Thursday 29 September 2021 iDaily Market Wrap

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South Africa

The JSE all share index closing the day at 64 364 from its opening price of 63 784.

The Rand is still under pressure and has seen a continuous decline against the US Dollar, moving from R15.11to R15.19

South African Airways are looking to partner with Kenya Airways to create a Pan African Airline. This will allow both airlines to strengthen their growth in Africa and form a synergy that both the airlines hope will help turn things around from the harsh challenges they faced in the past.

President Cyril Ramaphosa has stated that he will engage the UK’s Prime Minister Boris Johnson regarding the red list travel ban that the UK has imposed on South Africa.

Commodities

Commodities took an overall knock with our listed commodities closing Wednesday slightly lower than their opening prices.

Gold took a slight knock with a move from 1 734.01 USD/oz to 1 726.37 USD/oz.

Platinum continued on its downward movement, closing at 954.33 USD/oz from its opening price of 967.62 USD/oz.

Copper slipped by -1.2% closing Wednesday on 9 174.00 USD/t from its opening price of 9 281.10 USD/t

Oil prices are still on the low with Brent Crude not breaching the 80.00 USD point. Brent Crude moved from 79.09 USD to closing at 78.64 USD. USOil steadied at the mid of the 74 USD mark.

Global Markets

Global central bank officials stuck to cautious optimism at the European Central Bank (ECB) conference on central banking and data releases overnight were mixed. – President Christine Lagarde stressed the “reopening of the economy”.

Traders are still cautious, while keeping a wary eye on US budget talks as a deadline to keep running is approaching amid last minute political wrangling in Washington.

China PMI readings mixed – manufacturing PMI unexpected signalled contraction, while the Caixin PMI came in stronger. Japan production as well as retail sales disappointed, while Australia building permits jumped. UK GDP revised sharply higher in the final reading.

Yields steadied with the US 10-year rate stymied the drop in rates at 1.51%.

Equities supported by the drop in Treasury yields which enticed buyers back into equities, especially with beliefs the recent declines were overdone. JPN225 down -0.1%, USA500 outperforming at 4398, USA100 slipped -0.24%.

“A combination of higher U.S. yields, impending Fed tapering and skittish markets around the debt ceiling have fuelled this move (in the dollar),” – Westpac analysts

Things to watch today

Japan Industrial Production MoM, Japan Retail Sales YoY, New Zealand ANZ Business Confidence, China Manufacturing Purchasing Managers Index (PMI), China Caixin Manufacturing Purchasing Managers Index (PMI), U.K. Gross Domestic Product (GDP) YoY, U.K. Current Account, South Africa M3 Money Supply YoY, South Africa Private Sector Credit, France Consumer Price Index (CPI) MoM, France Consumer Spending MoM, Germany Unemployment Change, South Africa Producer Price Index (PPI) YoY, South Africa Trade Balance, U.S. Gross Domestic Product (GDP) QoQ, U.S. Fed Chair Powell Testifies, U.S. Initial Jobless Claims.

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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