FOMC later today, consensus no cut.

29/07/2020 The JSE AllShare gained 0.3% as some interest returned to local names with Capitec led the way up 6.7%, we saw a bit of profit taking in the Golds which was short lived at most the counters closed well off their lows. We have the FOMC later today, the consensus is for no further cut but the rhetoric will be important. Sasol is to sell sixteen Air separation units to Air Liquide for about R 8.5, Sasol to release trading statement in early August.

• South Africa Due To Repay $4.3 Billion IMF Loan From 2023.
• Eskom CEO Enters Danger Zone to Fix Debt-Stricken Utility.
• MTM: South African Insurers Bow to Pressure on Covid-19 Compensation.
• Dis-Chem Raised to Hold at Investec; PT 18 rand.
• Gold touched another high early touching $ 1975 before pulling back.

ECONOMIC DATA:

8am: (SA) June Money Supply M3 YoY, prior 10.26%
8am: (SA) June Private Sector Credit YoY, est. 6.5%, prior 6.35%
10am: (SA) June CPI YoY, est. 2.2%, prior 2.1%
10am: (SA) June CPI MoM, est. 0.4%, prior -0.6%
10am: (SA) June CPI Core YoY, est. 2.7%, prior 3.1%
10am: (SA) June CPI Core MoM, est. 0.1%, prior -0.2%.

Overnight in the US markets were lower ahead of the FED later today, the DOW closed 205 points lower, the S&P was down 0.65% and the Nasdaq led the way down 1.27%. Futures this morning are a touch lower, DOW – 83points, S&P – 6 points and the Nasdaq just 8 points lower. Chief executives of Amazon, Apple, Facebook and Google-parent Alphabet will testify before the House Antitrust Subcommittee at noon today following a yearlong probe into their anti-competitive practices. Investors will look for insights on how the Big Tech is handling antitrust challenges from regulators with the authority to break them up.

The Fed is set to release a statement at 2 p.m. ET. Chairman Jerome Powell will have a press conference at 2:30 p.m. ET. The central bank is expected to keep interest rate unchanged at near zero to support the economy still struggling with the coronavirus pandemic. Yesterday, the Fed announced it would extend its emergency lending programs through the remainder of 2020. We expect more results from Boeing, General Motors and General Electric before the bell today, while Qualcomm and PayPal are among the companies reporting after the close .

European stocks closed higher yesterday as signs of progress on fresh U.S. government stimulus efforts seemingly outweighed concerns about a burgeoning coronavirus resurgence worldwide. The pan-European Stoxx 600 closed up nearly 0.5%, with food and beverage stocks climbing almost 1.4% to lead gains while basic resources declined 0.6%. FTSE +0.40%, CAC -0.22%, DAX -0.03%.

• Asian markets are mixed this morning with Chinese stocks leading the gainers, CSI + 1.7% , Shanghai Comp +1.46%, Hang Seng +0.07%, Tencent – 1.42%. ASX 200 -0.25%. Australia’s Consumer Price Index fell 1.9% in the June 2020 quarter, according to data released by the country’s Bureau of Statistics. Shares of Japanese automaker Nissan Motor plummeted nearly 10%in Wednesday afternoon trade after the company on Tuesday forecasted a 470 billion yen loss for the fiscal year 2020.
• Gold is little changed at $1,957.84 per ounce, prices hit an all-time of $1,980.57 on Tuesday before retreating after investors booked profits and the dollar regained some ground.