The JSE gave up a little ground yesterday as we saw some profits been taking in the Banks and retailers however Sasol steamed ahead closing up another 14.70 5 at R 172.05, we also saw some good gains in the Property and mining sectors. Overall the All Share closed down 0. 07%. IG markets Top 40 are 284 points higher.
Public Enterprises Minister Pravin Gordhan briefs lawmakers on liquidation of SA Express airline. (12pm)
- Brait Sells Majority of Iceland Foods to Founder Walker.
- African Airways Given Until June 15 to Submit Rescue Plan.
- S. Africa Failed to Rebuild Buffers Post-2008, Kganyago Says.
- Iron Ore Jumps on Mine Halt in Brazil, Gold tests $ 1700.
The S&P closed at a 15 week high, 47% higher than the March low as it returned to positive territory for 2020 as fears over the coronavirus continued to give way to optimism about the reopening of the American economy. The S&P 500 leaped 1.2%, or 38.46 points, to 3,232.39 and turned positive for the year in a quick about-face following the springtime fears over the virus. At one point this year, the S&P 500 was down more than 30% from its all-time highs. It’s now positive for 2020 by 0.05%. The Nasdaq gained 1.1% and hit its own fresh high, bringing its year-to-date advance to 10.6%. The Dow meanwhile, added 461 points, or 1.7%, trimming its year-to-date losses to just 3.3%.
- In Europe, The pan-European Stoxx 600 provisionally closed down by over 0.2%. Technology shares were the worst performers, down about 1.6%, while banks on the other hand rose nearly 1.6%. The negative sentiment in Europe marks a divergence from the largely positive trend seen in Asia and the U.S. Data released yesterday showed that German industrial production fell by 17.9% in April from the previous month as coronavirus-induced lockdowns hammered Europe’s largest economy. This followed a 8.9% drop seen in March and marked an annual decline of 25.3%. Major bourses, FTSE – 0.18%, DAX – 0.23% and CAC – 0.43%.
- Asia this morning is a little mixed with Oz playing catch up to the rally after been closed yesterday, the ASX 200 is up 2.51% with mining index up 2.00%, RIO + 2.84%, BHP + 3.40%. The HangSeng is 1.54% higher, 700HK + 0.93%, the Nikkei and Kospi trade 0.49 and 0.16% lower respectively.
- Oil prices are better this morning after yesterday’s 1.5% sell off, Brent holding nicely above the $ 40 a barrel at $ $ 40.78 and WTI up 0.21% at $ 38.27. Goldman Sachs has also raised its 2020 oil price forecasts, with Brent now seen at $40.40 a barrel and WTI at $36 a barrel. U.S. crude and gasoline inventories are estimated to have fallen by 1.5 million barrels and about 100,000 barrels respectively in the week to June 5, a preliminary Reuters poll showed ahead of a report from the American Petroleum Institute industry group later today. However distillate inventories, which include diesel and heating oil, were seen rising by 2.9 million barrels.
Keep a steady eye on Palladium, testing $ 2000 again, with Chinese car sales improving and manufacturing on the up we get we should see a spike in demand.
Have a great day.