Tuesday 28 September 2021 iDaily Market Wrap

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South Africa

The JSE all share index closing the day at 64 197 from its opening price of 64 049.

The Rand continued taking a knock against the US Dollar, moving from R14.75 to R14.96

Commodities

Gold remained flat on Monday with a slight move from 1 750.42 USD/oz to 1 750.16 USD/oz.

Platinum took a slight knock, closing at 983.70 USD/oz from its opening price of 985.36 USD/oz.

Oil prices continued on their upward trajectory, with Brent Crude moving from 78.09 USD to closing at 79.53 USD.

Global Markets

Yields rose with 10yr closed at 1.51% – the highest level since June, with the 30-year testing 2.04%, while the 5-year hit 1.005% before rates retreated from those key areas.

Equities extended losses, but stabilised into this morning. Durable goods added to the bearish bias seen since FOMC’s hawkish pivot last Wednesday. USA500 -51 at 4431 (S1), USA100 -319 at 15095, but currently at 15160. USA30 advanced 0.2% as strength in materials, energy, and financials supported.

Asian equities trade mixed, – property stocks rallied in Hong Kong after China’s central bank said it will work to safeguard the “healthy” development of the property markets – ASX corrected at -1.4%. VIX rebounded from 20DMA & closed at 20.27.

The December 10-year Bund future is down 20 ticks, US futures have also sold off and the US 10-year rate has lifted above 1.5% as investors continue to bring forward rate hike expectations. GER30 and UK100 futures are still up 0.2%, US futures are also mostly higher, as China’s central bank tried to calm nerves on the health of the property sector.

Gilts underperformed yesterday and are likely to continue to remain under pressure after BoE governor Bailey re-enforced the bank’s message on the possibility of hiking rates before bond buying has ended. Many are now expecting a rate hike to come in the first quarter of next year, and while Bailey also highlighted the problems the UK economy is facing this winter, he stressed that monetary policy won’t be able to fix.

Things to watch today

South African Reserve Bank Quarterly Bulletin, Australia Retail Sales, U.S. Fed Chair Powell Testifies, U.S. CB Consumer Confidence, European Central Bank President Lagarde Speaks, Minutes of the Monetary Policy Committee (Copom) meeting of the Central Bank of Brazil.

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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