Wall Street Stocks Gain on Stimulus Hopes in Volatile Session, China/Hong Kong Closed

01/10/2020 U.S. markets closed firmer on Wednesday in choppy trading amid reports on the outlook for a new round of government stimulus. Trading on the Tokyo Stock Exchange, Japan’s NIKKEI 225, was suspended Thursday because of a problem in the system for relaying market information. Most other Asian markets were closed for national holidays. Australian’s stock market firmly anchored in the green this morning. Locally, the rand firmed to R16.6700 levels to the dollar yesterday, in line with emerging markets peers as the dollar retreated, as hopes of more stimulus in the US buoyed market sentiment. Yield on 10 year govt rand bonds fell 3.5 bps to 9.439%. The JSE/All-share closed down 0.44% to 54,264.96 points and the Top 40 gave up 0.55% on the day. The local bourse is down almost5% year-to-date.

EQUITY PREVIEW:
• (ANG SJ): AngloGold Gets Initial $200m Payment for S. African Asset Sale
• (BAW SJ): Barloworld 11-Mo. Opg Profit Down on Lower Sales, One-Time Costs
• (MTN SJ): South Africa to Invite Bids for High-Demand Spectrum This Week
(TFG SJ): Retailer to Make More Clothes in S. Africa to Cut Global Risks
• (TSG SJ): Hospitality Says Tsogo Sun Plans to Acquire All Its Shares
• S. African Insurers Up on Cheap Valuations, Infrastructure Plans
ECONOMIC DATA:
• 11am: (SA) Sept. Absa Manufacturing PMI, est. 55.5, prior 57.3
• 1pm: (SA) Aug. Electricity Production YoY, prior -4.5%
• 1pm: (SA) Aug. Electricity Consumption YoY, prior -3.5%
• (SA) Sept. Naamsa Vehicle Sales YoY, est. -25%, prior -26.3%
GOVERNMENT:
The commission of inquiry into state corruption hears evidence from officials including the premier of the North West province and the former head of procurement at South African Airways

EU/UK
European markets closed the third quarter on a down note after equities were overwhelmed by selling just before the close – Germany warned that delays to the European Union’s recovery fund are almost inevitable due to governance disputes. Royal Dutch Shell retreated after the company said it was cutting about 9,000 jobs globally, by 2022, as it responded to the global slump in oil prices and looked to reposition itself as a green energy provider. At the end of trading: the pan-European Stoxx 600 index dipped 0.11%, alongside a 0.51% drop for the German Dax, while the Cac-40 fell 0.53% to 4,803.44. London’s FTSE100 fell back 0.53%.

U.S.
Wall Street stocks gained some traction to close positively firmer on the last trading day of the third quarter on optimism that there was bipartisan support for another fiscal stimulus bill before the 3 November elections.
The S&P 500 advanced 0.8%, with 9 of 11 main S&P 500 sectors closed higher; the Dow added 1.2%, alongside the Nasdaq rising 0.7%. The ADP’s payrolls survey showed that private sector firms hired 749,000 people in September, more than the 428,000 gain reported for August and ahead of economists’ median forecast for an increase of 650,000. U.S stock index futures start the month of October on a positive note, with market participants bracing for the potential for September’s volatility to carry over into October. Dow futures up 166 points, or 0.60%, and both the S&P 500 futures and the Nasdaq’s are 0.43% and 0.39% fimer in the green

ECONOMY:
Sept. Challenger Job Cuts 7:30am; Weekly Initial Jobless Claims, Continuing Claims 8:30am; August Personal Income, Personal Spending 8:30am; Aug. PCE Deflator 8:30am; Weekly Bloomberg Consumer Comfort 9:45am; Sept. Final Markit US Manufacturing PMI 9:45am; August Construction Spending 10am; Sept. ISM Manufacturing, Prices Paid 10am; Sept. Vehicle Sales

ASIA
Asian markets rise, Japan trading halted due to system outage. China and Hong Kong closed for a holiday. Aussie’s ASX200 1.26 firmer, with real estate sector the biggest gainer at 2.00%.

COMMODITIES
Oil prices were little changed in early trade on Thursday after U.S. lawmakers postponed a vote on a $2.2 trillion coronavirus relief package in hopes of reaching a bipartisan deal. U.S. WTI crude futures 0.17% above the waterline to $40.28 a barrel, after jumping 2.4% on Wednesday. Brent crude rose 0.24% to $42.41 a barrel, after falling 0.2% overnight.
sec

Without the Rain, Nothing Grows. Blessed Day To You All.