Chinese market strong again this morning

08/07/2020 We are indicating a slightly better start with the FTSE JSE Top40 future up 0.35% with the Chinese market strong again this morning and Tencent up 5.2% in Hong Kong. US and European futures are pretty flat this morning.
South Africa’s National Treasury will begin allocating the remaining 45 billion rand ($2.6 billion) of a coronavirus-relief package in October. The plans will be outlined in a medium-term budget policy statement and the February budget review. Health Minister Mkhize to make statement on coronavirus in parliament at 8am.

  • (MCG SJ): Africa’s Largest Pay-TV Firm to Add Sport to Streaming Service
  • (NRP SJ): PRICED: NE Property EU500m 7Y Green Bond MS +395
  • (SNT SJ): Santam to Deliver Opposing Affidavit in Hotel Group Application
  • 1pm: Old Mutual CEO Iain Williamson hosts call with investors
  • 2pm: Absa, Ecobank and Afreximbank CEOs discuss virus response

MARKETS
Yesterday the FTSE/JSE Africa All-Share Index closed up 0.7% to 55,243.80, mostly driven by the gold sector +4.6% as a surge in coronavirus cases globally caused for risk-off sentiment. The Platinum/Palladium sector also gained a solid 2.93%, with banks down 1.04% on a weaker Rand. The Rand weakened 0.7% to 17.10 vs the USD, with the yield on 10 year govt rand bonds that rose 13.5 bps to 9.681%

EU/UK
European markets closed lower yesterday as concerns over the threat to economic recovery of new coronavirus cases in the U.S. and weak German data put the brakes on Monday’s rally. The pan-European Stoxx 600 closed down 0.6%, with tech shares shedding 1.2% to lead losses as most sectors and major bourses slid into negative territory. In London the FTSE 100 closed down 1.53%, the German Dax lost 0.92%, with the Paris CAC 40 shedding 0.74%. German industrial production data came in weaker than expected yesterday, rising by 7.8% in May, a more modest rebound than the 10% expected by analysts. The European Commission also cut its economic forecasts, and now expects the 27-member region to contract by 8.3% this year, followed by a rebound of 5.8% in 2021.
U.S.
Equities were lower amid rising coronavirus cases with the Dow Jones Industrial Average and S&P 500 indexes slipping into the red. The Dow fell 1.5%, with the S&P 500 losing 1.08%. The Greater Miami area on Monday became the latest new Covid-19 hot spot to reverse some of its reopening efforts, as new cases continue to surge nationwide.
ASIA
Asian stocks were mixed Wednesday as concern lingered over the economic impact of the coronavirus. The rally in Chinese shares continued. Stocks slipped in Australia, Japan and South Korea, and edged higher in Hong Kong. The Shanghai Composite Index climbed for a seventh session. The Nikkei is down 0.78%, the Hang Seng slightly positive up 0.42% (Tencent +5.5%) and the Shanghai is 2.0% higher. In OZ the ASX 200 slipped 1.5% after cases in Victoria rose by 134 overnight, and as new cases linked to the hotpot were found in Canberra, with the metals & mining index down 0.18%
COMMODITIES
Oil was anchored near $41 a barrel with an industry report signaling a surprise gain in U.S. crude stockpiles, while concerns linger about the threat to demand from rising coronavirus infections. Gold’s allure is only getting stronger as the coronavirus pandemic roils economies and central banks unleash vast stimulus programs. With spot prices nearing $1,800 an ounce, year-to-date inflows into bullion-backed exchange- traded funds have topped the record for full-year additions in tonnage terms set in 2009.