04/09/2020 Overnight on Wall Street, the Dow plunged 807.77 points, or 2.8%, to 28,292.73 — its biggest one-day decline since June 11. The S&P 500 slid 3.5% and the Nasdaq fell by 5%, this has obviously bought turmoil to world markets. The JSE All Share fell the most in three weeks, closing down 2.4% thus losing 2.7% on the week, all indexes were lower with the retailers been the best performer losing just 0.32%. Asia is a sea of red with Aus leading the pack lower, the ASX 200 is 2.91% lower and the Aussie Miners playing catch up are 3.12% lower, Tencent continues down with the tech sell-off, trading 3.00% lower.
We in for a tough start as SA Inc names have been under pressure all week with Insurers and banks hardest hit, IG Futures are 524 points lower and 700HK sharply lower.
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European markets gave up solid gains as the US opened, the pan-European Stoxx 600 ended down by 1.5% as almost all sectors slipped into negative territory. Technology stocks led the losses, falling almost 4%. Final euro area PMI composite readings yesterday showed that economic activity expanded by more than expected in August, coming in at 51.9 against a forecast of 51.6, with a reading above 50 representing monthly expansion. Germany’s services PMI for August was revised sharply higher to 52.5 from a preliminary estimate of 50.8. FTSE – 1.52%, DAX -1.40%, CAC 0.44%.
The Data out the US yesterday almost went unnoticed as markets sold off from the bell. The new U.S. Labor Department figures released yesterday showed that new filings for unemployment benefits totalled 881,000 for the week ending Aug. 29, beating expectations of 950,000 from economists polled by Dow Jones. The Dow slid more than 800 points, or 2.8%, for its biggest one-day decline since June. The S&P 500 plunged 3.5% and the Nasdaq Composite dropped 5%. Thursday’s declines also wiped out the major averages’ gains for the week and knocked both the S&P 500 and Nasdaq off record levels. As a sector, tech had its worst day since March, falling 5.83%. Apple contributed a big portion of those losses, falling 8%. Facebook, Amazon, Netflix, Alphabet and Microsoft also closed sharply lower.
Those steep declines in tech shares come after the space drove the lion’s share of the broader market’s comeback off the coronavirus sell-off lows. Since March 23, the S&P 500 tech sector is up about 70%. For the year, tech has rallied more than 30%.
Data out later today:
• Nonfarm Payrolls, surv 1350K, prior 1763K
• Unemployment Rate, surv 9.8%, prior 10.2%
Asia looks like a sea of red following Wall Street’s sell-off, Aus is the hardest hit down 3.2%, Australia’s retail turnover rose 3.2% on a seasonally adjusted basis in July 2020, according to figures released earlier from the Australian Bureau of Statistics. Mainland Chinese stocks also fell by the afternoon. The Shanghai composite dropped 1.38% while the Shenzhen component declined 1.71%. Hong Kong’s Hang Seng index slipped 1.83%. Hong Kong is 1.63% lower with Tencent down 3.00%. Overall, the MSCI Asia ex-Japan index slipped 1.7%, Nikkei – 1.41%
Gold trades higher on some Dollar weakness, up 0.4% at $ 1937, Platinum $ 896.00, Palladium $ 2315.
Oil prices trade slightly lower, on track for a weekly loss, as investors’ focus shifted to lack-luster demand and ample fuel supplies, offsetting support from a weak dollar. Brent – 082% $ 43.71, WTI – 0.92% $ 40.99.
Have a great day and a better weekend.