Global equity markets ran out of steam on Thursday torn between hopes of a Covid-19 vaccine and increasing tensions between the US and China.

17/07/2020 Gold +0.09% @ $1798.01, Platinum +0.20% @ $826.20, Brent -0.35% @ $43.22, WTI -0.20% @ $40.65%

JSE/All-share index lost 0.25% to 55,808.41 points and the Top-40 index was 0.47% weaker by the close. China warned, on Wednesday, that it would retaliate after US President ended Hong Kong’s special economic status. The rand reached an intra-day low of R16.72/$, however banks gained 2.55% for the day with Standard Bank leading the gains in the sector by 3.39% to R114.96. Financials bagged 2.07% for the day, while gold mining 2.41%. Yield on 10 year govt rand bonds fell 0.2 bps to 9.373%

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Annual general meetings: ZED SJ
Extraordinary Shareholders Meeting: PSG SJ

European stock markets ended the day in the red on Thursday, as investors mulled the latest UK jobs data, as well as US employment numbers that were little changed, and economic growth figures out of China. The FTSE 100 ended the session down 0.67%, German Dax dipped 0.43%, alongside the CAC-40 0.46%. The UK unemployment rate was steady at 3.9% for the three months to May, beating expectations for a rise to 4.2%. Markets in this region are set to open flat as Asian stocks were mixed on Friday amid signs of fragility in the U.S. tech rally and ongoing Sino-American tensions. The FTSE is seen opening 12 points, while the DAX 16 points up, I.G futures.

The Dow opened 50.51 points lower on Thursday, weighing on sentiment at the open was news that Chinese stocks had seen their single largest one-day loss since the start of the Covid-19 pandemic and the resurfacing Sino-US tensions. It was said the White House is contemplating a ban that would stop Chinese Communist Party members and their families from entering the US, including travel ban for employees of Chinese tech giant Huawei and other companies it sees as being complicit in helping Beijing abuse human rights. By the close the Dow gave up -0.50%, alongside the S&P500 loosing -0.34%, while the tech heavy Nasdaq slipped -0.73%. Netflix promotes its Mr. Hollywood to co-CEO. Sarandos taking the helm suggests the future will have showbiz at the top of Netflix. Expected data include jobless claims and retail sales. Abbott, Bank of America, J&J, Morgan Stanley and Netflix are reporting earnings. S&P 500 futures down 0.8% to 3,194.50, while the Dow futures are marginally up 0.14%

Asian stock markets mixed on Friday after Wall Street closed lower amid uncertainty about the U.S. economic outlook. Shares in Japan and Australia were also modestly lower, with Nikkei on the backfoot -0.45% while the Aussie’s ASX200 is down -0.11%. Hong Kong’s Hang Seng added 0.52% a day after retreating on weak Chinese retail spending data. MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.5%.

Oil prices fell on Thursday after Opec+ and other producers including Russia agreed to ease record supply curbs – from August through December from 9.7m to 7.7m barrels per day – though the drop was cushioned by tightening global inventories as economic activity picks up. Analysts expect the market to remain in the $40-45 a barrel range.

Wishing you all a good day ahead 😉

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