Stocks Rally Cools in Asia

29/09/2020 The JSE tracked firmer global markets yesterday as positive data lifted investor sentiment, while geopolitical concerns and rising Covid-19 cases remain a threat to world markets. The JSE All Share was up 2.11% with the Banking sector leading the way up 6.43%. Chinese economic data released at the weekend showed that the country’s industrial profits grew for the fourth consecutive month in August, indicating a continuing strong month-on-month recovery. IG Top40 indication is up 103 points, US Futures, Dow + 77 points, S&P + 7 points and Nasdaq + 24 points.
South Africa’s statistics agency is predicted to report unemployment rose to a record 34.9% in the second quarter, which would be the highest of 83 countries tracked by Bloomberg.
• South Africa, China to Revamp 10-Year Strategic Cooperation Plan.
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• News24: 42 people in court for R56m police vehicle branding scam.
• Global Covid-19 deaths hit 1 million as economies struggle
European stocks rallied yesterday, recovering from their worst week since mid-June, with a global rise in coronavirus cases and political developments stateside on investors’ radar. The pan-European Stoxx 600 jumped 2.3% by the close with banks surging 5% to lead gains, as all sectors and major bourses finished in positive territory. HSBC shares surged 9.2% by early afternoon after China’s Ping An Insurance announced that it would increase its stake in Europe’s largest lender. FTSE +1.46%, CAC +2.40%, DAX + 3.22 %.
The S&P is on course for its best two-quarter winning streak since 2009, and the Nasdaq is set for its largest advance since 2000. All three major US stock indices made solid gains on the heels of the longest weekly losing streak in over a year for both the S&P 500 and the Dow. The Dow rose 410 points, or 1.5%, the S&P 500 and Nasdaq rose 1.6% and 1.9%, respectively. Political news is poised to potentially be a major driver of market news this week, with the first debate between President Donald Trump and Democratic nominee Joe Biden set for tonight. Some Wall Street analysts believe the first debate of this cycle could be more consequential for the markets than most debates, with a clear victory by one candidate possibly creating significant market moves.
House Speaker Nancy Pelosi last night said that the Democrats were unveiling a new $2.2 trillion stimulus package, smaller than the more than $3 trillion proposed earlier in the crisis but still well above what Republican leaders have offered.
Shares in Asia-Pacific are mixed in afternoon trade, as logistics firm ZTO Express soared in its Hong Kong debut. Shares of logistics provider ZTO Express surged in the opening minutes of the debut in Hong Kong on Tuesday, jumping about 10% from the offer price of 218 Hong Kong dollars ($28.13) per share. The stock later pared some gains but was still more than 9% higher. The firm is the latest U.S.-listed Chinese company to debut in the city. Hang Seng – 0.64%, ASX 200 – 0.22%, Nikkei + 0.21%, Shanghai Comp +0.25%, Kospi + 0.85%, overall the MSCI Asia ex-Japan index edged 0.3% higher.
Commodities: Brent $ 42.20, WTI $ 40.30, Gold $ 1878, Plat $ 879, Palladium $ 2265.54.
Have a great day.