FTSE JSE Top40 future is pointing to a slightly better start after yesterday’s slump

31/07/2020 The FTSE JSE Top40 future is pointing to a slightly better start after yesterday’s slump, up 350 points or 0.7%. Naspers could lend some support, with Tencent up 1.6% in HK. US and European Futures are all slightly better after yesterday’s sell-off.
President Cyril Ramaphosa will address a virtual national summit on harnessing science and innovation in response to the Covid-19 pandemic. World Health Organization Director-general Tedros Adhanom Ghebreyesus will also take part in the event, scheduled to start at 9am.

  • 10am: Police Minister Bheki Cele will release crime statistics for the year through March
  • 10am: The South African Reserve Bank holds a virtual AGM
  • (AAL LN): Anglo’s Diamond Drag, Mittal Still Cautious: EMEA Materials Wrap
  • (ANG SJ): AngloGold CEO Kelvin Dushnisky to Step Down
  • (SAP SJ): Sappi Third-Quarter Sales Fall 34% on Virus; Shares Slump
    ECONOMIC DATA
  • 2pm: (SA) June Trade Balance Rand, est. 10b, prior 15.9b

MARKETS
Yesterday the FTSE/JSE Africa All-Share Index closed down 1.5% to 55,844, with banks and retailers getting hit the most on a weaker Rand. The Rand was down 2.1% to 16.9039 per US$, currently strengthening slightly to around 16.77, with the Yield on 10 year govt rand bonds rose 5.9 bps to 9.309%

EU/UK
European markets closed sharply lower yesterday after investors digested a record drop in U.S. gross domestic product and a slew of major corporate earnings. The pan-European Stoxx 600 closed down by over 2%, with banks shedding more than 4% as most sectors and all major bourses traded in negative territory. In London the FTSE 100 closed down 2.3%, the German Dax gave up 3.4%, with the Paris CAC 40 shedding 2.1%.
U.S.
The Dow and S&P 500 closed lower last night as investors digested a record-setting drop in U.S. economic activity. Those losses were kept in check, however, as shares of major tech companies rose ahead of earnings. The 30-stock Dow slid 225 points, or 0.8%, to end the day at 26,313. The S&P 500 dipped 0.4%, with the Nasdaq that outperformed, rising 0.4% to 10,587. Data from the U.S. government released Thursday showed gross domestic product plunged by a record 32.9% in the second quarter. The number was not as bad as feared, however, as economists surveyed by Dow Jones had expected a 34.7% decline. Meanwhile, U.S. weekly jobless claims came in at 1.434 million, roughly in line with estimates. However, continuing claims, or those who have been collecting for at least two weeks, totaled 17.018 million, up from about 16 million last week.
ASIA
Asian shares retreated this morning, with stocks underperforming in Japan and Australia, as Tokyo is due to report record infections and amid a warning curbs in Melbourne could be tightened. Shares in China and Hong Kong are flat to higher as manufacturing data for July in China indicated a slow mend for Asia’s largest economy, The Nikkei is down 2.5%, the Hang Seng flat (Tencent +1%) and the Shanghai slightly higher +0.21%. In OZ the ASX 200 slid 2.04%, with the metals & mining index down 2.3%.
COMMODITIES
Oil is set for a third monthly advance before OPEC+ starts returning supply to the market after historic cuts, settling around $40 a barrel this morning, after futures slid 3.3% yesterday as data showed the U.S. economy suffered its sharpest downturn since at least the 1940s in the second quarter.
Spot gold rose as much as 0.8% to $1,972 an ounce and is set for the biggest monthly gain in more than four years after a weaker dollar and low rates fueled its surge to a record. Spot bullion is up 10% in July as a gauge of the dollar slumped, prompting concerns its status as the world’s reserve currency of choice is at risk, and U.S. real yields fell to a record low. Platinum & Palladium prices are also recovering from losses yesterday.