Thursday 07 October 2021 iDaily Market Wrap | Aramco rose to $2 trillion on the back of sky rocketing oil prices

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South Africa
The JSE all-share index closing the day at 64 301 from its opening price of 63 669.

On Wednesday the South African equity markets saw Randgold & Exploration Co Ltd. (RNG) being the biggest loser of the day with a -10.78% loss moving from R1.02 to close the day at R0.91, whilst Wescoal Holdings Ltd. (WSL) saw a 13.71% gain moving from R1.75 to R1.99, making it the biggest winner in the equity market.

The Rand continued on its recovery trajectory against the US Dollar on Wednesday, moving from R15.00 to R14.97.

R5 million was allegedly spend by the Zululand District Municipality last week for a business breakfast

Commodities
Commodities where mixed on Wednesday with some of our listed commodities closing lower than their opening prices while others showed strong signs of recovery.

Gold made a slight recovery of 0.1%, moving from 1 7660.18 USD/oz to 1 762.74 USD/oz.

Platinum showed strong signs of recovery with a 2.5% gain, closing at 989.50 USD/oz from its opening price of 965.38 USD/oz.

Copper took a -1.4% knock, closing Wednesday on 9 052.60 USD/t from its opening price of 9 177.00 USD/t

Oil prices took a slight knock but Brent Crude is still holding above the 80.00 USD mark. Brent Crude moved from 82.56 USD to close at 81.08 USD.

Global Markets
Saudi Arabia’s oil company Aramco rose to $2 trillion on the back of sky rocketing oil prices. The Market cap value for Saudi’s oil giant is behind Microsoft and Apple as one of the world’s most valuable companies.

The US Dollar Index holds at highs, Stocks recover and ADP beat as debt ceiling is likely to be extended to December. Biden & Xi to hold summit before year end, Oil dipped after surprise build in inventories.

Yields slightly eased (10yr closed 1.5240%) now at 1.54% in Asian trades – Yields very much “on notice” following RBNZ. (30-yr at 2.14%). China remains closed. Evergrande news – investor to go private, clock ticking.

Equities moved higher towards close. USA500 +17.0 (+0.41%) at 4363 (but remains weak) USA500.F higher for 3rd day 4375. Asian equities mixed. VIX closed at 21.20 – trades lower at 20.87 now.

USOil down from record highs $78.95 to $76.50 as inventories surprisingly rose by 2.3 million barrels.

The December 10-year Bund future is down -14 ticks, US futures are also lower. There was also some relief on the energy crunch in Europe and DAX and FTSE 100 futures are posting gains of more than 1%, outperforming versus US futures, which are also moving higher though, led by a 0.6% rise in the NASDAQ as tech-stocks are back in demand.

Things to watch today
Bank of Japan Governor Kuroda Speaks, Switzerland Unemployment Rate n.s.a., Germany Industrial Production MoM, South Africa FX Reserves (USD), South Africa Net FX Reserves (USD), U.K. Labour Productivity, ECB Publishes Account of Monetary Policy Meeting, Canada Ivey Purchasing Managers Index (PMI)

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.



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