S&P Rises to highest level ever

19/08/2020 The JSE AllShare closed down 409 points or 0.71% as the Rand rallied 1.4% against the US Dollar, value traded was R23.3bln. It was good to see some interest back in the SA Inc names as they topped the gainers board, MRP gaining 5.59%, in the US the S&P 500 pushed higher overnight, as did the tech-heavy Nasdaq, led by tech giants and large retailers. Gold, platinum and Oil all trade a little softer and the Rand is little changed at R17.32/$ and R 22.96/GBP. We should be in for a subdued open with load-shedding reinstated on level 2 for 9 a.m, while Tyhpoon Higos delayed trade in Hong Kong. IG Makets Top 40 is up just 37 points.

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Overnight the S&P 500 rose to its highest level ever, gaining back all of the index’s coronavirus-related losses. The 500-stock average rose 0.2% to a record close of 3,389.78. It also traded above its Feb. 19 intraday record of 3,393.52 earlier in the trading day. The S&P has rallied more than 54% from its March low, bringing an end to the shortest bear market in U.S. history. The Nasdaq also notched a record on Tuesday after gaining 0.7%, helped by a 4% gain in Amazon and a near 2% gain in Netflix. The Dow dipped 66 points. The Federal Open Market Committee will publish its meeting minutes from its June meeting on Wednesday at 2:00 p.m. ET. Futures are slightly in the green this morning with the S&P + 5 points and Dow + 19 points.

European stocks closed lower yesterday as a choppy start to the week’s trading continued, with investors monitoring the coronavirus pandemic and rising tensions between the U.S. and China. The pan-European Stoxx 600 gave up its earlier gains and fell 0.6% for the session, with bank stocks falling 1.1% and oil and gas firms slipping 1.3%, FTSE – 0.83%, CAC -0.68% and DAX – 0.3%. Investors monitored the latest developments in the U.S.-China technology war. On Monday, President Donald Trump’s administration moved to further tighten restrictions on Huawei by effectively cutting the telecommunications giant off from chips made by foreign firms that have been produced with U.S. software or technology. The British has recovered all of it’s 2020 losses against the US Dollar as the $ steadied near a more than a two-year low, futures in Europe are slightly positive.
Markets are mixed in Asia this morning, with Mainland China softer, the Hang Seng had a late open due to severe storms and is now trading 0.98% lower with 700HK down 0.78%. the ASX 200 is up 0.75% but the Aussie Miners are down 1.51%. Japan’s exports in July declined 19.2% as compared to a year ago, according to provisional trade statistics from the country’s Ministry of Finance released Wednesday. The fall compared against a median forecast for a 21.0% decline by economists in a Reuters poll, the Nikkei is 0.25% higher, overall, the MSCI Asia ex-Japan index rose about 0.1%.
Oil prices have eased today as concerns grew that U.S. fuel demand may not recover quickly amid stalled talks on a post-coronavirus economic stimulus package, overshadowing a bigger-than-expected drawdown in U.S. crude stocks. On the positive side, U.S. crude inventories fell by 4.3 million barrels to about 512 million barrels, more than analysts’ expectations for a 2.7 million-barrel drawdown, while gasoline stocks rose, industry data from the American Petroleum Institute showed after the markets closed yesterday. Brent – 0.84% $ 45.08, WTI -0.72% $ 42.58.
Gold fell below $2,000 an ounce on today after rising sharply in the previous session as the dollar steadied, while investors awaited minutes from the U.S. Federal Reserve’s last policy meeting, Gold has risen 3% in the last two days so no surprise to see some profit taking. Platinum, Palladium and Silver all trade lower.
Have a great day.