S&P 500 notches yet another record

26/08/2020 (Bloomberg) — A rally in global stocks stalled within a whisker of February’s all-time high as investors mulled the pace of the recent gains and expectations for loose monetary policy. The local market closed down 0.9% as miners were the biggest losers, the Gold Index down 3.04%, Plats 3.69% and the Resi down 2.56%, we should be in for a slight positive to flat start thanks to Tencent been up 1.56%. IG Futures are flat. Annual inflation is expected to have been 3% in July, up from 2.2% the previous month, according to the median of 16 estimates compiled by Bloomberg.

EARNINGS:
BIDCORP, FY ADJ EPS 7.397 RAND, EST. 10.643
NEDBANK 1H ADJ EPS 4.34 RAND, 1H HEADLINE EARNINGS 2.1B RAND, DOWN 69.2% Y/Y

ECONOMIC DATA:

10am: July CPI YoY, est. 2.95%, prior 2.2%
10am: July CPI MoM, est. 1.2%, prior 0.5%
10am: July CPI Core YoY, est. 3.0%, prior 3.0%
10am: July CPI Core MoM, est. 0.5%, prior 0.3%.

GOVERNMENT:

Finance Minister Tito Mboweni will field questions about the IMF loan, the government’s infrastructure build programme and corruption relating to Covid-19 procurement contracts.
Overnight the Dow lost 60 points as Apple, the gauge’s biggest influence, snapped a five-day winning streak. The tech giant closed the session down about 0.8%. The S&P 500 gain 0.36%, to notch its 17th record close of 2020. The Nasdaq also closed at a record after popping 0.76%. Shares of Facebook rose more than 3%. China and the U.S. resumed trade talks yesterday, in a statement, the Office of the U.S. Trade Representative said that both sides made “progress and are committed to taking the steps necessary to ensure the success of the” phase one trade deal.

The moves in the US came on the back of mixed economic data, however. The U.S. Census on Tuesday reported a 36% surge in sales of newly built homes in July. The Conference Board Consumer Confidence Index, however, fell for a second straight month to 84.8 in August from July’s 91.7. Investors are looking ahead to the Federal Reserve’s annual symposium on monetary policy Thursday, to be held in a virtual format this year. Wall Street will look for clues on further stimulus and where the economy is headed out of the event. Investors will be looking specifically for Fed Chairman Jerome Powell’s comments on inflation and its impact on the dollar.
Shares slipped in Tokyo, Hong Kong and Shanghai on low volumes, while Australian equities underperformed down 0.7% with the Aussie Miners down 1.11%. In corporate developments, Chinese tech giant Alibaba’s affiliate Ant Group on Tuesday filed for a concurrent listing on the Shanghai Stock Exchange’s STAR market — a Nasdaq-style tech board — and the Hong Kong stock exchange. Hong Kong-listed shares of Alibaba jumped 3.57% by the afternoon.
The U.S. energy industry on Tuesday was preparing for a major hurricane strike. Producers evacuated 310 offshore facilities and shut 1.56 million barrels per day of crude output, 84% of Gulf of Mexico’s offshore production – near the 90% outage that Hurricane Katrina brought 15 years ago. Brent $ 45.96, WTI $ 43.30.
Gold was little changed on Wednesday, as worries over global economic outlook offset pressure from signs of progress in U.S.-China trade negotiations, while investors await a speech from U.S. Federal Reserve Chairman Jerome Powell. Spot gold was flat at $1,928.35 per ounce by 0306 GMT. U.S. gold futures rose 0.6% to $1,934.70. Elsewhere, silver fell 0.3% to $26.35 per ounce, platinum eased 0.1% to $926, and palladium slipped 0.7% to $2,149.97.
Have a great day.