Wednesday 13 October 2021 iDaily Market Wrap | IMF Forecasts Growth For SA

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South Africa
The JSE all-share index closing the day at 65 988 from its opening price of 66 101.

On Tuesday the South African equity markets saw Acsion Ltd. (ACS) being the biggest loser of the day with a -33.39% loss moving from R5.99 to close the day at R3.99, whilst Sephaku Holdings Ltd. (SEP) saw a 26.42% gain moving from R1.59 to close the day at R2.01, making it the biggest winner in the equity market.

The Rand slightly recovered against the US Dollar on Tuesday, moving from R15.07to R14.98

The International Monetary Fund (IMF) has revised South Africa’s growth outlook upwards to four-percent for this year. This is good news for South Africa because this will encourage investors that South African is open for business and the economy has growth potential.

Commodities
Gold slightly recovered with a move from 1 757.13 USD/oz to 1 760.18 USD/oz.

Platinum slipped by -0.1%, closing at 1 010.74 USD/oz from its opening price of 1 011.25 USD/oz.

Copper took a -0.9 knock, closing Tuesday with 9 520.00 USD/t from its opening price of 9 604.75 USD/t

Oil prices slightly slipped with Brent Crude moving from 83.65 USD to close at 83.42 USD.

Global Markets
Supply chain disruptions are increasingly hitting production targets and adding to stagflation concerns.

The bond market is overlooking Wednesday’s CPI data and the prospects for a hot report and the FOMC Minutes tonight.

Global Yields grab helped underpin the long end.- reflected in the solid 10-year auction results, while the 3-year evinced weaker metrics. The 2-year is 3.2 bps higher at 0.350%, the cheapest since mid-March 2020.

Equities are down with the JPN225 dropping back by -0.2% while ASX declined by -0.1%. Hong Kong remained closed due to weather warnings, but mainland China bourses outperformed amid strong export growth and stabilizing sentiment on property developers. Japan’s machinery orders unexpectedly contracted and sentiment hit a 6-month low.

Oil steadied in the $79.00 – $81.00 area.

The December 10-year Bund future is down 6 ticks, but the 30-year has rallied while US futures are little changed. GER30 and UK100 futures meanwhile are up 0.2% and down -0.1% respectively, with US futures also lower, after a cautious session across Asia overnight. China angst eased somewhat, but elevated energy prices, supply chain disruptions and delivery problems are keeping stagflation fears alive.

Things to watch today
U.K. Gross Domestic Product (GDP) YoY, U.K. Gross Domestic Product (GDP) MoM, U.K. Manufacturing Production MoM, U.K. Monthly Gross Domestic Product (GDP) 3M/3M Change, Germany Consumer Price Index (CPI) MoM, South Africa Retail Sales YoY, U.S. Core Consumer Price Index (CPI) MoM, U.S. Federal Open Market Committee (FOMC) Meeting Minutes.

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.



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