South Africa
The JSE all-share index closing the day at 68 690 from its opening price of 67 983.
On Wednesday the South African equity markets saw Brimstone Investment Corporation Ltd. (BRT) being the biggest loser of the day with a -13.56% loss moving from R6.49 to close the day at R5.61, whilst eMedia Holdings Ltd. (EMH) saw a 36.11% gain moving from R3.02 to R3.99, making it the biggest winner in the equity market.
The Rand took a knock against the US Dollar on Wednesday, moving from R15.02 to R15.43
Commodities
Gold moved from 1 831.92 USD/oz to close on 1 849.60 USD/oz.
Platinum closed Wednesday at 1 070.66 USD/oz from its opening price of 1 062.72 USD/oz
Copper closed on 9 705.50 USD/t from its opening price of 9 765.50 USD/t
Brent Crude moved from 83.43 USD to close on 82.64 USD
Global Markets
US Dollar Index spiked to 94.96 (July 2020 high). US Inflation at 30-yr high – USD & Gold rocket, Yields rise and stocks sink. Weekly Claims in-line and at pandemic lows. Musk has sold $5bln of #TSLA stock this week, (3% of the 10%) TSLA closed +4.34% yesterday. US & China agree a surprise pact at COP26 and Biden has a plan to “reduce high energy costs”. Overnight – AUD jobs & GBP GDP both missed & UK Industrial & manu data also weak.
Evergrande $148m interest payment was PAID – avoiding immediate default. Next payment due December 28 – $255m. They have total debts of $300bln ($19bln due outside of China).
US Yields (10yr rallied to close up at 1.56%, at a 7-week high, from the 6-week low at 1.4150 on Tuesday. Treasury markets closed today for Veterans Day.
Equities down in worse day in a month. USA500 -38.5 (-0.82%) at 4646 – Big movers; TSLA +4.34%, PFE +3.64%, Ford -3.78% GOOGL -2.03%. Disney missed (DIS+ subscriptions & Theme parks) – 4.5% after hours. USA500.F trades lower at 4650. Asian equities weaker (ASX worst – Nikkei actually +ve on weak JPY).
US Oil – off 7-year highs on Biden’s comments – Inventories – a smaller build than expected 1.0 m vs 1.6m & 3.3m last week – US Oil fell to 79.50. Trades at $80.00 now.
The December 10-year Bund future is down -31 ticks at 170.38, which will leave European markets to continue to digest yesterday’s hot US inflation number and continue to adjust rate hike expectations, which have come back with a vengeance. The spike in bond market volatility over the past month highlights that central bankers need to adjust their communication policy as the rate cycle turns and that repeating the mantra that inflation pressures will be temporary are no longer enough to soothe nerves. DAX and FTSE 100 futures are currently down -0.2% and up 0.1% respectively.
– Hotforex Head Market Analyst, Stuart Cowell
Things to watch today
Australia Employment Change, U.K. RICS House Price Balance, U.K. Gross Domestic Product (GDP) YoY, U.K. Gross Domestic Product (GDP) QoQ, U.K. Manufacturing Production MoM, South Africa Business Confidence, South Africa Mining Production, European Central Bank Forecast, South Africa Budget Balance, South Africa Manufacturing Production YoY.
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.
