South Africa
The JSE all-share index closing the day at 66 981 from its opening price of 67 051.
On Monday the South African equity markets saw Sebata Holdings Ltd. (SEB) being the biggest loser of the day for two consecutive days with a -13.18% loss moving from R2.20 to close the day at R1.91, whilst African Dawn Capital Ltd. (ADW) saw a 88.89% gain moving from R0.09 to R0.17, making it the biggest winner in the equity market.
The Rand slightly recovered against the US Dollar on Monday, moving from R14.82 to R14.72
Commodities
Commodities kicked start the week on a positive note with most of our listed commodities closing higher than their opening prices
Gold closed Monday with a slight gain moving from 1 792.65 USD/oz to 1 807.73 USD/oz.
Platinum closing at 1 062.42 USD/oz from its opening price of 1 043.99 USD/oz
Copper gained by 2.2%, closing Monday on 10 070.75 USD/t from its opening price of 9 857.00 USD/t
Oil prices continued on their upward movement with Brent Crude moving from 85.53 USD to close at 85.99 USD.
Global Markets
The First FED rate hike was pushed up to June, with two quarter point tightening priced in for 2022. Wall Street firmed too on the back of strong earnings with more new record highs on the USA500 and the USA30. Also underpinning sentiment are expectations that the fiscal package will make it out of Congress.
Fed Chair Powell has warned that inflation could be higher and more persistent than previously expected.
US Yields – 10yr backed up 0.9 bp overnight to 1.64%.
Equities were mixed with the NASDAQ pushing through and climbing by 0.9% amid support from the slip in yields – 4582. The NASDAQ bounced to 15602.
Facebook reported mixed third quarter earnings on Monday, slightly missing revenue estimates but continuing to grow its user base. FB +2%.
TSLA (+12.6%) joins the$1 trillion market cap group after 11 yrs – took AMZN 22 yrs. It’s bigger than the combined value of the next 9 biggest car makers but it sells less than 1% of world car sales. Elon Musk added $36BN to his net wealth yesterday alone. UBS beats on revenue – but sales are mixed.
USOil holds up again on supply concerns & trades close to 7-year highs at $82.50.
The December 10-year Bund future is down -20 ticks at 168.45, underperforming versus US futures, although in cash markets the US 10-year rate is down from overnight highs, but still up 0.4 bp at 1.63%, as a 0.5% gain in the USA100 is leading US stock futures higher. GER30 and UK100 are posting gains of 0.2% and 0.1% at the moment, after a somewhat mixed session across Asia.
Things to watch today
Singapore Industrial Production YoY, U.K. 5-Year Treasury Gilt Auction, German Bundesbank Vice President Buch Speaks, European Central Bank Enria Speaks, U.S. CB Consumer Confidence, U.S. New Home Sales.
Earnings
Microsoft, Alphabet, Visa, Eli Lilly, Novartis, Twitter, General electric, UBS, Robinhood.
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.
