28/09/2020 The Local market should get off to a positive start after yet another sell-off on Friday, the All Share closed down 1.22%. Stocks in Asia gained Monday along with U.S. and European equity-index futures as China’s ongoing economic recovery countered some of the concerns sparked by rising global coronavirus cases. IG Top 40 is up 389 points and Tencent up just 0.20%.
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11:30am: (SA) Aug. PPI YoY, est. 2.05%, prior 1.9%
11:30am: (SA) Aug. PPI MoM, est. 0.4%, prior 1.2%
European stocks closed lower on Friday amid a choppy trading session as investors continued to monitor coronavirus developments and the prospects of economic recovery. The pan-European Stoxx 600 closed down by over 0.2% provisionally, having bounced either side of the flatline throughout the day. Autos shed 1.5% to lead losses while travel stocks swung to almost 3% gains from a 1.8% decline earlier in the session. For the week, the Stoxx 600 lost 3.7%, its worst week since mid-June. FTSE + 0.34%. CAC – 0.69%, DAX – 1.09%.
US Futures all point upwards this morning after a four week losing streak, Futures on the Dow are up 207 points, the S&P 500 futures have gained 20 ponts and the Nasdaq up 66 points. The S&P 500 and the 30-stock Dow were coming off their fourth straight negative week, shedding 0.6% and 1.8%, respectively. It marked the first time since August 2019 that the two benchmarks suffered a four-week losing streak. The tech-heavy Nasdaq eked out a 1% gain last week, posting its first positive week in four as the technology sector rebounded slightly from the recent deep rout.
Major US averages are on track to post steep losses for September, a historically weak month for stocks. The Dow and the S&P 500 have fallen 4.4% and 5.8%, respectively, while the Nasdaq has dropped 7.3%. The declines followed a massive comeback from the coronavirus sell-off that saw the S&P 500 climb more than 50% from its March bottom.
Markets in Asia trade flat to better after Hong Kong-listed shares of Chinese chipmaker SMIC fell following reports that the U.S. has imposed restrictions on exports to the firm due to risks of military use. Shares of SMIC listed in the city dropped 5.81% by Monday afternoon. Weekend data showing China industrial companies’ profits grew for a fourth month supports the medium-term case for mainland equities to outperform. The approaching 8-day break may spur some selling from nervous investors, but the likelihood is that next month sees China stocks shine brightly.
Industrial earnings rose 19% in August, after July’s 19.6% increase, data showed Sunday. The sustained growth from the pandemic lows has been accompanied by a recovery in industrial output and exports, as well as improvement in factory-gate prices and retail sales. ASX 200 – 0.21%, Hang Seng + 0.90%, Nikkei + 1.17%, Kospi + 1.33%
Gold $ 1858, Plat $ 855, Palladium $ 2211, Brent – 0.86% $ 41.56, WTI – 0.94% $ 39.88.
Have a great week ahead.