Global Markets Close Up, Stock Futures Up, Dollar Steady, Asia Shares Mixed

02/09/2020 The JSE started the month of September with a positive tone, had its first day of gains in three on Tuesday as markets cheered better-than-expected economic data. Global investors found comfort in China’s Caixin manufacturing purchasing managers’ index for August, signalling the prospect of economic recovery for the world’s second-largest economy. The JSE/All-share gained 0.81% to 55,927.69 points and the Top-40 0.93%. The local currency is at R16.63 level to the US dollar, flirting with R16.50 due to the greenback’s weakness. The rand is down, at least, 15% this year. The dollar was steady, having erased overnight losses as data showed U.S. manufacturing (Markit PMI 53.1) expanded last month at the fastest pace since 2018. Yield on 10 year govt rand bonds fell 15.7 bps to 9.129%. Locally, we looking forward to a positive start at the opening.

• The administrators of Comair Ltd. are scheduled to publish a business-rescue plan for the airline.
• South African Post Office Seeks $293 Million State Bailout
• South Africa’s Eskom Resumes Blackouts After Plant Breakdowns
• (OMU SJ): Old Mutual Defers Dividend as Profit at African Firm Plunges
• EARNINGS: Libstar (LBR SJ)
• 9am: National Treasury and Eskom officials will brief Parliament’s Standing Committee on Appropriations on the utility’s financial issues
• 11am: South African Auditor-General briefs media on Covid-19 relief funds audit
• CORPORATE EVENTS:Annual general meetings: AFH SJ, CTA SJ
• EX DIVIDENDS: AFE SJ @ 100cps, AFT SJ @81cps, HMN SJ @ 1 for 5, QLT SJ @ 1cps

EU/UK
London closed in the red on Tuesday, bucking trend, as sterling was rising against its major trading pairs, despite encouraging Chinese and UK manufacturing data.
By the end of trading: the FTSE 100 ended the session down 1.7%, Euro Stoxx 600 had drifted lower by 0.35%, with the French Cac-40 off by 0.18%, while the German Dax on the other hand was up 0.22% .
The Euro seen edging further down, currently trading at $1.1905.

US
Wall Street clawed back some of Monday’s losses, closing on a positive note, as the Nasdaq got off to a strong start on the back of another rally in the sector. At the close, the Dow was up 0.76% , while the S&P 500 added 0.75% and the tech-heavy Nasdaq saw the session out 1.39% firmer at 11,939.67. Stock index futures firmer on Wednesday, with markets encouraged by constructive U.S. economic data and moderating COVID-19 infections. Dow futures up 76 points, or 0.26%, with the S&P500 0.27% firmer , while the Nasdaq futures are 0.50% stronger.

Here are some key events to watch this week:
• U.S. jobless claims for the week ended Aug. 29 are due Thursday.
• U.S. jobs report Friday is forecast to show payrolls continued to rebound in August from virus lows.

ASIA
Asia-Pacific markets are mixed on Wednesday after Australia confirmed it was in its first recession in 29 years. Japan’s Nikkei modestly gaining 0.27% while Hong Kong’s Hang Seng Index slid 0.53%. The Shanghai Composite fell 0.44%, though Tencent is holding up nicely 1.40% up. Aussie’s ASX200 is firm up 1.74%

Commodities
Gold -0.37% @ $1963.18, Platinum -0.64% @ $938.12, Brent 0.83% @ $45.83.

Crude oil futures extended gains on Wednesday after a bigger-than-expected draw in U.S. crude stockpiles and as solid U.S. and Chinese factory activity fuelled optimism of a recovery from the pandemic, boosting investor risk appetite. U.S. crude inventories fell by 6.4 million barrels in the week to Aug. 28 to about 501.2 million barrels, the American Petroleum Institute (API) said, against analysts’ expectations for a draw of 1.9 million barrels.