The JSE all-share index closing the day at 67 782 from its opening price of 67 465.
On Tuesday the South African equity markets saw Sebata Holdings Ltd. (SEB) being the biggest loser of the day with a -27.86%loss moving from R2.80 to close the day at R2.02, whilst Capital & Regional plc (CRP) saw a 15.62% gain moving from R10.05 to R11.62, making it the biggest winner in the equity market.
The Rand took a knock against the US Dollar on Tuesday, moving from R15.25 to R15.44
Gold moved from 1 1793.28 USD/oz to close on 1 187.76 USD/oz.
Platinum closed Tuesday at 1 041.26 USD/oz from its opening price of 1 068.19 USD/oz
Copper closed on 9 770.50 USD/t from its opening price of 9 993.00 USD/t
Brent Crude remained flat close at 84.72 USD.
A global rally in bonds helped knock Treasury rates lower as the markets repriced central bank outlooks, paring some of the more aggressive views on rate hikes. The moves across Treasuries, EGBs, and Asian bonds were precipitated by the RBA’s ending of YYC and push back against expectations for a 2022 tightening.
Fears of an aggressive FOMC in 2022 were also pared, as were worries over a BoE rate hike as soon as Thursday. – US Yields lower (10yr rate fell to 1.54%).
The US Dollar Index eased as US futures steadied after posting new highs – The USA30 rose 0.39% to 36,053, closing over 36k for the first time ever. The USA500 advanced 0.37% to 4630, with the USA100 0.34% firmer at 15,649. GER30 and UK100 futures are down -0.013% and -0.12% respectively.
Premier Li Keqiang warned that the Chinese economy faces new downward pressure, amid a pick up in Covid-19 case numbers, higher energy prices and supply problems. A strong China services PMI failed to lift confidence.
USOil down at $81.18 amid some encouraging comments ahead of the OPEC+ meeting, which supported hopes that there will be some sort of agreement on higher outputs after all.
Tesla’s Elon Musk bemoans German red tape, again – Tesla found a floor at 1145.
Fired Apple employee files complaint with US labour agency – Apple at 150.00.
FOMC preview: the Fed will resume its meeting today and announce its decision at 18:00 GMT, to be followed by Chair Powell’s press conference at 18:30 GMT. This meeting does not include the quarterly economic forecasts or dot plots. The announcement of QE tapering is fully anticipated, leaving attention on Powell’s remarks and how he addresses inflation and growth dynamics. We expect he will reiterate the view that inflationary pressures are “transitory,” while acknowledging that prices have been elevated and are likely to remain high but mostly due to the reopening from the pandemic and supply chain factors. He also should note the slowing in growth as evidenced by the slippage in Q3 GDP to the 2% rate, but again much can be attributed to supply constraints of labour and materials. Powell will not signal any timeframe for rate hikes but will try to downplay risks of a June lift-off while continuing to differentiate tapering from tightening.
– Hotforex Market Analyst, Andria Pichidi
Things to watch today
South Africa Standard Bank Purchasing Managers Index (PMI), U.K. Composite Purchasing Managers’ Index (PMI), U.K. Services Purchasing Managers Index (PMI), Eurozone Unemployment Rate, European Central Bank President Lagarde Speaks, Germany 5-Year Bobl Auction, U.S. ADP Nonfarm Employment Change, U.S. Crude Oil Inventories, U.S. ISM Non-Manufacturing Purchasing Managers Index (PMI), U.S. Federal Open Market Committee (FOMC) Statement, Fed Interest Rate Decision, U.S. Federal Open Market Committee (FOMC) Press Conference.
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