South Africa
The JSE all-share index closing the day at 67 465 from its opening price of 67 760.
On Friday the South African equity markets saw Visual International Holdings Ltd. (VIS) being the biggest loser of the day with a -12.50% loss moving from R0.08 to close the day at R0.07, whilst Acsion Ltd. (ACS) saw a 46.62% gain moving from R3.99 to R5.85, making it the biggest winner in the equity market.
The Rand took a knock against the US Dollar on Friday, moving from R15.14 to R15.25
Massive Fuel Price Increase Set For November
Commodities
Commodities showed strong recovery signs with most of our listed commodities closing higher than their opening price on Friday.
Gold moved from 1 1798.91 USD/oz to close on 1 1793.28 USD/oz.
Platinum closed Friday at 1 068.19 USD/oz from its opening price of 1 022.22 USD/oz
Copper closed on 9 993.00 USD/t from its opening price of 9 808.50 USD/t
Oil prices were up with Brent Crude moving from 84.38 USD to close at 84.71 USD.
Global Markets
RBA confirms end of yield curve targeting and after abandoning any attempt to defend the 0.1% for the April 2024 yield last week, the bank confirmed today that the yield target has been ditched and opened the door for an earlier interest rate hike.
Lowe stressed that the bank will see through spikes in the inflation rates, and that unlike elsewhere the RBA sees a further, but gradual increase in core inflation, as there is a lot of inertia in the labour market, which makes it hard to see inflation accelerating too quickly.
Australian shares fell on Tuesday – Miners and banks worst performers
AUD tanked as markets adjusted rate hike bets. AUDUSD at 0.7465 from 0.7533.
US Yields were off their early highs (Currently 10yr fractionally higher at 1.56% compared to the day’s peak at 1.603%).
The US Dollar index is down as US futures in the red after a largely weaker session in Asia despite the strong earnings season. Overnight prices wobbled after the Manchin remarks and mixed data, but all rallied into the close. (A beat from the ISM, but a miss on construction spending, though they still modestly boosted growth prospects).
The USA100 climbed 0.63% to 15,595, while the USA500 was 0.18% firmer at 4613, while the USA30 advanced 0.26% to 35,913. Treasury revised Q4 borrowings higher to $1,015 bln, with $650 December 31 cash balance, and $476 bln borrowings for Q1 2022. GER30 and UK100 futures are down -0.17% and -0.21%, respectively.
Senator Manchin continued to oppose a quick vote on President Biden’s massive spending plans, saying he will not vote on a reconciliation package without knowing more about its impacts. He worries over programs that “irresponsibly” add to the debt, which totals over $29 tln, and which risks hurting families that are suffering from “historic inflation.” He said holding the infrastructure bill “hostage” will not get his support for reconciliation.
USOil topped at $83.05, on slow OPEC oil output increase & China ramped up operating rates to meet a spike in diesel demand.
– Hotforex Market Analyst, Andria Pichidi
Things to watch today
Bank of Japan Monetary Policy Statement, Australia Interest Rate Decision, Reserve Bank of Australia Rate Statement, Germany Manufacturing Purchasing Managers Index (PMI), South Africa Total Vehicle Sales, New Zealand Employment Change QoQ
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.
