21/08/2020 Asian equity markets and U.S. index futures climbed on Friday as technology shares continued to drive gains, swimming against the trend over concerns of global economic recovery. Markets modestly advanced in Hong Kong, China and Japan – following a fresh Nasdaq 100 record overnight. On Thursday the JSE tracked weaker global markets as Europe grapples with a surge in Covid-19 cases, with Spain re-emerging the epicentre of the pandemic in Europe after recording the highest number of daily infections. The local bourse lost 1.42% to 55,629.98 points and the blue-chip Top-40 1.45%. Platinum miners dropped 5.05%, resources 1.95%, while both banks and financials gave up 2.04% and 1.95% respectively. A dire economic outlook from the US Federal Reserve weighed on the day’s sentiment. This Friday morning Top-40 IG futures are up 295 points, we looking forward to a positive start.
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European markets closed weaker on Thursday after a gloomy economic outlook from the US Federal Reserve and amid concerns about rising coronavirus cases, with ex-dividend stocks pacing the decline.
Ex-dividends were a drag: Mondi, Anglo American and Plus500 were down 5.35%, 4.29% and 0.95% respectively. The FTSE 100 ended the session down 1.61%, alongside a 1.14% decline for the German Dax, while the CAC-40 also slipped 1.33%.
The Dow closed 47 points higher on Thursday as some major tech gains offset minutes from the Fed’s latest meeting and an increase in initial unemployment claims. This week’s unemployment claims data revealed that the number of people filing for jobless claims for the first time increased by 135,000 to 1.106m over the week ended 15 August. The S&P 500 was 0.32% firmer and the Nasdaq Composite saw out the session 1.06% stronger at 11,264.95. On the trade front: China confirmed plans to talk with U.S. officials soon to review progress on their preliminary deal – a rare as relations deteriorate. U.S stock index futures positively firmer this morning: Dow futures up 72 points, or 0.26%, the S&P500 futures also up 0.24%, while the Nasdaq keeps inspiring at 0.22% firmer.
Asian markets were higher on Friday, tailing Wall Street overnight gains, on hopes for development of a coronavirus vaccine: reports that Pfizer’s vaccine is on track to seek October regulatory review boosted sentiments despite ongoing uncertainty about global growth. The Nikkei 225 gained 0.4% in early trading, Hang Seng added 1.26%, while the Shanghai Composite rose 0.64%. Australia’s ASX 200 was little changed at 0.07% .
OPEC+ is calling for more members to reduce output as Oil prices fell on Thursday, on demand concerns driven by cautious views and the US Federal Reserve regarding economic recovery from the coronavirus pandemic.
Oil prices rose in early trade on Friday, buoyed by major oil producers’ efforts to hold back. U.S. WTI) crude futures inched up 0.2% to $42.90, while Brent crude futures rose 0.4% to $44.07.
Wishing you all a good day ahead, and so is the weekend 😉