16/10/2020 The rand fell for a second day and the market was lower yesterday as local investors mulled President Cyril Ramaphosa’s economic recovery plan, while worries about a second wave of Covid-19 weighed on global equities. The All Share closed 0.99% as markets sold off globally on concerns of stimulis package delay, US Elections and the second wave of Civid 19. In the US, President Donald Trump said he is willing to go beyond the $1.8 trillion offer for relief that’s already been put forward, but Senate Majority Leader Mitch McConnell rejected that. Treasury Secretary Steven Mnuchin told Pelosi Trump will personally lobby to get reluctant Senate Republicans behind any stimulus deal they reach.
President Cyril Ramaphosa unveiled a highly anticipated plan to revive the coronavirus-battered economy, with job creation, increased infrastructure investment and enhanced energy security among its key points. Although opposition parties weren’t impressed with the Presidents speech saying we had heard it all before, the market did rally 400 late in the session as SA Inc names caught a bit of a bid.
We should see the local market open slightly positive after theUS rallied well from it’s lows and Tencent trades up 0.75%. IG Top 40 + 127 points.
European stocks closed sharply lower on yesterday as hopes that a U.S. stimulus package would be agreed before the November election waned, and as public health restrictions returned across Europe due to a surge in coronavirus infections. The pan-European Stoxx 600 closed provisionally down by 2.1%, with oil and gas shares plunging 3.1% to lead losses. All sectors and major bourses slid into negative territory. FTSE – 1.73%, DAX – 2.49%, CAC 2.11%. Coronavirus concerns continue to weigh on sentiment too as infections surge in the region. The French government declared a public health state of emergency Wednesday as the country saw hospitalizations from Covid-19 jump above the 9,100 threshold for the first time since June 25.
The Dow and the S&P 500 closed well off their lows over-night, helped by strength in cyclical stocks including financials and real estate names. The Dow closed 0.07% lower, the S&P down 0.15% and the Nasdaq gave up 0.47%. Futures this morning are just a tad softer. Major averages suffered their third straight day of losses on Thursday, their longest losing streak in nearly a month. Retail sales data, due later today will offer an update on the recovery in consumer spending. Economists polled by Dow Jones expect retail sales to rise by 0.7% in September, following a 0.6% rebound in August. Excluding autos, sales were expected to rise by 0.4%.
Asian markets are mostly lower, Japan’s Nikkei declined 0.29%, and the Topix was down 0.67%. In South Korea, the Kospi traded lower by 0.83%. In Australia the ASX 200 is 0.54% lower, Rio Tinto, the world’s largest iron ore miner, posted a 5% drop in third-quarter shipments, and warned that the rate of recovery could slow further in most economies. In Hong Kong the Hang Seng is up 1.07%
Oil prices slid on Friday dragged down by concerns that a spike in Covid-19 cases in Europe and the United States is curtailing demand in two of the world’s biggest fuel consuming regions, while a stronger U.S. dollar also added to pressure. Brent – 0.88% $ 42.78 WTI – 0.85% $ 40.60
Gold prices edged up on Thursday after U.S. President Donald Trump reignited hopes of a coronavirus stimulus package before the Nov. 3 elections, but a strong dollar kept the metal’s gains in check. Spot gold rose 0.3% at $1,906.15 per ounce, silver fell 0.4% to $24.19 per ounce, platinum rose 0.5% to $860.92 and palladium climbed 0.2% to $2,349.04.
Have a great day and a better weekend.