – holds the bid. US Yields (10yr crashed into close at 1.453) lifted a tad overnight to 1.46%.
Following records for Equities (440 of S&P500 have reported so far & Q3 Earnings up 41% overall) & a 1-yr high for US Dollar Index to conclude a huge data week, news flow over the weekend weighs on markets to start the trading week.
Tesla CEO Elon Musk, via a Twitter poll, asked if he should sell a 10% stake (USD 21bln) in Tesla; 57.9% voted “Yes” with over 3.5mln total votes.
US House voted to pass $1.2tln bipartisan infrastructure bill late on Friday & sent it to President Biden for signing.
Chinese trade data showed a larger-than-expected trade surplus & strong exports, but USD-denominated imports missed estimates.
Some China Evergrande unit offshore bondholders have not received interest payments due Saturday.
UK reportedly prepared to trigger Article 16 of NI agreement & ditch customs checks before Christmas, EU sticking to deal.
Equities at all-time highs Friday – USA500 +17 (+0.37%) at 4697 (DOW -0.75%) – Big movers – PFE +10.86%, AirBnB +12.98%, DIS +3.14% – USA500.F back to 4683. Asian equities weaker.
USOil – bounced Friday from Thursday’s low at $77.15 – rallied again today as ARAMCO increases prices – trading back to $81.00 now from $79.75 close on Friday.
European Open the December 10-year Bund future is down 9 ticks, U.S. futures are also losing ground. Markets are still finding a new equilibrium after central banks did their best to slap down overblown tightening expectations for the coming years last week. ECB’s Lane in an interview with a Spain’s El Pais also argued again that the current spike in prices will be temporary and that the central bank should not overreact, as inflation is still projected to undershoot target in the medium term. The DAX and FTSE 100 futures are currently down -0.2% and -0.1% respectively, with a -0.4% correction in the NASDAQ leading US futures lower.
– Hotforex Head Market Analyst, Stuart Cowell
Things to watch today
South Africa FX Reserves (USD), South Africa Net FX Reserves (USD), South Africa Business Confidence, U.S. Fed Chair Powell Speaks, Bank of England Governor Bailey Speaks.
Disclaimer
All prices captured are taking from the previous business day. The material is provided for a general information purpose and does not constitute independent investment research. Nothing in this market wrap contains, or should be considered as containing 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.
