South Africa
The JSE all-share index closing the day at 68 049 from its opening price of 67 825.
The Rand continued to fight back against the US Dollar on Monday, moving from R15.04 to R14.92
Commodities
Gold moved from 1 818.36 USD/oz to close on 1 824.18 USD/oz.
Platinum closed Monday at 1 059.10 USD/oz from its opening price of 1 036.23 USD/oz
Copper closed on 9 907.50 USD/t from its opening price of 9 753.00 USD/t
Brent Crude moved from 82.74 USD to close on 83.43 USD
Global Markets
US Dollar Index down again from Friday’s 1-yr high 94.62, under 94.00. PPI today & CPI tomorrow weigh as equities grind higher & yields slip again. FED Vice-Chair Clarida remained Dovish “a ways away from considering raising interest rates,” although “necessary conditions for raising the target range for the federal funds rate will have been met by year-end 2022.” Bullard & Bowman much more Hawkish; “If inflation is more persistent than we are saying right now, then I think we may have to take a little sooner action in order to keep inflation under control.”
Evergrande contemporary Kaisa needs “help”, downgraded by Fitch; Fed warns “ailing Chinese real estate sector poses threat to US economy” – FT
US Yields (10yr closed down again at 1.474%) lifted a tad overnight to 1.497%, below key 1.50 level.
Equities at all-time highs again but limited gains – USA500 +4.17 (+0.09%) at 4701 – Big movers – TSLA -4.84%, AMD +10.14%, AMC +8.06%. Softbank, PayPal, Roblox, Tencent and Zynga all beat Earnings expectations – USA500.F back to 4686. Asian equities weaker.
USOil – slips below $81.00 to $80.65. Biden may act on high US Gasoline prices – speaking with OPEC+ re output, Private Inventories later today.
Overnight – JPY data mixed; Earnings & Current Account weaker than expected, Lending and Econ. Sentiment significantly higher. JPY recovers recent losses. German Trade Balance missed – Exports declined -0.7% while Imports nudged up 0.1%, suggesting more weakness.
The Dec 10-year Bund future up 1 tick, DAX & FTSE 100 futures down -0.2% & -0.3% respectively, US futures also in red, after a largely weaker session across the Asia-Pacific region overnight. Volatility in bond markets has been very high, as markets struggle to find an equilibrium amid the gradual advancing turn in CB cycles. That keeps central bank comments firmly in focus.
– Hotforex Head Market Analyst, Stuart Cowell
Things to watch today
Germany ZEW Economic Sentiment, European Central Bank President Lagarde Speaks, U.S. Producer Price Index (PPI) MoM, U.S. Fed Chair Powell Speaks, Bank of England Governor Bailey Speaks, U.S. Energy Information Administration’s (EIA) Short-Term Energy Outlook, U.S. Interim Assistant Secretary Kashkari 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.
